Based on Bernstein, UnitedHealth is worth buying since it still sells at a low valuation based on a superb earnings report. Analyst Lance Wilkes raised medical health insurance stock prices to outperform market performance and raised his price goal by $8 to $603. His latest goal is that the stock could gain 24.6% over the subsequent 12 months from Monday’s close. “We consider UNH is a best-in-class MCO and VBC company and the present valuation offers a novel opportunity to buy a portion of the enterprise with a big runway in front of it at a really attractive valuation,” he said in Note to Customers on Tuesday. Wilkes’ move marks a reversal of last 12 months’s cut, which was linked to concerns over overvaluation, 2023 utilization and pressure on rates of interest. Now, he said those fears are within the share price, and the valuation has fallen – from about 1.3 times earnings to 0.9 times earnings – to a level that underestimates long-term growth opportunities. UnitedHealth beat Wall Street expectations on each lines for the second quarter on Friday. The corporate also said it was increasing the lower end of its targeted range where adjusted earnings for the complete 12 months should appear. “Overall, it was a solid print,” he said. “We consider expectations were negative with rising medical costs and the UNH line’s print on the MLR, their comments on stable costs and the guide’s increase led to a stock close of seven% on Friday.” Despite a rally in profits, the member of the Dow Jones Industrial Average continues to fall almost 9% in 2023, despite a gain within the broader market. Shares were up 0.6% before the bell on Tuesday. Looking ahead, Wilkes said UnitedHealth has the potential to tighten prices in 2024 and “attractive” long-term growth with value-based healthcare and government-managed care, in addition to innovation company Optum. The low relative valuation also tells Wilkes that this is a superb time to purchase. UnitedHealth trades in multiples of 0.9 of the S&P 500, near the Medicare for All low of 0.85. That is also removed from the 2022 high of 1.4, which he called “stretched.” UNH YTD Mountain UnitedHealth Drop in 2023 – CNBC’s Michael Bloom contributed to this report.