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The largest U.S. health insurer, UnitedHealth Group (UNH), delivered a strong third-quarter performance this morning, underscoring its ongoing recovery from earlier challenges. The company reported revenues of $113.2 billion, a 12% increase year-over-year, driven by robust growth in its UnitedHealthcare and Optum segments. 

Earnings came in at $2.59 per share, with adjusted EPS at $2.92, beating analyst expectations. Cash flows from operations reached $5.9 billion, or 2.3 times net income. Bolstering investor confidence, UNH raised its full-year 2025 outlook, projecting net earnings of at least $14.90 per share and adjusted earnings of at least $16.25 per share.

This beat arrives amid UNH's rebound from a turbulent period, including Medicare funding cuts and elevated medical costs, which pushed shares below $250 in August – a massive discount for a blue-chip stock. Investors who hesitated missed a prime opportunity to snag this quality dividend payer at bargain prices. However, with shares now up about 56% from those lows, UNH remains undervalued and worth buying.

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What makes UNH a standout? As a diversified healthcare giant, it serves over 50 million domestic consumers through UnitedHealthcare's benefits plans and leverages Optum's tech-driven services for payers, providers, and consumers. 

Optum's revenues grew 8% to $69.2 billion in Q3, fueled by pharmacy services and analytics. The company's resilient business model, with a 3.8% operating margin and consistent dividend growth (yielding around 2.4%), positions it for durable expansion. Despite pressures like a 89.9% medical care ratio, UNH's focus on cost control and innovation – evident in serving 96 million Optum Health consumers – drives long-term value.

At current levels, UNH trades at a forward P/E of about 18x, below its historical average and that of its peers, offering a compelling entry point. With accelerating growth eyed for 2026, this recovery story is far from over. 

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