UnitedHealth Group (UNH) – A Chance to Buy a Leader at a Discount
UnitedHealth has been under significant pressure in 2025, with shares down more than 29% year-to-date, the stock looks a lot more approachable than it has in years. For a company of this caliber—widely considered best-in-class in health insurance and health services—that kind of drawdown creates an interesting setup for long-term investors.
The main challenge has been elevated utilization rates in the post-Covid period. Costs have been running higher than expected, and the company underestimated the impact in its risk management. That has weighed heavily on earnings expectations and on investor sentiment. But here’s the thing: strong companies with a track record of disciplined management usually find a way to correct course, and UnitedHealth has all the hallmarks of one of those companies.
The business remains fundamentally solid, with operations spanning insurance, health care services, and pharmacy benefits. While short-term cost pressures are real, the long-term demand for health care and insurance coverage isn’t going away. As Barbara Doran of BD8 Capital pointed out, premium companies like this tend to recover as they adapt and execute through challenges.
For investors, this kind of reset often creates opportunity. UnitedHealth is still one of the largest and most operationally efficient players in the space, and at these levels, the potential upside looks much more compelling than it did at the highs. There’s risk in the near term, but the company is actively managing forward, and history suggests it’s likely to regain its footing.
Bottom line: UNH’s sharp decline has opened the door for those who’ve been waiting for a chance to buy a health care giant at a discount. For investors willing to be patient, this looks like a setup worth considering.
