To The Moon

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Recently, $UnitedHealth(UNH)$ 's stock price has been shaking and dropping from its 52-week high. However, looking at the bigger picture, the "danger" UnitedHealth is facing right now could very well be an "opportunity" for investors.

A key player in the US healthcare system

As the largest health insurance company in the US, it provides medical services to 152 million people and has expanded its business from insurance to include healthcare services and technology systems.

UnitedHealth is deeply integrated into the US healthcare system, which serves as its strong moat. Long-term investors do not need to react to the recent cyber attack incident.

Don’t let down investors

Financially speaking, UnitedHealth is a stellar company with annual revenue exceeding $370 billion and free cash flow of $25 billion. They make money and give back to shareholders by actively repurchasing stocks and increasing dividends.

UnitedHealth has consistently raised dividends for 14 years, yet the dividend payout ratio remains at just 26%, leaving plenty of room for further increases. Additionally, the company has reduced its stock count by over 6% in the past decade, boosting profit growth.

Good stocks are rarely cheap

Analysts have slightly lowered their long-term profit growth forecast for UnitedHealth to around 10.4%. The average PE ratio for the stock over the past decade was 21, now dropping below 18. With a PEG (Price/Earnings to Growth) ratio of 1.7, the current price seems reasonable if the company's performance meets expectations.

UnitedHealth is an outstanding company and a heavyweight player in the US healthcare industry. Stocks of such quality companies are usually not cheap. Therefore, in the current market boom with historic highs, this crisis presents an opportunity for investors to buy this blue-chip healthcare stock at a reasonable price!