UnitedHealth extends climb to 6.5%, leading S&P 500 gainers

UnitedHealth extends climb to 6.5%, leading S&P 500 gainers

UnitedHealth Group (UNH) has continued its upward trajectory, ending the recent trading session at $320.37, marking a 6.5% increase from the previous day's closing price. This performance outpaced the S&P 500's gain of 0.21%, the Dow's 0.25% increase, and the Nasdaq's 0.45% rise. Over the past month, UNH has gained 25.71%, outpacing the Medical sector's 5.47% and the S&P 500's 3.07% .

Investors are eagerly anticipating UnitedHealth's upcoming earnings release, expected to report an EPS of $2.87, a 59.86% decline from the same quarter last year. Revenue is forecasted to reach $113.54 billion, a 12.61% increase from the prior-year quarter. For the full year, analysts anticipate earnings of $16.21 per share and revenue of $448.87 billion, representing changes of -41.4% and +12.14% respectively from last year .

TD Cowen has maintained its Hold rating and $275.00 price target on UNH, noting that the stock appears undervalued with a P/E ratio of 13.78 and strong financial health scores. UnitedHealth's preliminary Medicare Advantage Star ratings data, which shows 78% of its membership expected to be in 4+ Star plans for payment year 2027, is consistent with its historical performance .

The Zacks Rank for UnitedHealth Group is currently at #5 (Strong Sell), indicating a potential for stock price movement based on recent estimate changes. The Forward P/E ratio for UNH is 19.46, trading at a premium to the industry average of 17.67. The PEG ratio is 2.04, higher than the industry average of 1.18 .

UnitedHealth's recent reaffirmation of its 2025 earnings outlook, including the effects of its Amedisys acquisition, has provided additional insights into the company's financial health. The acquisition is expected to have a modest dilutive effect on adjusted earnings per share due to financing and integration costs. Additionally, concerns have been raised by two Democratic senators about UnitedHealth's loan collection practices following a cyberattack in February 2024 .

Investors should closely monitor these developments and the upcoming earnings release to gauge UnitedHealth Group's performance and future prospects.

References:
https://finance.yahoo.com/news/why-unitedhealth-group-unh-outpaced-233308149.html
https://www.investing.com/news/analyst-ratings/unitedhealth-stock-holds-steady-as-td-cowen-maintains-275-price-target-93CH-4231570