UnitedHealth Group Leads Dow, Cisco Systems Lags

UnitedHealth Group tops the Dow Jones Industrial Average in early trading, up 11.9%, while Cisco Systems is down 2.5%. Year to date, UnitedHealth Group has lost 39.9% of its value, and Cisco Systems has gained 14.1%. Other movers include MMM, down 2.0%, and Salesforce, up 2.7%.

UnitedHealth Group (UNH) and Cisco Systems (CSCO) have been notable movers in the Dow Jones Industrial Average (DJIA) on July 2, 2025. UnitedHealth Group, the largest health insurer in the United States, saw its stock price surge by 11.9% in early trading, while Cisco Systems experienced a decline of 2.5%. These movements highlight the contrasting fortunes of the two companies, with UnitedHealth Group posting a significant recovery after a challenging period, and Cisco Systems maintaining its momentum despite a slight dip.

UnitedHealth Group: A Bounce Back

UnitedHealth Group's stock price has been volatile over the past year. The company has faced several headwinds, including rising Medicare costs, billing practice investigations, and a change in leadership. However, the stock has shown signs of recovery, with a 11.9% increase in early trading on July 2. This rebound can be attributed to several factors, including a significant stake purchased by Berkshire Hathaway, Warren Buffett's holding company, in the second quarter of 2025 [1].

Berkshire Hathaway bought more than 5 million UNH shares, accounting for 0.6% of its equity portfolio, at a market value of $1.6 billion. The purchase was made despite the company's recent struggles, with the stock down 52% over the past year and 46% year-to-date through April 14. The forward price-to-earnings (P/E) ratio of UnitedHealth Group is currently at 16.5, below both its five-year average of 19.2 and the S&P 500's forward P/E ratio of 23.3. Additionally, the company's dividend yield of 3.3% is more than double the S&P 500's yield [1].

Cisco Systems: Sustained Growth

Cisco Systems, on the other hand, has been performing well in the technology sector. The company reported strong fourth-quarter earnings and full-year results for fiscal 2025, with revenue up 8% year-over-year to $14.7 billion and earnings per share (EPS) increasing 31% on a GAAP basis to $0.71 [2]. The company's AI infrastructure orders exceeded $800 million in fiscal 2025, more than doubling its original target of $1 billion. Cisco's robust demand for its technologies across all geographies has contributed to its sustained growth, with the stock gaining 14.1% year-to-date through July 2.

Other Market Movers

Other notable movers in the DJIA on July 2 include MMM, which experienced a 2.0% decline, and Salesforce, which saw a 2.7% increase. These fluctuations highlight the varied performance of different sectors and companies within the market.

References

[1] Kiplinger. "Berkshire Buys the Dip on UnitedHealth Group Stock: Should You?" https://www.kiplinger.com/investing/stocks/berkshire-buys-the-dip-on-unitedhealth-group-stock-should-you

[2] Cisco. "Cisco Reports Fourth-Quarter Earnings." https://newsroom.cisco.com/c/r/newsroom/en/us/a/y2025/m08/cisco-reports-fourth-quarter-earnings.html