$UnitedHealth(UNH)$ reports earnings on Tuesday. Yes, the stock has jumped 40% from its August low, but I still think it’s a great buy and a stable Buffett pick.
Why?
• Optum is a Rock: Their health services division (Optum) is a major growth engine that helps them manage costs. This is key to long-term stability.
• Medical Inflation Test: The biggest question is how they handle rising costs. If they show good cost-control efficiency and a steady loss ratio, the stock will climb higher.
• Goldman Sachs Backing: The recent 'Buy' rating and $406 price target from Goldman Sachs confirms the institutional view that this stock is going up.
UNH is a defensive winner in a necessary industry. Long term, they will deliver.
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