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Minnesota-based UnitedHealth Group Incorporated (UNH) is a leading global healthcare industry player valued at $465.25 billion by market cap. Operating through both healthcare services and insurance segments, UNH commands a comprehensive presence across the entire value chain, from providing medical care and health benefits to offering innovative health technology solutions. The company competes vigorously with other healthcare giants, including The Cigna Group (CI), distinguished by its specialized health services and customer-focused care management.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and UNH fits right into that category. Its market cap exceeds this threshold, reflecting its substantial size, stability, and influence in the healthcare sector. The healthcare giant has focused on innovation and expansion through strategic acquisitions and investments in advanced health technology and integrated care services over the past years.
Shares of UNH are currently trading 8.9% below their 52-week high of $554.70, which they hit on Dec. 1. However, UNH has gained 4.9% over the past three months, outshining the S&P 500 Index’s ($SPX) 3.1% returns over the same time frame.
Over the longer term, UNH has underperformed, with a decline of 4% on a YTD basis but a modest 1.2% increase over the past 52 weeks. In comparison, the S&P 500 has gained 10.9% in 2024 and witnessed a significant 23.6% rally over the past year.
To confirm the recent bullish price trend, UNH has been trading above its 50-day moving average since the end of May.
UnitedHealth Group's recent outperformance can be attributed to its robust Q1 results released on Apr. 16. On the day of their earnings release, shares of UNH surged by 5.2%. Revenue of $99.8 billion increased 8.6% year over year and surpassed the consensus estimates. Despite a GAAP net loss of $1.22 billion due to a cyberattack on Change Healthcare, adjusted earnings per share were $6.91, exceeding analysts' expectations.
Highlighting the contrast in performance, UNH's competitor, Cigna, has significantly outperformed both UNH and the broader market indexes. CI has gained 31.1% over the last 52 weeks and is up 12.6% on a YTD basis.
Given its robust recent price performance, analysts are optimistic about UNH's prospects. The stock has a consensus rating of "Strong Buy" from 22 analysts in coverage. The mean price target of $574.14 reflects an 13.6% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
