UnitedHealth: Q1 Decline Makes Undervalued Stock a Strong Buy With Dividend Upside


It was a few months hectic for Unitedhealth Group (NYSE 🙂 Actions, which reached a summit of $ 630.73 on November 11, 2024, before hunting in December after the murder of CEO Brian Thomson.

In February, the stock was then affected by the concerns about its current merger with Amedisys (Nasdaq :). The actions then fell at a hollow of $ 438.50 on February 21.

The stock climbed regularly and reached a summit of $ 606.36 on April 11, winning 38% in less than two months. But the rally quickly overturned, plunging $ 417.12 Tuesday – this is the lowest level since October 2021.

United has faced a sharp decline after the publication of its quarterly results, lowering 22.38% on April 17 and 6.34% on April 22 after the Easter holidays. The company has declared profits and sales below projections and revised its forecasts downwards for the next quarters.

Since then, the course of action has seemed to stabilize, which could be optimistic that the worst can be late. This presents an opportunity to assess whether the clear drop could offer a chance of purchase.

Analysts now consider that the action is undervalued, with an average target price of $ 573.53, representing an increase of 34% compared to its current level.

In addition, the fair value of Unitedhealth InvestingPro, derived from several established financial models, is set at $ 541.85, indicating a potential increase of 26.6%.

Beyond the potential for substantial increase, Unitedhealth shares also offer a dividend with an annual return of almost 2%. This payment has continued to increase for 15 years, and with a payment ratio of 34.9%, there is enough space for a growth of dividends.

With a significant increase in potential and a strong dividend, UNITEDHEALTH offers the possibility for investors to collect awards on the two fronts. However, as the stock has only stabilized recently, it still has a certain risk.

Fortunately, other American stocks with a robust rise in rising and high dividends are also available.

6 American actions offering high dividends, strong growth potential and financial stability

A search carried out this Thursday using the screen Investing.com and …

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