Should You Buy UnitedHealth Group Stock Before Oct. 13?
David Jagielski, CPA, The Motley Fool
Mon, September 21, 2026 at 2:01 PM GMT+3 3 min read
After a rough couple of years, UnitedHealth Group (NYSE:UNH) has been looking like a good buy again. The company has been stringing together some good quarters, its financials have been improving, and this year, its stock has risen 14% in value, outperforming the S&P 500. It's a stark turnaround from last year, when it was in a tailspin, with the healthcare stock declining by 35%.
On Oct. 13, the company is set to release its next round of earnings numbers for the third quarter. Another strong performance could potentially lift the stock even higher. Is it a good idea to buy it before then?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
Why UnitedHealth Group stock could be heading higher
UnitedHealth Group stock has been beating the market this year, but over a five-year period, it's still in the negative, down around 10%. It's been making up for declines in recent years, but it may still have much more room to rise higher, particularly if its Q3 numbers are strong.
The stock is trading at a forward price-to-earnings multiple of just under 17, which is based on analyst expectations. It's a good value option for investors given that the average stock on the S&P 500 trades at roughly 20 times its estimated future profits.
When it last reported earnings in July, the company's numbers were better than expected, and it raised its full-year earnings guidance. Its medical benefits ratio also came in better than expectations, at 86.7%. That's a key metric, and a reduced percentage indicates better cost control and more efficient operations. It's also indicative of improving industry conditions overall. Rising costs have weighed on health insurers in recent years, but now, things look to be improving.
UnitedHealth stock may be worth buying right now
UnitedHealth's stock has been doing well, and with its low valuation, there's an incentive to buy and hold, as it can be a good value stock. Plus, given its reduced valuation, its yield is also far higher than usual, at around 2.5%. For investors, that sweetens the deal and can boost overall returns, which can be valuable in the event of a market downturn.
The healthcare company has been a good long-term investment in the past, but the last few years were an exception due to rising expenses. Now, however, with industry conditions improving and UnitedHealth in better financial shape, I believe it's safe to buy the stock again.
Should you buy stock in UnitedHealth Group right now?
Before you buy stock in UnitedHealth Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and UnitedHealth Group wasn't one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $387,158!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,365,749!*
That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.
*Stock Advisor returns as of September 21, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
Should You Buy UnitedHealth Group Stock Before Oct. 13? was originally published by The Motley Fool
Yorumlar (0)
Giriş yaparak yorum yazabilirsin.
İlk yorumu sen yaz.