Analyst Note| Julie Utterback, CFA |
UnitedHealth Group reported third-quarter results that beat market consensus, and management raised 2021 guidance a bit. We do not anticipate changing our fair value estimate significantly, though, since our profit estimates were already within the new outlook range. UnitedHealth shares continue to look moderately rich to us, especially relative to managed-care organization peers that have similar growth trajectories and risk profiles. Like its peers, UnitedHealth's economic moat remains narrow, which recognizes a top-tier position in medical insurance, pharmacy benefits, caregiving services, and analytical tools offset slightly by long-term policy risks in end markets.