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UnitedHealth Group Incorporated (UNH), headquartered in Minnetonka, Minnesota, owns and manages organized health systems. With a market cap of $556.1 billion, the company provides employers products and resources to plan and administer employee benefit programs, serving customers worldwide.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and UNH definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the healthcare plans industry. The health insurance giant provides a wide range of healthcare products and services, such as health maintenance organizations, point-of-service plans, preferred provider organizations, and managed fee-for-service programs, making it the largest insurance provider in the U.S.
UNH touched its 52-week high of $607.94 in the last trading session. Over the past three months, UNH stock gained 19.5%, significantly outperforming the Nasdaq Composite’s ($NASX) 1.4% gains during the same time frame.
In the longer term, shares of UNH rose 14.8% on a YTD basis and climbed 26.9% over the past 52 weeks, outperforming NASX’s YTD gains of 13.8% and 21.8% returns over the last year.
To confirm the bullish trend, UNH has traded above its 50-day and 200-day moving averages since mid-July.
UNH has shown strong performance driven by its diversified business, offering services ranging from insurance to specialty pharmacy solutions. Despite recent challenges from a cyberattack, the company set aside over $9 billion to address the issue. UNH's strong financial position allowed it to handle these obligations and maintain its dividend payments. The company's Medicare Advantage business remains a growth driver, with a leading market share of 28%. Additionally, its Optum business continues to thrive, supported by growth in healthcare services and pharmacy offerings.
On Jul. 16, UNH shares closed up more than 6% after reporting its Q2 earnings results. Its adjusted EPS of $6.80 topped Wall Street expectations of $6.65. The company’s revenue amounted to $98.9 billion, topping Wall Street forecasts of $98.7 billion.
UnitedHealth’s rival, Elevance Health, Inc. (ELV) shares lagged behind the stock, with 23.7% gains over the past 52 weeks. However, in 2024, ELV outperformed the stock with 16.1% returns.
Wall Street analysts are highly bullish on UNH’s prospects. The stock has a consensus “Strong Buy” rating from the 24 analysts covering it, and the mean price target of $622.77 suggests a potential upside of 3.1% from current price levels.
On the date of publication, Neha Panjwani 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.
