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UnitedHealth Group Inc. (NYSE:UNH) is gearing up to release its fourth quarter earnings report, and investors are watching closely. Stephanie Link, CIO at Hightower Advisors LLC, has dubbed the managed care giant the “number one company on sale” despite potential near-term earnings pressure.

‘They’re Probably Gonna Miss’ Q4 Earnings Expectations

With estimated earnings per share (EPS) of $6.73 and revenue projections around $101.75 billion according to Benzinga Pro data, UnitedHealth faces scrutiny over high utilization rates that could dent its profit margins.

On earnings, “they're probably gonna miss...because utilization rates are so strong, so high, and it hurts their cost,” Link remarked during CNBC's Halftime Report.

However, she sees this as a temporary hiccup, not a long-term trend.

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From Beat-And-Raise To Strategic Patience

UnitedHealth, long celebrated for its consistent earnings beats, hasn't seen much stock movement in the past year, but that hasn’t dampened Link’s enthusiasm. “They have a gem with Optum,” she said, referring to the segment responsible for 24% of the company's revenue and 12% of operating profits.

Ongoing M&A activity is bolstering Optum's growth trajectory, even as the broader healthcare sector struggles to find favor with investors.

Chart created using Benzinga Pro

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Technically, UnitedHealth shares are experiencing bullish buying pressure, with the stock trading above its eight, 20 and 200-day simple moving averages (SMAs).

At $543.74 per share, the price positions UNH stock as a bullish signal across these metrics, although its moving average convergence/divergence (MACD) indicator of a negative 6.15 suggests caution. Meanwhile, UNH stock’s relative strength index (RSI) of 56.86 signals moderate strength but room for additional upward movement.

A Buying Opportunity In The Making?

Historically trading at a premium valuation, UnitedHealth now sits at 17 times earnings, compared to its typical 21 times multiple. “When I owned it, it was trading at something like 25 times, and every quarter was a beat and raise,” Link noted. Despite the temporary pressure, she believes the stock’s visibility will only improve post-earnings.