UnitedHealthcare (UNH) is one of the most dominant companies in healthcare. Yet, it’s trading at its cheapest price in years.Even better, Warren Buffett’s Berkshire Hathaway, which built up its largest cash stockpile in years, reaching $347.7 billion in the first quarter of 2025, just bought 5.04 million shares of UNH for $1.57 billion.

Typically, when Buffett’s Berkshire Hathaway buys a stock, it can lead to increased investor confidence and potentially higher stock prices due to the reputation of the firm and the longstanding belief that Buffett buys quality stocks at a quality price.

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UNH is also trading at 13x earnings, which is about 49% lower than the sector median. Its price-to-free cash flow ratio (P/FCF) of about 10 is also below the sector median of about 14.5. In addition, at 13x earnings, UNH now trades at a substantial discount to the S&P 500’s P/E ratio of 29.76. In short, it’s inexpensive with historically low valuations.

In short, there’s a lot to like about UnitedHealthcare at its current price.

And while we wait for UNH to recover, we can collect its 3% yield.

Sincerely,

Ian Cooper