Should You Buy UnitedHealth Group (UNH) Stock Before October 28?

Core Viewpoint - UnitedHealth Group is currently facing challenges, including a significant stock decline and ongoing investigations, but presents a potential buying opportunity for long-term investors [1][3]. Group 1: Company Overview - UnitedHealth Group holds a market value of $313 billion and is the largest health insurer in the United States [1]. - The company's stock has decreased by approximately 37% over the past year due to investigations by the Department of Justice for potential Medicare fraud and the resignation of its CEO [1]. Group 2: Financial Performance - The decline in stock price has resulted in an increased dividend yield of 2.5%, with total shareholder yield (including stock buybacks) reaching 5.5% [2]. - The stock is considered undervalued, with a price-to-earnings (P/E) ratio of 15, significantly lower than its five-year average of 23.6, and a price-to-sales ratio (PSR) of 0.75 compared to a five-year average of 1.29 [3]. Group 3: Future Outlook - The company plans to reduce costs, partly through the use of artificial intelligence, and intends to raise premiums in 2026 and 2027 [3]. - Recent demographic trends, including a growing and aging population, are expected to drive demand for healthcare services, which is favorable for UnitedHealth [3]. - The stock has seen a nearly 16% increase in the past month, indicating some investor optimism [3]. Group 4: Investment Considerations - Investors are advised to consider purchasing shares before the upcoming earnings report on October 28, as positive news could lead to a stock price increase [3]. - Notably, Berkshire Hathaway has been acquiring shares, holding a stake valued at nearly $1.6 billion, which may reflect confidence in the company's recovery [3].