Latest news with #UnitedHealthGroup
Yahoo
13 hours 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
18 hours ago
- Business
- Yahoo
Polen Focus Growth Strategy Decided to Exit Its Position in UnitedHealth Group (UNH)
Polen Capital, an investment management company, released its 'Polen Focus Growth Strategy' second quarter 2025 investor letter. A copy of the letter can be downloaded here. The market sentiment shifted in the second quarter, from a sharp decline to a V-shaped recovery. In the second quarter, the strategy returned 9.36% (gross) and 9.15% (net) compared to 17.84% for the Russell 1000 Growth Index and 10.94% for the S&P 500 Index. In addition, please check the fund's top five holdings to know its best picks in 2025. In its second quarter 2025 investor letter, Polen 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. Polen Focus Growth Strategy stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2025 investor letter: "Finally, we exited our remaining small position in UnitedHealth Group Incorporated (NYSE:UNH) (~1%). After years of continuous earnings growth and durability, the consistency we've come to expect from UNH has been fractured. The company reduced its earnings guidance twice recently, as medical costs have exceeded expectations in both the UnitedHealthcare (insurance) and Optum Health (medical practice) segments. 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
19 hours ago
- Business
- Yahoo
Analysts Trim Price Targets but See Long-Term Value in UnitedHealth (UNH)
UnitedHealth Group Inc. (NYSE:UNH) is one of the most oversold S&P 500 stocks so far in 2025. While the stock was down only marginally in 2024, it has declined substantially in 2025, placing it among the top three oversold stocks. The downturn primarily began with a weak quarterly result and a revision of guidance in April 2025, and was further exacerbated by the CEO's stepping down and the suspension of guidance in May. As the company approaches its Q2 2025 earnings results, guidance, and management's growth plan have come under renewed scrutiny. On July 9, Barclays analyst Andrew Mok revised his price target on the company, lowering it from $350 to $337 ahead of the company's Q2 earnings release scheduled for July 29. Despite the adjustment, he maintained a Buy rating on the stock. An older Medicare-eligible consumer smiling happily while receiving healthcare services at a clinic. The lower target reflects a reduction in Mok's earnings per share forecast for 2026. While he hasn't changed his positive view on the company's long-term potential, the revision suggests a more cautious stance on its earnings outlook over the next couple of years. In a similar move, Wolfe Research analyst Justin Lake had also lowered his price target for the shares to $330 from $363, while reiterating his Buy rating on July 10. Lake now pencils in a lower EPS due to headwinds in Medicaid and health insurance exchanges, as well as higher expenses to bring the company on track. UnitedHealth Group Inc. (NYSE:UNH) is a healthcare company that provides health insurance and healthcare solutions in the U.S. and globally under the UnitedHealthcare and Optum brands. 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. READ NEXT: Harvard University Stock Portfolio: Top 10 Stock Picks and . 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
Yahoo
20 hours ago
- Business
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Top Analyst Calls UnitedHealth a 'Top Pick' Ahead of Earnings
July 22 - UnitedHealth Group (NYSE:UNH) has tumbled roughly 42% year?to?date, driven by rising Medicare Advantage costs, a surprise CEO exit, withdrawn guidance and a Department of Justice probe. However, ahead of its July 29 Q2 earnings, Bernstein analyst Lance Wilkes tapped UNH as a 'Top Pick,' saying the pullback creates an attractive entry point. He noted the stock trades at about 13.5 times forward earnings, below its ten?year average. Warning! GuruFocus has detected 4 Warning Sign with UNH. Wilkes cut his 2025 EPS estimate by 10% to reflect reserve strengthening and cost pressures in individual and Medicaid segments, plus a cleanup of OptumHealth risk contracts. Yet he projects earnings per share could double by 2029, implying a 19% compound annual growth rate. The analyst expects cost normalization to begin in Medicaid in Q3 and in Medicare Advantage in early 2026 as utilization patterns stabilize. He also highlighted a hardening pricing environment for government managed?care plans as a margin tailwind. Is UNH Stock a Buy? Based on the one year price targets offered by 24 analysts, the average target price for UnitedHealth Group Inc is $375.46 with a high estimate of $677.00 and a low estimate of $270.00. The average target implies a upside of +33.08% from the current price of $282.14. This article first appeared on GuruFocus. 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
Yahoo
21 hours 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.
