Bernstein Sees Attractive Entry in UnitedHealth (UNH) Stock Ahead of Q2 Earnings

UnitedHealth Group Incorporated (NYSE:UNH) ranks among the best non-tech stocks to buy according to billionaires. On July 18, Bernstein referred to UnitedHealth Group Incorporated (NYSE:UNH) as a Top Pick ahead of the company’s upcoming Q2 earnings, stating that the stock’s decline as a result of the continued challenges has led to a “very attractive entry point.”

Bernstein Sees Attractive Entry in UnitedHealth (UNH) Stock Ahead of Q2 Earnings

According to analyst Lance Wilkes, UNH will profit from a “hardening” of the government Managed Care Organization (MCO) pricing market and a slowdown in utilization to normal levels. In light of reserve strengthening, cost challenges in the Individual and Medicaid businesses, and the “clean-up of OptumHealth risk contracts for less engaged physician practices,” Wilkes reduced his 2025 EPS projection by 10%.

Wilkes also predicts that, after accounting for slower growth rates in UnitedHealthcare Medicare Advantage and OptumHealth, the sector and company-specific margins will produce a doubling of EPS from 2025 to 2029 at a CAGR of 19%.

UnitedHealth Group Incorporated is a renowned US multinational corporation that provides managed healthcare and insurance services. The company operates through four main segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx.

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