"This might sound counterintuitive at first, but the fall-off in UNH stock could provide a multi-year investment opportunity. There's no denying that the aging baby boomer population will need healthcare, and UnitedHealth could benefit from a ramp-up in demand for services. Furthermore, contrarian investors and value seekers might determine that all of UnitedHealth's known headwinds are already priced into the shares. If that's the case, then UnitedHealth stock should surprise the skeptics with a powerful bounce-back by 2030."
"After all, UnitedHealth's valuation is undoubtedly reduced after the share-price collapse. Notably, UnitedHealth has a trailing 12-month (TTM) price-to-earnings (P/E) ratio of 17.51x, which is 17.34% below its five-year average. Also, UnitedHealth has a TTM price-to-sales (P/S) ratio of 0.58x, and that's 55.22% below the five-year average for this company. The critics might call this a "value trap," though, since UNH stock could continue to fall even after getting cut in half."
UnitedHealth's stock has declined roughly 47% over the past 12 months, producing a sharply reduced valuation. The company reports a trailing 12-month P/E of 17.51x, about 17.34% below its five-year average, and a TTM P/S of 0.58x, roughly 55.22% below its five-year average. An aging baby boomer population implies rising demand for healthcare services that could benefit UnitedHealth over time. Contrarian and value investors may view the current weakness as a long-term entry point, but critics warn that the stock could remain a value trap and fall further.
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