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UnitedHealth Group Incorporated (UNH) is a diversified healthcare leader headquartered in Minnesota. Valued at an impressive market cap of $531.7 billion, it offers an extensive range of health care products and services, including health maintenance organizations, point-of-service plans, preferred provider organizations, and managed fee-for-service programs.
Shares of the healthcare giant have struggled to keep up with the broader market over the past year. While UNH stock has surged 14.7% over this time frame, the S&P 500 Index ($SPX) has rallied by 26.1%. In 2024, the stock rose 9.7%, compared to SPX’s 16.5% return on a YTD basis.
Taking a closer look, UNH has surpassed the iShares U.S. Healthcare Providers ETF (IHF), which has gained 10.5% over the past year and returned 7.8% on a YTD basis.
On Jul. 16, UnitedHealth announced its Q2 earnings report, which led to a 6.5% jump in its stock price. Its topline and bottom line smashed the market’s expectations, and the company updated its full-year 2024 net earnings outlook to $15.95 to $16.40 per share.
For the current fiscal year, ending in December, analysts expect UNH’s EPS to grow 10.2% year over year to $27.69. Moreover, the company’s earnings surprise history is solid, exceeding the consensus estimate in each of the last four quarters.
UnitedHealth stock has a consensus “Strong Buy” rating overall. Out of 24 analysts covering the stock, 22 recommend a "Strong Buy," and two suggest a "Moderate Buy."
The consensus rating is slightly more bullish than two months ago, with 20 analysts suggesting a “Strong Buy.”
On Jul. 18, UBS Group AG (UBS) analyst Kevin Caliendo raised the price target for UnitedHealth from $640 to $680 while maintaining a "Buy" rating.
The mean price target of $621.13 suggests a 7.5% premium from UNH's current price levels.
On the date of publication, Kritika Sarmah 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.
