UnitedHealth Group (NYSE:UNH) is one of America’s biggest and best-known healthcare providers. Furthermore, the company is working diligently to provide more and better healthcare coverage. Nevertheless, timing is everything, and you definitely want to time your purchase of UNH stock carefully.
Don’t get the wrong idea here. As we’ll discuss in a moment, there’s a lot for investors to like about UnitedHealth Group. However, there’s an upcoming event that could provide data that’s good, bad or somewhere in between. Consequently, there’s no need to jump into a hasty trade right now.
UnitedHealth Group Grows and Innovates
There’s clear evidence that UnitedHealth Group is making all the right moves to stay at the leading edge of the healthcare market in 2023. For example, UnitedHealth is reportedly expanding its healthcare coverage area.
If all goes according to plan, UnitedHealth Group will reach 96% of all U.S. Medicare recipients with the company’s 2024 Individual Medicare Advantage Plan. So, this healthcare giant is only getting bigger and better positioned to serve more customers.
Furthermore, UnitedHealth Group is attempting to improve healthcare delivery with its Surest health plan. This is an innovative way to serve the customers as Surest “eliminates deductibles and offers clear upfront pricing information to people in advance of treatment.”
According to UnitedHealth Group, there’s data to show that Surest plans can reduce out-of-pocket costs for patients and healthcare costs for employers. That certainly sounds like a win-win. Surest could be a game-changer for healthcare in general and a winner for UnitedHealth and its stakeholders.
Why You Shouldn’t Buy UNH Stock Yet
Now, I must address some concerns. First of all, UNH stock rallied from $447 in June to $526 recently. That’s a sizable run-up for a stock that’s usually not a fast mover.
Moreover, UnitedHealth Group is set to release its third-quarter financial results on the morning of Oct. 13. The company has an absolutely stellar track record of quarterly EPS beats. Yet, all winning streaks must come to an end at some point.
Analysts are setting a high bar for UnitedHealth Group to clear, with a Q3 2023 EPS forecast of $6.33. That’s higher than any recent quarterly Wall Street EPS consensus estimate.
Sure, UnitedHealth Group could knock it out of the park again with excellent earnings results. However, it’s worrisome when this is already assumed and expected and probably priced into UNH stock in advance.
UNH Stock: You Might Get a Dip to Buy Soon
UnitedHealth Group is a giant healthcare company that continues to expand and lead the way with new ideas to improve healthcare coverage. Plus, UnitedHealth has a highly impressive earnings track record.
Nonetheless, it’s prudent to wait for UnitedHealth Group to release its latest round of quarterly financial results. Sure, UNH stock could rally again, but it could also give you a buyable dip. Thus, I recommend waiting until Oct. 18 and reassessing the situation before placing any buy orders.
On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
