XLV - UnitedHealth: Rejoice When The Market Turns Fearful (Upgrade)
2024-01-29 15:30:01 ET
Summary
- UnitedHealth Group stock was struck by fears over its health insurance business, attributed to the recent Humana steep earnings outlook downgrade.
- However, UnitedHealth's integrated healthcare model helps mitigate the impact of any one segment, improving its resilience.
- Management believes recent uncertainties in the health insurance industry will not have a lasting effect on the company's outlook.
- I explain why UNH is no longer overvalued, with its recent price action suggesting capitulation has likely occurred.
- I highlight why I've decided to turn bullish on UNH, urging investors to capitalize on its recent downside volatility to add more exposure.
UnitedHealth Group ( UNH ) investors have underperformed the S&P 500 ( SP500 ) over the past year, as UNH delivered a 1Y total return of 3.7%. However, it's still much more impressive than Humana's ( HUM ) -27% 1Y total return, as the company suffered a blowout following its recent earnings release, as management offered a significantly lowered 2024 guidance....
UnitedHealth: Rejoice When The Market Turns Fearful (Upgrade)