UnitedHealth Group Inc (UNH-N)

Well run and uses AI a lot. It's an easy punching bag in the US for critics of the healthcare system. Health is always a political hot knife, but HC is the biggest employer in the US. Some disagree, but it's not in their interest to screw customers (by denying claims). He has been this all the way down.

Healthcare stocks are no longer struggling with the post-Covid hangover, better earnings recently, and good news about Medicare this evening $21 billion payment boost). He expects a good report.

Low beta, more conservative name. Very significant scale. Far ahead of peers with strong alignment of medical insurance, pharmacy benefits, and healthcare services. Aging demographics are key drivers of demand. Shares are 19% off their highs, an opportunity. 18x PE for 11% growth. Yield is 1.7%.

Most diversified managed health care company (own clinics, software & insurance). Recent assassination of CEO not a major concern in terms of outlook for the business (although was a tragedy). Ability to raise prices very strong, with excellent margins on products. Will continue to buy shares. 

The entire US health insurance group is embroiled in a controversy that was unfortunately set off by the murder of UNH, specifically talk about how claims are treated at UNH. These stocks are falling, but hang on and let this pass and see how different parties react. There will always be a place for health insurance companies in the US.

They report Tuesday. Are the only health insurer that regularly beats earnings. Good risk/reward.

He started sell this in early 2023. Is up 20% since Q2, though. He sold it because loss ratios were off, though stabilizing now. 

Is a reliable compounder who always beat and raise, with reliable earnings growth. Solid. They raised their dividend 12%. Good upside to come.

They recovered from a cyber attack. Earnings are growing. Their HMO (Health maintenance organization) is the best in the business. It's a safe play in healthcare.

Provides benefits to 53M members globally. Recent spike lately, but still sees more profits ahead. Upside to target of about 20%. Last earnings report better than expected. Under a Trump presidency, could see reduced regulation and improved reimbursement. Yield is 1.49%.

Averaged 9% annual upside over last 3 years, and 16% for the last 5. Fundamentally a 9/10.

It reports tomorrow and health stocks are all way too volatile in an election year.

They report next week. The big question is Medicare reimbursements; political winds are pushing down on this. Is UNH off-setting this with prices and costs? At 17x forward PE, he'll take the chance.

They're big enough to set prices, but they face government headwinds, so this is a wild card.

Won't buy it ahead of time. They've beaten the last 6 quarters and expects it again. But given its headwinds, he'd be cautious buying pullbacks.