Should you buy UnitedHealth Group stock ahead of earnings?

UnitedHealth Group Inc (NYSE: UNH) is reporting quarterly results on Friday, before the bell. Ahead of earnings, the VP of Options at Simpler Trading says the stock is a good pick for the long-term investors.

Shay explains why she likes UnitedHealth stock

UNH is currently exchanging hands at the same price at which it started the year 2022 – somewhat of an achievement considering the broader market is down more than 20% year-to-date.

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But Danielle Shay is convinced the stock could go up from here. On CNBC’s “Power Lunch”, she said:

I’m looking for companies that have been able to thrive in the current environment. Because once things improve in the economy, these are the ones that are really going to take off. UnitedHealth Group has been a relative winner in healthcare.

“Healthcare” in general has been the more reliable segment amidst the ongoing turmoil in the equity market this year. The Health Care Select Sector SPDR Fund (XLV) is down less than 10% versus the start of 2022.

Wall Street sees a 15% upside in UnitedHealth Group

Her constructive view is in line with the Wall Street that currently rates UnitedHealth Group at “buy” with upside to $577 on average that translates to about a 15% upside from here.

Shay, however, reiterated that it’s a long-term pick. A strong quarter will lay the groundwork for a slow and steady move up, and not a quick rally “to the moon”. She also likes the stock because it continues to pay a dividend.

Experts’ forecast the American multinational managed healthcare and insurance company to report $5.20 of per-share earnings tomorrow. UNH has topped estimates in each of its last eight quarters.