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With a market cap of $491.4 billion, UnitedHealth Group Incorporated (UNH) Incorporated is a leading diversified health care company offering a wide range of health benefits and services. Through its UnitedHealthcare and Optum segments, it provides insurance, technology-driven health solutions, and pharmacy care services globally.
Shares of UNH have underperformed the broader market over the past 52 weeks. UNH has risen 1.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 20.5%. However, DVA stock has risen 4.3% on a YTD basis, outpacing SPX's 2.9% YTD gain.
Looking closer, the Minnetonka, Minnesota-based company has slightly outpaced the Health Care Select Sector SPDR Fund's (XLV) 1.1% rise over the past 52 weeks.
UnitedHealth Group's stock fell over 6% on Jan. 16 after reporting Q4 revenue of $100.8 billion, missing the analyst estimate. The company’s medical loss ratio rose to 87.6%, exceeding the expected 86%, while profit margins declined from 5.8% to 5.5%. UnitedHealthcare revenue increased 4.7% to $74.1 billion, and Optum revenue grew 9.4% to $65.1 billion, but cost pressures weighed on overall performance. Concerns over rising medical expenses, government scrutiny of pharmacy benefit managers like OptumRx, and tighter reimbursement policies also contributed to investor caution.
For the current fiscal year, ending in December 2025, analysts expect UNH’s EPS to grow 6.8% year-over-year to $29.54. The company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 24 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 22 “Strong Buy” ratings and two “Moderate Buys.”
On Jan. 7, Truist analyst David MacDonald lowered UnitedHealth’s price target to $610 while maintaining a “Buy" rating, citing a mixed 2025 outlook for Healthcare Services. While demographic trends and value-based care remain favorable, concerns over increased government cost controls create uncertainty for the sector.
As of writing, UNH is trading below the mean price target of $639.21. The Street-high price target of $700 implies a modest potential upside of 32.2% from the current price levels.
