$Unitedhealth(UNH.US) UNH rose 2.3%, but the reason for the rise left me with mixed feelings.

Yesterday, UNH rebounded 2.3%, from $287 to $293.

The reason for the rise? The company announced a 2% cap on employee salary increases for 2026, with 0% for poor performers. To put it bluntly—cutting employee pay to protect profits.

Wall Street bought it. But as a long-term shareholder, what I want to say is:

This is not good news, but it is absolutely the right signal.

Faced with three major challenges—MCR soaring to 88.9%, Medicare rates nearly frozen in 2027, and a DOJ investigation—a company with annual revenue of $450 billion didn't choose to give up. Instead, its management is proactively tightening its belt:

Cutting 3 million+ unprofitable members ❌ → Protecting profit margins ✅

Divesting inefficient overseas assets ❌ → Focusing on the core ✅

Compressing labor costs ❌ → Controlling the expense ratio ✅

Think about this set of moves. Doesn't it look like a boxer who got punched, didn't fall down, but is adjusting his stance to fight back?

Current P/E is about 17x, a 10-year low. The market is pricing in "UNH is finished," but everything the company is doing says: I'm getting through this.

Buffett said: "Great managers don't complain when they face difficulties; they figure out a way."

UNH at $293, DCF pessimistic valuation $337, neutral valuation $412. Do you think an industry leader actively sacrificing to survive is worth $337?

Holding 📊 Not investment advice.