UnitedHealth Stock Slumps After Disappointing Results; Key Price Levels to Watch

UnitedHealth Group (UNH) shares fell 6% to $510.59 on Thursday, January 17, 2025, following the release of its fourth-quarter results. The company reported adjusted earnings per share (EPS) of $6.81, up 10.6% year over year, but revenue growth of 6.8% to $100.81 billion missed analysts' estimates. UnitedHealth's medical cost ratio (MCR) increased to 85.5% in 2024, driven by Medicare funding reductions and Medicaid redeterminations. Despite the higher medical costs, UnitedHealth maintained its 2025 outlook, including revenues of $450 billion to $455 billion, net earnings of $28.15 to $28.65 per share, adjusted net earnings of $29.50 to $30.00 per share, and cash flow from operations of $32 billion to $33 billion.

Analysts have provided a range of price targets for UnitedHealth, with an average target of $631.94, a high estimate of $675.00, and a low estimate of $595.00. This upward trend suggests that analysts remain optimistic about the company's future prospects. However, UnitedHealth's stock has been trading below its 200-day moving average, and it has encountered selling pressure near this level. Additionally, the stock has experienced several failed attempts by bulls to close above the 200-day moving average, indicating a potential downtrend.

Investors should keep an eye on the following price levels as UnitedHealth's stock continues to slump:

1. Support Levels: The $500 level has been a significant support level for UnitedHealth's stock in the past. If the stock can find support at this level, it could potentially bounce back.
2. Resistance Levels: The $550 level has been a key resistance level for UnitedHealth's stock. If the stock can break above this level, it could indicate a potential trend reversal.
3. Moving Averages: The 50-day and 200-day moving averages have been crucial indicators for UnitedHealth's stock. The stock has been trading below both moving averages, and a break above either could signal a potential trend change.

In conclusion, UnitedHealth's stock has been under pressure following its fourth-quarter results, with higher medical costs and missed revenue expectations weighing on the company's performance. However, analysts remain optimistic about the company's future prospects, and investors should keep an eye on key price levels as the stock continues to slump. By monitoring support and resistance levels, as well as moving averages, investors can make more informed decisions about when to buy or sell UnitedHealth's stock.