Warren Buffett’s Berkshire Hathaway has nearly $348 billion in cash, but struggles to find stocks that meet his investment criteria. UnitedHealth Group, the largest US health insurer, saw its stock price drop over 50% this year, but boasts a 22.7% return on equity and solid financials that may attract Buffett.

Despite UnitedHealth Group’s recent disappointing results, the company maintains strong financials with revenue growth to $109.6 billion, $6.3 billion in profit, and manageable debt. Buffett’s focus on hard numbers over Wall Street expectations could lead him to consider UnitedHealth a bargain at its current price.

Buffett has expressed interest in UnitedHealth Group in the past, and the company’s current valuation at roughly 12 times earnings could be appealing to him. With a focus on future earnings potential and the belief that the company will return to growth, Buffett may see UnitedHealth as a strong investment opportunity.

Buffett’s preference for companies within his circle of competence, like insurance, makes UnitedHealth Group a potential fit for his portfolio. Despite ongoing challenges, Buffett’s investment strategy could align with UnitedHealth’s long-term growth potential, making it a valuable consideration for investors looking to follow in Buffett’s footsteps.

Read more at Yahoo Finance: Warren Buffett’s Next Big Buy? Why This Beaten-Down Blue Chip Stock Fits His Playbook Perfectly.