Is UnitedHealth Group (UNH) Trading at an Attractive Valuation?

2 days ago 4

Soumya Eswaran

Wed, November 19, 2025 astatine 7:25 AM CST 5 min read

Cullen Capital Management, LLC, operating nether the name Schafer Cullen Capital Management, Inc. (SCCM), has released its “SCCM Value Equity Strategy” third-quarter capitalist letter. A transcript of the missive tin beryllium downloaded here. The US equity marketplace continued the rally successful the 3rd quarter, with the S&P 500 returning 8.1% and the Russell 1000 Value surging 5.3%. The worth equity strategy returned 6.9% (gross of fees) and 6.8% (net of fees) successful the quarter, portion the Russell 1000 Value and S&P 500 returned 5.3% and 8.1%, respectively, during the aforesaid period. The strategy returned 13.0% (gross), YTD, compared to the Russell 1000 Value’s +11.7% instrumentality and the S&P 500’s +14.8% return. In addition, you tin cheque the fund’s apical 5 holdings to find its champion picks for 2025.

In its third-quarter 2025 capitalist letter, SCCM Value Equity Strategy highlighted stocks specified arsenic UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth Group Incorporated (NYSE:UNH) is simply a diversified healthcare institution that operates done UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx segments. The one-month instrumentality of UnitedHealth Group Incorporated (NYSE:UNH) was -13.25%, and its shares mislaid 47.78% of their worth implicit the past 52 weeks. On November 18, 2025, UnitedHealth Group Incorporated (NYSE:UNH) banal closed astatine $313.58 per share, with a marketplace capitalization of $284.053 billion.

SCCM Value Equity Strategy stated the pursuing regarding UnitedHealth Group Incorporated (NYSE:UNH) successful its 3rd 4th 2025 capitalist letter:

"UnitedHealth Group Incorporated (NYSE:UNH) was purchased successful the Value strategy during the quarter. UNH is the largest diversified managed attraction enactment successful the United States, operating a starring wellness insurer (UnitedHealthcare) and a almighty healthcare services level (Optum). Its vertically integrated exemplary enables UnitedHealth to harvester insurance, pharmacy payment management, information analytics, and supplier services, allowing it to amended coordinate care, negociate aesculapian outgo trends, and seizure synergies crossed its businesses. This standard and diversification supply UnitedHealth with a durable cost-advantage and network-effects moat anchored successful section scale, switching costs successful Optum Rx, and Optum Insight’s starring presumption successful information and exertion solutions. Under erstwhile CEO Andrew Witty, the institution pursued assertive enlargement into caller lines of concern without afloat accounting for the associated risks and acquired galore companies that were not successfully integrated. In addition, its ambitious rank maturation strategy drove higher-than- expected utilization, starring to higher aesculapian costs and a crisp diminution successful earnings. The institution is undergoing a multi-year turnaround nether caller leadership, pairing taste betterment with operational discipline. Management, led by returning CEO Stephen Hemsley, has reset expectations by guiding to astatine slightest $16 successful adjusted EPS for 2025, providing a caller baseline from which net maturation is expected to resume successful 2026. Hemsley is wide regarded arsenic a beardown strategical person and relation who has emphasized restoring the show civilization and subject that characterized the institution during his tenure. Strategic actions see repricing for higher aesculapian trend, exiting plans serving implicit 600K Medicare Advantage members, narrowing networks, and taking a much blimpish attack to ACA participation. Optum Health has reduced its 2025 caller diligent maturation people by much than fractional to 300K to absorption connected mature markets and expects to present astir $1 cardinal of outgo reductions successful 2026.