The Dow sky rockets nearly 11% and UNH stays at 54. Why is UNH trading at a Price / Earnings of only 10.8, when the S&P 500 is trading at a current average of 18 with an historic average of 15.5. Why is UNH one of top 10 of underpriced stocks? Maybe UNH is carrying too much debt. No. It is 59% of equity and UNH assets have increased 19%. Is UNH undervalued because of decreasing revenue? No UNH revenue increased 9% last year and 11% last quarter. Cash flow? UNH net operating revenue increased 505% to $1.68 Billion last quarter. Dividends? They are 1.5%. Interest on bank savings is close to zero. Downgrades? No 4 upgrades and no downgrades since 2010. Bad rating? No, 9 Strong Buys, 8 Buys, 3 Holds, No Under Performs, and no Sell recommendations. Maybe it is because investors fear that UNH will be stuck with the cost from Medicare cuts or the start of ObamaCare. No. Cuts to Medicare providers will also be passed on to UNH providers. Other Insurance costs are passed through to employer, government, or employee payers. For at risk coverage, UNH has always been right behind Kiaser in capitation systems, as an alternative to fee for service, calling their program “Medical Homes.” ObamaCare will allow UNH to compete for 30 million more enrollees in insurance exchanges. UNH is the largest and most diverse health care company, with the most providers, who usually get their referrals through UNH Care managers according to their effectiveness. Failure to grow? No, UNH has had steady growth for decades. UNH gross profit has grown to 30.3 Billion in 2012, up from 25.3 Billon 2 years ago. UNH also got the huge Tricare contract and took their pharmacy benefit company internal. UNH’s purchase of Brazil’s largest health care, hospital and provider company is seen as adding as much 40% to their profit in the future. Risk or Bad reputation? No, UNH is Fortune’s most admired company in Health Care. What am I missing?