Why United Therapeutics (UTHR) is a Must-Watch Value Stock in 2025

In the ever-evolving landscape of healthcare investing, United Therapeutics (UTHR) has emerged as a compelling candidate for value-oriented investors. With a Zacks Rank of #2 (Buy) and robust Style Scores, the company's financial profile aligns with key metrics that historically signal strong investment potential. This analysis delves into UTHR's valuation metrics, earnings trajectory, and strategic positioning to underscore why it deserves a prominent place in 2025 watchlists.

Zacks Rank #2 (Buy): A Signal of Strong Momentum

According to Zacks Investment Research, United Therapeutics holds a Zacks Rank of #2 (Buy) as of December 2025. This rating reflects the company's consistent outperformance relative to market expectations, driven by upward revisions in earnings forecasts and strong momentum in its core therapeutic segments. Analysts have raised their fiscal 2025 earnings estimate for UTHR by $0.37 to $26.93 per share over the past 60 days, a trend that underscores growing confidence in its ability to deliver value.

Attractive Valuation: Value and VGM Scores in Focus

UTHR's investment appeal is further reinforced by its Zacks Style Scores. The company holds a Value Style Score of B, indicating an attractive forward P/E ratio of 18.67, which is significantly lower than the Medical - Drugs industry average of 19.34X according to Zacks data. This suggests UTHR is undervalued relative to its peers, offering a margin of safety for investors. Additionally, its VGM (Value-Growth-Momentum) Score of B highlights a balanced combination of valuation, earnings growth, and price momentum. These scores position UTHR as a hybrid opportunity, appealing to both value and growth investors.

Valuation Ratios: P/E and PEG in Context

While UTHR's forward P/E of 18.67 appears reasonable, its trailing twelve-month (TTM) P/E of 19.34X and PEG ratio of 5.21 according to Zacks data warrant closer scrutiny. The elevated PEG ratio-well above the industry average of 1.15-indicates that the market is pricing in aggressive future growth expectations. However, this premium is justified by UTHR's projected earnings growth of 9.3% for fiscal 2025 and its long-term revenue guidance of a $4 billion annual run rate by 2027 according to SimplyWall St. For investors willing to bet on its innovation pipeline and market expansion, the current valuation appears justified.

Earnings Momentum and Product Performance

UTHR's third-quarter 2025 results provide further validation of its growth narrative. Total revenues surged to $799.5 million, a 7% year-over-year increase, driven by a 22% rise in sales of Tyvaso DPI to a record $336.2 million. This product's strong performance, coupled with a 32.13% increase in UTHR's P/E ratio compared to its 12-month average according to Public.com, signals durable demand for its therapies. Moreover, the company's average earnings surprise of +1.3% highlights its ability to consistently exceed expectations, a critical factor for sustaining investor confidence.

Strategic Positioning and Analyst Consensus

Beyond financial metrics, UTHR's strategic focus on addressing unmet medical needs in pulmonary and critical care positions it for long-term growth. Its pipeline of innovative therapies, combined with a disciplined approach to R&D and commercialization, reduces downside risk while amplifying upside potential. Analysts' upward revisions to earnings estimates and the Zacks Consensus Estimate of $26.93 per share for fiscal 2025 according to Zacks data further validate this outlook.

Conclusion: A Compelling Case for 2025

United Therapeutics' Zacks Rank #2 (Buy), coupled with its favorable Value and VGM Scores, paints a picture of a company poised for both valuation-driven and earnings-driven growth. While its PEG ratio suggests a premium valuation, the underlying fundamentals-robust product performance, strong earnings momentum, and a clear long-term growth trajectory-justify this premium. For investors seeking a value stock with the potential to outperform in 2025, UTHR offers a compelling risk-reward profile.