UnitedHealth stock has dropped, but offers attractive valuation and strong performance indicators

UnitedHealth’s stock (NYSE:UNH) has seen a significant decline, dropping from a high of around $600 to $325 after disappointing Q1 results and management changes. Despite concerns, UNH is trading at attractive valuations and shows strong performance in Growth, Profitability, Financial Stability, and Downturn Resilience. A Trefis High Quality portfolio offers alternative investment options.

UNH stock is cheap compared to the S&P 500, with a price-to-sales ratio of 0.7, price-to-free cash flow ratio of 11.4, and price-to-earnings ratio of 12.9. The company has shown revenue growth averaging 11.3% over three years, reaching $410 billion in the last 12 months. However, its profit margins are weaker than most companies.

UnitedHealth’s balance sheet appears strong, with a Debt-to-Equity Ratio of 28.6% and a Cash-to-Assets Ratio of 11.1%. The stock has shown resilience during downturns, outperforming the S&P 500 in previous market crashes. Despite recent setbacks, UNH’s current valuation and historical performance make it an attractive investment opportunity for long-term investors.

In summary, UnitedHealth demonstrates strong growth, financial stability, and downturn resilience, despite weak profitability. The current discounted valuation presents a buying opportunity for investors, especially with the company’s track record of solid performance. For those seeking lower risk, the Trefis High Quality Portfolio offers a diversified alternative with a history of outperforming the S&P 500.

Read more at Nasdaq: Is It Time To Buy UnitedHealth Stock?