🌟✨️ The golden star UNH ✨️🌟 

PERFORMANCE AND CONTEXT

1. ​Stock Volatility

UNH stock has been experiencing significant volatility. It was down more than 40% year-to-date at one point, trading near multi-year lows.  

2. ​Challenges

The company has faced several challenges, including a federal investigation into its Medicare billing practices, a change in leadership, and higher-than-expected medical costs, particularly in its Medicare Advantage business. These factors have contributed to investor uncertainty and a decline in the stock price.  

3. ​Q2 2025 Earnings

UnitedHealth Group's Q2 2025 results showed revenue growth, but net income and earnings per share (EPS) were down year-over-year and missed analyst expectations. NO BIG DEAL. UNH can always icrease premiums or come up with more fancy pplans/ premiums to target the higher income bracket. Not like its facing a dead end with no way to increase its profitability. HENCE I WOULDN'T BE TOO CONCERNED BY SHORTERM HEADWINDS.

4. ​Buffett's Investment

In a major development, Warren Buffett's Berkshire Hathaway disclosed a significant stake in UnitedHealth Group. This news caused the stock to surge, with some analysts viewing it as a vote of confidence in the company's long-term value despite its current challenges.  

FINANCIAL HEALTH: 

✅️ ​Strong Fundamentals

Despite recent issues, UnitedHealth Group is still considered a company with solid fundamentals. It is the largest private health insurer in the U.S. and its revenue has been growing steadily over the past few years.  

✅️ ​Valuation

Compared to the broader market, UNH's stock appears to be trading at a low valuation based on metrics like its price-to-earnings (P/E) ratio. Some analysts believe this low valuation provides a "margin of safety" for investors.

✅️ ​Dividend

The company pays a reliable dividend, and its dividend yield is approximately 2.8%.  

​ANALYSTS AND MARKET SENTIMENTS:

✨️ Analyst Consensus

The overall consensus among analysts is "Strong Buy." However, it's important to note that price targets can vary widely. I myself own UNH and regret not buying more when I saw it at $235, nevermind, I'd add more on the dip.

✨️ ​Bullish Case

The bullish argument for UNH is that its current problems (regulatory scrutiny, elevated medical costs) are temporary. The company's dominant market position and strong underlying business are seen as enduring competitive advantages.

🐻 ​Bearish Case

The bearish view is that the ongoing investigations and cost pressures could have a longer-term impact on profitability and growth.

What do you guys think? To add or not to add?

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