Is UnitedHealth Group Stock a Buy After Another Solid Quarter?

The past few years have been challenging ones for health insurance giant UnitedHealth Group (NYSE:UNH). Rising costs have been weighing on its results, and its five-year returns are in the red, with the stock declining by more than 5% during that stretch. That's unusual for a stock that historically has generated terrific returns for investors.

The company, however, has been showing progress in recent earnings reports and in its latest one, once again showed improvements in its bottom line. The healthcare stock itself has also been picking up steam this year, as it's up around 22% thus far in 2026. With another strong quarter in the books, has UnitedHealth Group done enough to prove that it's a good buy again?

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UnitedHealth exceeded expectations in Q3

Last week, UnitedHealth posted earnings that didn't simply beat expectations; they soared past them. Its revenue for the quarter ending Sept. 30 totaled $112.7 billion, which was down from the prior-year period ($113.2 billion) but far higher than what analysts expected -- $111.4 billion. Its adjusted earnings per share (EPS) of $4.69 was also higher than Wall Street's expectations of $4.14.

In light of its improved results, the healthcare company also raised its guidance slightly, now expecting adjusted EPS to be at least $20.50 for the year, which is higher than its previous guidance, which ranged from $19.50 to $20. UnitedHealth has been able to achieve efficiencies by exiting markets that were unprofitable and also investing in artificial intelligence (AI).

Is UnitedHealth stock a cheap buy?

UnitedHealth stock closed at just over $401 last week as it gained momentum amid its strong earnings numbers. Given its sluggish performance in recent years, the stock remains fairly cheap with respect to earnings. Its forward price-to-earnings multiple is around 16, which is based on the level of profitability analysts project from the business in the year ahead. By comparison, the average S&P 500 stock trades at more than 19 times its estimated future profits.

For investors, it appears that UnitedHealth Group can still be an excellent long-term buy given its modest valuation and strong earnings results. It's been heading in the right direction for multiple quarters, and it also offers an above-average dividend that yields 2.3%, making it an attractive option for income investors seeking a reliable payout.

Overall, UnitedHealth is a compelling option for investors seeking value, stability, and dividend income.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.