UnitedHealth Stock: ‘Big,’ ‘Fat,’ and ‘Rich,’ or an Undervalued S&P 500 Buy Here?

Company Overview - UnitedHealth Group is the parent company of UnitedHealthcare, the largest health insurer in the U.S., with a market capitalization of $280 billion [3]. - The company operates in the managed care marketplace, serving both employer and individual accounts, as well as Medicare and Medicaid accounts [3]. Stock Performance - UnitedHealth Group's stock has dropped nearly 15% in the last month and is down 48% over the past 12 months, significantly underperforming compared to Cigna Group and Humana, which saw losses of 16.5% and 23.25% respectively [3][4]. - In contrast, the benchmark S&P 500 Index has increased by 11% over the same period [4]. Financial Metrics - The current price-earnings (P/E) ratio for UnitedHealth Group is 14.9x, which is below the industry average of 20.7x [5]. - The forward P/E ratio is 19.25x, indicating that investors expect stronger performance in the upcoming year, although it is higher than the sector's average of 18.5x [5]. - The company's dividend yield stands at 2.8%, which is significantly better than the sector average of 1.5% [5]. - The next dividend payment of $2.21 per share is scheduled for December 16, with a record date of December 8 [5]. Earnings Performance - UnitedHealth Group reported a return to profitability in its third-quarter earnings report after missing expectations in the first and second quarters of the year, marking the first miss since the 2008 financial crisis [6].