UNH Stock Rally Gains Momentum Ahead of Q3 Earnings Release

UnitedHealth Group (UNH) has been on an upward trend lately, following a rough couple of years. The company's financials have improved significantly, with its stock rising 14% in value this year, outperforming the S&P 500.

The healthcare stock declined by 35% last year but is now looking like a good buy again due to its improving industry conditions and better cost control.

When UnitedHealth reported its earnings in July, its numbers were better than expected, and it raised its full-year earnings guidance. Its medical benefits ratio also came in lower than anticipated at 86.7%, indicating more efficient operations.

The stock is trading at a forward price-to-earnings multiple of around 17, which is based on analyst expectations. This is considered a good value option for investors compared to the average stock on the S&P 500, which trades at roughly 20 times its estimated future profits.