What Wall Street Analysts Think of UnitedHealth's Stock Ahead of Earnings

As UnitedHealth Group Inc. (UNH) prepares to release its fourth-quarter and full-year earnings on Thursday, Jan. 16, investors are eager to know what Wall Street analysts think of the stock's prospects. The consensus among analysts is overwhelmingly bullish, with 22 out of 24 rating the stock as a "strong buy" and the remaining two rating it as a "buy." The average price target is $640.16, representing a roughly 17% premium to current levels. However, the assassination of CEO Brian Thompson on Dec. 4, 2024, has had a significant impact on the stock's performance and analysts' assessments.

Prior to Thompson's assassination, UNH stock hit a record high of $630.73 on Nov. 11, 2024. However, after the event, the stock experienced an extended slide, with analysts now forecasting a 4.4% increase to $543.83 as of Jan. 14, 2025. Despite the recent pullback, analysts remain bullish on UNH, with the average 12-month price target of $615.33 representing a 1.64% upside from the current stock price. The options pits are pricing in a bigger 6.9% move, indicating that analysts expect a more significant reaction to the earnings report.

Leading up to the event, analysts are wholeheartedly bullish. Despite the recent pullback, 22 of the 24 analysts in coverage carry a "strong buy" rating, while the remaining two say "buy." The 12-month consensus price target of $640.16 is a roughly 17% premium to current levels. UBS Cuts Price Target on UNH to $650 From $680, Maintains Buy Rating, and Truist Securities Adjusts Price Target on UNH to $625 From $640, Maintains Buy Rating, are two recent examples of analysts adjusting their price targets lower while maintaining their bullish stance.

UNH's earnings are expected to grow at an exceptional rate of 31.71% per year, outpacing the US Healthcare Plans industry average of 28.98% and the US market average of 18.85%. The company's revenue is forecast to grow at a rate of 6.27% per year, which is also faster than the industry average of 5.71% but slower than the US market average of 9.86%. UNH's return on equity (ROE) is forecast to be 40.46%, higher than the industry average of 34.32% and the market average of 49.42%. The company's return on assets (ROA) is forecast to be 12.64%, higher than the industry average of 10.79%.

UNH's strong earnings growth, combined with its high ROE and ROA, has led analysts to forecast an efficient return on equity for the company. UNH's earnings are expected to grow faster than both the industry average and the US market average, indicating that analysts have a positive outlook on the company's earnings and revenue growth prospects compared to the industry average.

UNH's stock price has been volatile in recent months, but analysts remain bullish on the stock's long-term prospects. The assassination of CEO Brian Thompson has had a significant impact on the stock's performance, but analysts expect the company to rebound in the long term. The consensus price target of $640.16 represents a roughly 17% premium to current levels, indicating that analysts expect the stock to perform well in the near future.

In conclusion, Wall Street analysts are overwhelmingly bullish on UnitedHealth Group Inc. (UNH) ahead of the company's fourth-quarter and full-year earnings release on Thursday, Jan. 16. Despite the recent pullback in the stock's price following the assassination of CEO Brian Thompson, analysts remain optimistic about the company's long-term prospects. UNH's strong earnings growth, high return on equity and assets, and positive outlook on earnings and revenue growth prospects have led analysts to forecast an efficient return on equity for the company. The consensus price target of $640.16 represents a roughly 17% premium to current levels, indicating that analysts expect the stock to perform well in the near future. Investors should pay close attention to UNH's earnings report and the company's guidance for the upcoming year.