UnitedHealth Group (UNH) Stock Presents Buying Opportunity Ahead of Earnings

UnitedHealth Group (UNH), the dominant player in U.S. health insurance with a $313 billion market cap, has seen its stock decline 37% over the past year. Regulatory scrutiny over Medicare fraud allegations and leadership changes have weighed on sentiment. The pullback has pushed the dividend yield to 2.5%, with total shareholder yield reaching 5.5% including buybacks.

Investors eyeing a turnaround may find an attractive entry point before the October 28 earnings report. Positive results could spark a rally, while disappointment might offer better valuations. Warren Buffett's Berkshire Hathaway has recently accumulated a $1.6 billion position, signaling institutional confidence.

The company's cost-cutting initiatives, including AI adoption, and planned premium increases for 2026-2027 are fueling optimism. Shares have rebounded 16% in the past month, supported by favorable demographic trends in healthcare demand.