T
TubeFolio
Back to Dashboard

Is United Health Stock Still Undervalued? | UNH Stock Analysis

Parkev Tatevosian, CFA•Aug 11, 2026

Summary

Parkev highlights UnitedHealth's impressive revenue growth over the past decade, noting a climb from $180 billion in 2017 to $450 billion over the trailing 12-month period. Parkev explains that while revenue growth slowed recently, this was a strategic move by management to exit unprofitable geographies and customer segments after a 2025 period of underestimated service costs. This disciplined approach is currently yielding a rebound in operating profit margins and returns on invested capital, indicating that the business is stabilizing.

UnitedHealth (UNH): Parkev maintains a buy rating on the stock, emphasizing that the current valuation remains attractive with a forward price-to-earnings ratio of 18. Parkev calculates the fair value of the business at $473 per share, suggesting that the current market price near $404 offers significant upside potential for investors. Parkev notes that while UnitedHealth will likely never achieve exceptionally high profit margins due to its reliance on government contracts, this business model provides desirable stability and lower risk regardless of broader economic cycles.

Mentioned Stocks

UNH
Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev reaffirms a buy rating because the valuation is attractive based on a forward P/E of 18 and a calculated fair value of $473. Parkev believes the company is successfully recovering from margin collapses caused by 2025 cost-estimation errors.

Loading chart...