UnitedHealth Group Today
UnitedHealth Group
- 52 week range
- $436.38
▼
$630.73
- Dividend yield
- 1.64%
- P/E ratio
- 33.29
- Price target
- $626.79
UnitedHealth Group New York Stock Exchange: United Nations The stock price is falling from last year’s highs, presenting a good opportunity for investors. Although revenue growth expectations have diminished, the company continues to grow, cost controls have offset the weakness, and return on capital has remained strong.
Stock price action may moderate in the first quarter of 2025, but long-term trends remain sound for these and other healthcare services companies. The share price of this premium healthcare operator is trending higher in the long term and is likely to reach new highs before the end of the year.
The mixed results highlight UnitedHealth’s operational quality
UnitedHealth reported a mixed quarter, with revenue falling short of consensus estimates for the first time in years. However, the small 80 basis point loss relates to a significantly lower column, with worse marginal numbers expected. The important detail is that revenues grew approximately 7% year over year due to strength across all segments and revenue streams driven by increased patient volume. UnitedHealth’s core business grew 4.6%, led by a 9.4% gain at Optum. Last year’s hack is still affecting Optum, but the damage is essentially in the rearview mirror and fading quickly. In terms of revenue streams, the company reported growth in premiums, products and services, led by double-digit product gains.
UnitedHealth Group MarketRank™ Stock Analysis
- Total MarketRank™
- Percentage 99
- Analyst evaluation
- He buys
- Upside/Downside
- 21.0% up
- Short interest level
- correct
- Earnings power
- strong
- Environmental outcome
- -0.33
- News feelings
- 0.77
- Insider trading
- nothing
- project. Earnings growth
- 7.93%
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Margin news is also mixed but favorable for shareholders. Margin contracted due to higher medical costs, but effective cost controls aided by AI-based insights made up for it. The net result was a 6% decline in earnings from operations, lower cash flow, and $6.81 in adjusted earnings, which was still better than expected. Adjusted EPS outperformed by 100 basis points despite the weak top line, and margin performance is expected to remain strong. The company reiterated that guidance was set for December 2024, below analyst expectations but another year of growth and strong cash flow.
The cash flow and balance quarter shows neutral cash flow due to investment and return of capital. The result is that the balance sheet remains healthy, with ample cash and a stable cash position despite increasing short- and long-term receivables and assets. Responsibility is also high. However, this is not enough to offset the increase in assets, leaving equity up 4%. Dividends and buybacks are significant, with the stock yielding more than 1.55% in early January, and buybacks reducing the diluted number by almost a full percentage in 2024.
Analyst trends support UN price movements
Analyst trends are positive for market sentiment, including increased coverage and a high conviction rating of Buy. MarketBeat tracks 22 analysts with current valuations in early 2025; 21 or 95% of them rate the stock as a buy and only one as a hold. Also worth noting is the price target revision trend, with a consensus estimate lift of 8% in 12 months and new targets leading to the high-end range. Consensus assumes this stock will retest its highs later this year, a 20% gain from critical support targets, while the upper range adds 1,000 basis points.
Price movement at UNH is unclear and suggests that weakness may continue into the first quarter. The price action is also showing strong support at critical levels, indicating that the uptrend is still in place. These levels correspond to the 150-week moving average and support levels in 2023 and 2024. It is likely to be a strong level and is unlikely to be broken now. If so, this market could move lower to retest the bottom of its trading range near $445 before bouncing back. In this scenario, there is a risk that UN stock will fall into a range cap near $555. The bottom of the range should be strong due to high institutional interest and buying trends, but the ceiling could be just as strong. Institutional activity has been bullish in 2024 but shows selling when the stock price rises and support when it falls.
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