UnitedHealth Group IncorporatedNYSE: UNH

The FTC has taken legal action against UnitedHealth Group's Optum division, CVS Caremark, and Cigna's Express Scripts. They are accused of directing diabetes patients to more expensive insulin options.

By entering specific markets and diversifying its strategies, UNH still has a lot of room for growth.

Lately, users of Zacks.com have been focusing on UnitedHealth (UNH). This interest prompts a closer look at what the stock might offer.

Smaller competitors of UnitedHealth's technology division, Change Healthcare, report that they are securing longer contracts with hospitals and other clients who had briefly moved away from the company following the cyberattack in February that disrupted its services.

UnitedHealth is our favorite choice for 2024 because of its solid business strategy and appealing value. Although it has underperformed the S&P 500 by 11%, the stock's future looks promising as challenges in Medicaid and Medicare are expected to improve by 2025. With its size and data advantages, UNH can save costs and provide better care, making it a good investment despite increasing competition and regulatory challenges.

In the most recent trading session, UnitedHealth Group (UNH) finished at $589.14, which is a decrease of 0.87% compared to the day before.

UnitedHealth's strong approach to mergers and acquisitions, like the $13 billion purchase of Change Healthcare, has boosted its data analysis capabilities and profit margins, leading to a 'Strong Buy' recommendation. Although the company faced a significant cyberattack, the financial effects are under control, with a slight drop in earnings per share and higher spending on cybersecurity improvements. Additionally, selling its Brazilian operations lowers foreign exchange risks and supports its goal of growing in the U.S. market, which is benefiting from increased healthcare spending.

Since early January 2021, UnitedHealth stock (NYSE: UNH) has risen by 80%, going from about $335 to nearly $600. In comparison, the S&P 500 has only increased by around 45% during the same time. This shows that UnitedHealth has performed significantly better than the overall market.

UnitedHealth Group is a strong option for long-term investors looking for dividend growth. The stock has recently reached a new high, but it still appears reasonably priced when considering future earnings growth. Regular earnings that exceed expectations indicate that the shares may be undervalued, and there is potential for continued double-digit dividend growth.