Latest news with #UNH
Yahoo
a day ago
- Business
- Yahoo
UNH Stock is Down 44% in 2025, But This Analyst Still Thinks UnitedHealth is a Top Q2 Earnings Pick
Unitedhealth Group Inc HQ photo-by jetcityimage via iStock Healthcare stocks are typically seen as defensive plays, especially during market uncertainty, but even industry giants aren't immune to volatility. UnitedHealth Group (UNH), once considered a reliable pillar in the managed care space, has suffered a stock decline of more than 44% in 2025. The selloff has been fueled by a mix of rising costs in its Medicare Advantage segment, a surprise CEO exit, and ongoing federal scrutiny into its billing practices. Despite these significant headwinds, Bernstein is bullish on UNH. The brokerage firm recently named UnitedHealth one of its 'Top Picks' ahead of Q2 earnings, pointing to its discounted valuation and the potential for a strong margin recovery in the coming years. Bernstein also sees normalization in Medicaid and Medicare Advantage trends, and is expecting UNH's earnings to double by 2029, at a compound annual growth rate (CAGR) of 19%. More News from Barchart For long-term investors with an eye for value amid chaos, here's why this beaten-down healthcare heavyweight could be at a 'very attractive entry point,' according to Bernstein. About UNH Stock Based in Minnetonka, Minnesota, UnitedHealth Group (UNH) is a diversified healthcare and insurance company operating through two main segments: UnitedHealthcare, which provides health benefits; and Optum, which offers healthcare services and technology. The company boasts a market capitalization of around $255.9 billion. UNH has endured a difficult year, with its stock plunging about 44% year‑to‑date - significantly underperforming the S&P 500 Index ($SPX), which has gained 7.3%. This underperformance has been driven by multiple headwinds, including surging Medicare costs, disappointing earnings, reported Department of Justice probes, a cyberattack, and the CEO's sudden resignation. Following the sharp sell-off, UNH's valuation is 'significantly depressed,' according to Bernstein. Its forward price‑to‑earnings ratio is 13.95x - well below the sector median, and roughly a 40% discount to its own 5-year average earnings premium. Bernstein analyst Lance Wilkes sees this as a prime opportunity to buy UNH stock at a discount. Separately, value investors will note that the stock yields 3.13% at current levels, offering solid income potential.
Yahoo
a day ago
- Business
- Yahoo
UnitedHealth Group (UNH) Traded Down Following Softer Results and Reduced Guidance
Aristotle Atlantic Partners, LLC, an investment advisor, released its 'Focus Growth Strategy' second quarter 2025 investor letter. A copy of the letter can be downloaded here. The U.S. equity market regained its strength in the second quarter, following initial volatility, with the S&P 500 Index rising 10.94%. The Bloomberg U.S. Aggregate Bond Index also surged 1.21% during the quarter. Aristotle Atlantic's Focus Growth strategy returned 17.70% gross of fees (17.67% net of fees) in the quarter, underperforming the Russell 1000 Growth Index's 17.84% total return. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its second quarter 2025 investor letter, Aristotle Atlantic Focus Growth Strategy highlighted stocks such as UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company that operates through UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx segments. The one-month return of UnitedHealth Group Incorporated (NYSE:UNH) was -6.17%, and its shares lost 49.49% of their value over the last 52 weeks. On July 21, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $282.14 per share, with a market capitalization of $255.94 billion. Aristotle Atlantic Focus Growth Strategy stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2025 investor letter: "UnitedHealth Group Incorporated (NYSE:UNH) detracted from relative performance in the second quarter following a surprisingly soft first quarter earnings report and a sizable guidance reduction. The issues were two-fold, including higher utilization inside its group Medicare Advantage offering, which drove a higher medical care ratio. The second issue was a negative new member mix, as several competitors exited the market, and many of the patients who switched to UnitedHealth's offerings had not been actively engaged in their care, resulting in higher acuity levels throughout the quarter. The company believes both issues are fixable in its next rate cycle." A senior healthcare professional giving advice to a patient in a clinic. UnitedHealth Group Incorporated (NYSE:UNH) is in 18th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 139 hedge fund portfolios held UnitedHealth Group Incorporated (NYSE:UNH) at the end of the first quarter, which was 150 in the previous quarter. While we acknowledge the potential of UnitedHealth Group Incorporated (NYSE:UNH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered UnitedHealth Group Incorporated (NYSE:UNH) and shared the list of most undervalued healthcare stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
a day ago
- Business
- Yahoo
Dodge and Cox Increased its Holdings in UnitedHealth Group Incorporated (UNH) Amid Current Challenges
Dodge & Cox Fund, an investment management company, released its 'Dodge and Cox Stock Fund' second quarter 2025 investor letter. A copy of the letter can be downloaded here. The Stock Fund — Class I – returned 3.82% and Class X returned 3.85% in the second quarter vs the S&P 500 Index's 10.9% return and the Russell 1000 Value Index's 3.79% return. In the second quarter, geopolitical uncertainty and rapidly changing economic proposals led to increased volatility in the US markets. In addition, please check the fund's top five holdings to know its best picks in 2025. In its second quarter 2025 investor letter, Dodge and Cox Stock Fund highlighted stocks such as UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company that operates through UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx segments. The one-month return of UnitedHealth Group Incorporated (NYSE:UNH) was -6.17%, and its shares lost 49.49% of their value over the last 52 weeks. On July 21, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $282.14 per share, with a market capitalization of $255.94 billion. Dodge and Cox Stock Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2025 investor letter: "In the second quarter, we continued to add to holdings in the Health Care sector and trim select holdings in Financials, consistent with actions begun in early 2024. We increased the Fund's position in UnitedHealth Group Incorporated (NYSE:UNH), the largest U.S. health insurer, after the company's valuation reached an 11-year low due to disappointing earnings, continued regulatory concerns, and management changes.3 Its Medicare Advantage (MA) business has been especially weak, mirroring trends at the other largest MA participants (Humana and CVS, companies the Fund also owns). Despite the current challenges, we believe UnitedHealth has a strong position across its major markets and MA profitability is likely to recover. We are also optimistic that UnitedHealth's returning CEO Stephen Hemsley (who came out of retirement in May) can help improve operational efficiency and margins." A senior healthcare professional giving advice to a patient in a clinic. UnitedHealth Group Incorporated (NYSE:UNH) is in 18th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 139 hedge fund portfolios held UnitedHealth Group Incorporated (NYSE:UNH) at the end of the first quarter, which was 150 in the previous quarter. While we acknowledge the potential of UnitedHealth Group Incorporated (NYSE:UNH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered UnitedHealth Group Incorporated (NYSE:UNH) and shared the list of most undervalued healthcare stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Business Insider
3 days ago
- Business
- Business Insider
UnitedHealth Stock Collapse Continues: Here's What This Investor Thinks Will Happen Next
UnitedHealth (NYSE:UNH) is coming off another bruising week, with shares down 7% – bringing the 12-month decline to a steep 50% – as a string of PR crises continues to weigh heavily on investor sentiment. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Since the assassination of Brian Thompson, the CEO of its insurance division, in New York last year, the company has faced mounting scrutiny. Investors are increasingly uneasy about UnitedHealth's transparency, while the public has raised sharp concerns over its claims-handling practices. Given the reputational setbacks, investor A.J. Button believes the fallout could soon weigh on the company's bottom line. 'Bad PR can lead to brand damage,' he warns, 'which in turn can lead to policyholders taking their business elsewhere.' That said, Button acknowledges that the company's fundamentals remain relatively strong. UNH still boasts a robust balance sheet and solid profitability metrics, suggesting it has the financial strength to withstand pressure. 'Nevertheless,' Button cautions, 'the issues facing UnitedHealth right now are very real.' One of the most pressing red flags is the company's exceptionally high claim denial rate, reportedly the highest in the sector, according to multiple sources. While not catastrophic in itself, such a pattern could indicate flawed underwriting or strained claims infrastructure – issues that compound the reputational damage and hint at possible internal mismanagement. 'So,' Button adds, 'UnitedHealth has many qualities, good and bad.' On one hand, its financial footing and history of profitability provide a cushion. On the other, cracks are beginning to show: for fiscal 2024, its combined ratio hit 97.2% – right up against the industry's red line. Button argues that, before investors can have full confidence, the company needs to take meaningful action to shore up its underwriting performance. Whether that turnaround is underway remains an open question. UnitedHealth recently reinstated former CEO Stephen Helmsley, following the previous leader's departure. But the move has raised eyebrows, given that Helmsley is a longtime insider who presided over many of the company's earlier challenges. His return doesn't exactly scream transformation. A rebound is still possible – especially if the company takes decisive steps to restore trust and address internal inefficiencies. However, given the scale of its current controversies, Button advises investors to weigh the risks carefully. Even the stock's seemingly low P/E ratio doesn't present a compelling bargain relative to peers in the life and health insurance space. 'When considering a stock like UnitedHealth, with a good track record but an unprecedented new set of risk factors, it pays to be cautious,' the investor summed up. Can UnitedHealth Stock Bounce Back? Button assigns a 'low-conviction' buy rating on UNH shares – a nod to its potential, but with more than a few strings attached. (To watch Button's track record, click here) Wall Street, though, is a bit more upbeat. The stock holds 19 Buy recommendations, 6 Holds, and just 1 Sell, translating to a Moderate Buy consensus rating. With an average price target of $364.96, analysts are eyeing 29% upside from current levels. (See UNH stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
4 days ago
- Business
- Yahoo
UnitedHealth (UNH) Faced a Significant Downturn in Q2. Here's Why
Wedgewood Partners, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, Wedgewood Composite's net return was 7.1% compared to the Standard & Poor's 10.9%, the Russell 1000 Growth Index's 17.8%, and the Russell 1000 Value Index's 3.8% return for the same period. In addition, you can check the fund's best 5 holdings to know its best picks in 2025. In its second quarter 2025 investor letter, Wedgewood Partners highlighted stocks such as UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company that operates through UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx segments. The one-month return of UnitedHealth Group Incorporated (NYSE:UNH) was -4.62%, and its shares lost 49.04% of their value over the last 52 weeks. On July 17, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $288.07 per share, with a market capitalization of $261.32 billion. Wedgewood Partners stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2025 investor letter: "UnitedHealth Group Incorporated (NYSE:UNH) was a leading detractor from performance during the quarter. Medical costs in their key Medicare Advantage business are spiking as the Company uncharacteristically misjudged the morbidity of its newest members. Additionally, there was another rare miss for what we believed was the 'Tiffany' health care operator, which fumbled their execution at Optum Health. This oversight led to the Company pulling their 2025 earnings guidance along with the turnover of key management, including their CEO. We were surprised by the severity of this miss along with the execution missteps, and we decided to liquidate our holdings because the long-term, double-digit growth trajectory of the Company has been thrown into question." A senior healthcare professional giving advice to a patient in a clinic. UnitedHealth Group Incorporated (NYSE:UNH) is in 18th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 139 hedge fund portfolios held UnitedHealth Group Incorporated (NYSE:UNH) at the end of the first quarter, which was 150 in the previous quarter. While we acknowledge the potential of UNH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered UnitedHealth Group Incorporated (NYSE:UNH) and shared Vulcan Value Partners' views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
