Is it Time to Buy United Healthcare Stock?

Is it time to buy United Healthcare stock?

Probably not yet.  But as the stock continues to get hammered, it'll soon settle in at some very attractive levels. When that will happen, of course, is still uncertain.

While public sentiment towards the health insurance industry has fallen to all-time lows following the murder of United Healthcare CEO Brian Thompson, that alone isn’t enough to derail United Healthcare stock.

Eventually, the public’s complaints about health insurance will slip back into the shadows of frustration.  As they always do.  Because as much as some folks hate the health insurance industry, it does always prevail.

That being said, it’s unlikely that United Healthcare stock, along with other healthcare stocks, will be safe bets in the near-term.  Particularly because of a new bi-partisan bill that the public is going to love.

It’s a bi-partisan bill that would force health insurers and drug middlemen to divest from their pharmacy businesses.  While I don’t believe such a bill will ever pass, just the introduction of such a bill could further pressure these health insurance stocks.  But eventually, these stocks will rebound.

United Healthcare Stock: Prepping to Buy

United Healthcare stock is probably fairly valued at around $575.  Strictly on a technical basis, that is.  And at some point, I expect it to climb back to that level.  But before that happens, the stock could slip below the $500 level.  At which point, it becomes very interesting.  Although much will depend on how much Congress gets involved.  And of course, what Trump’s plans will be for the health insurance industry.  And we still don’t know what that’s going to be.

So far, all we’ve heard from the incoming president is that he has a plan.  What that plan is, no one seems to know.  Personally, I think it'll have a lot to do with how much of a tribute the industry is willing to offer.

I don’t say this as a criticism of Trump, by the way.  Certainly this wouldn’t be the first time lobbyists have dictated an incoming president’s plans for health insurance.  This is just an observation of truth.  And it’s absolutely relevant when looking at United Healthcare (NYSE: UNH) as a possible buying opportunity.

Truth is, the attacks on the health insurance industry will likely subside in another month or two.  There will be another moral crisis to take its place.  And for the most part, things will go back to the way they were.  So I'm not opposed to buying a few shares of United Healthcare stock on the cheap.  But this will require constant monitoring of policy and public opinion.  Which is something I’m happy to do, but it won’t occupy too much of my time.

After all, even if you’re able to buy some United Healthcare stock on the cheap, you’re still only looking at a potential 15% to 20% upside in the near-term.  And there's no guarantee.  Because the broader market will dictate those gains.  If the broader market tanks, you can forget about those potential gains.

So for us, this isn’t particularly enticing.  Not when we’re now loading up on 17 new AI Equity Checks that deliver steady income.  And this is regardless of how the broader market is performing.  Bull market or bear market, these equity checks show up month after month, and year after year. 

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We’ve already started profiting from these AI Equity Checks, and I would recommend you get a piece of this action for yourself, too.  You can claim as many as 17 of these equity checks, too.  Which, by the way, all come from a giant pot of cash valued at $5.42 billion.

In other words, there’s a lot of money here up for grabs, so you might as well grab some.  We even put together this short guide that shows you exactly how to start earning your own AI Equity Checks right now.

To a new way of life and a new generation of wealth…

Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.

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