UnitedHealth Group Incorporated (UNH): A Bull Case Theory

 We came across a bullish thesis on UnitedHealth Group Incorporated on Global Equity Briefing’s Substack by Ray Myers. In this article, we will summarize the bulls’ thesis on UNH. UnitedHealth Group Incorporated's share was trading at $353.72 as of October 2nd. UNH’s trailing and forward P/E were 15.31 and 20.08 respectively according to Yahoo Finance.

UnitedHealth Group (UNH), with a market capitalization of $312 billion and a P/E of 15, is a leading diversified healthcare conglomerate providing health insurance, pharmacy care, and care delivery through its Optum division. Despite its scale and market position, UNH’s stock has faced significant pressure, down 32% year-to-date and 45% from its 2024 all-time high, driven by a combination of challenges including rising medical costs, lower profitability, scrutiny following the high-profile assassination of an executive, a DOJ investigation, and regulatory headwinds from Trump’s new healthcare bill.

These events have weighed heavily on sentiment, but the company is actively addressing each issue. In response to rising medical utilization and costs, UNH has implemented pricing adjustments, which are expected to stabilize the medical loss ratio over time. The DOJ investigation, while a potential overhang, is being met with full cooperation, suggesting only limited financial impact. Strategic execution remains strong, and Warren Buffett’s investment in UNH reinforces market confidence in the company’s ability to restore margins and operational discipline. While external shocks have temporarily disrupted performance, the company’s diversified business model, scale in care delivery through Optum, and leading insurance franchise provide resilience and long-term growth potential.

 These dynamics position UNH for a potential rebound as operational normalization and regulatory clarity emerge. For investors, the combination of a depressed stock price, strong underlying fundamentals, and active management response creates an attractive risk/reward profile, suggesting that the market may be underestimating the company’s capacity to stabilize margins, navigate regulatory scrutiny, and resume profitable growth. Overall, UNH represents a compelling opportunity for those willing to look beyond near-term volatility.

Previously we covered a bullish thesis on UnitedHealth Group Incorporated (UNH) by FluentInQuality in May 2025, which highlighted the company’s scale through Optum, strong financial performance, and vertical integration. The company's stock price has appreciated approximately by 20% since our coverage. The thesis still stands as UNH maintains long-term growth potential. Ray Myers shares a similar view but emphasizes recent regulatory and operational headwinds.

UnitedHealth Group Incorporated is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 159 hedge fund portfolios held UNH at the end of the second quarter which was 139 in the previous quarter. While we acknowledge the potential of UNH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.