As Trump Calls Insurers ‘BIG,’ ‘BAD,’ and ‘Money Sucking,’ How Should You Play UnitedHealth Stock?

Industry Overview - Health insurance companies are facing volatility due to President Trump's renewed criticism of the Affordable Care Act (ACA), labeling insurers as "BIG," "BAD," and "money sucking" [1] - Market tension was observed on November 10, affecting major companies like Centene, Oscar Health, and Elevance Health, as well as larger firms such as UnitedHealth Group, Humana, and CVS [1] Legislative Context - Trump's remarks coincided with Congress's efforts to resolve the longest government shutdown in U.S. history, with a key debate focusing on the expiration of ACA subsidies [2] - The proposal to transfer funds directly to consumers from the government, bypassing insurers, raises concerns about potential revenue volatility for insurers operating in the marketplace model [2] Company Profile: UnitedHealth Group - UnitedHealth Group, based in Minnetonka, Minnesota, is the largest managed healthcare company in the U.S., with a market capitalization exceeding $291 billion [3] - The company operates through two main segments: UnitedHealthcare (insured segment) and Optum (health services and analytics segment) [3] Stock Performance - Over the past 52 weeks, UnitedHealth's stock has fluctuated between $234.60 and $622.83, with a decline of over 30% noted in 2025 [4] Valuation Metrics - UnitedHealth Group's current valuation shows a price-earnings multiple of 15.43x (TTM) and a forward P/E of 19.88x, indicating a lower valuation compared to its five-year average [5] - The price-sales multiple stands at 0.73x and the price-cash flow multiple at 10.01x, suggesting the company is moderately undervalued relative to its historical valuation and peers like Elevance and Humana [5] - The company maintains a return on equity (ROE) of 19.23% and a profit margin of 3.6%, with a debt-equity ratio of 0.71x, reflecting solid performance within the managed care sector [5]