UnitedHealth Group Faces Diverging Ratings Ahead of Q4 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Diverging Ratings: Ahead of Q4 earnings, Seeking Alpha's Quant model maintains a 'Hold' rating for UnitedHealth Group (UNH), citing a concerning EPS forward growth forecast of -9%, significantly underperforming the sector's average growth of 9.4%.
- Poor Stock Performance: UNH shares have plummeted 33.3% over the past year, making it the worst performer in the Dow 30, and are down 8.6% in premarket trading on Tuesday, reflecting market skepticism about its future performance.
- Margin Pressure: Analysts highlight that UNH's operating margins are at their lowest in 25 years, primarily due to easing case denial rates, which could further compress profit margins and heighten investor risk concerns.
- Wall Street Optimism: Despite challenges, Wall Street maintains a 'Buy' recommendation for UNH with an average price target of $393.77, suggesting nearly a 12% upside, while Q4 EPS is expected at $2.11 (-69.07% Y/Y) with revenue projected to grow 12.8% to $113.73B.
Analyst Views on UNH
Wall Street analysts forecast UNH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UNH is 397.82 USD with a low forecast of 330.00 USD and a high forecast of 444.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 356.260
Low
330.00
Averages
397.82
High
444.00
Current: 356.260
Low
330.00
Averages
397.82
High
444.00
About UNH
UnitedHealth Group Incorporated is a healthcare and well-being company. Its segments include Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare, which includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement and UnitedHealthcare Community & State. Optum Health offers comprehensive and patient-centered care, addressing the physical, mental, social, and financial well-being. Optum Health delivers primary, specialty and surgical care; helps patients and providers navigate and address complex, chronic and behavioral health needs. Optum Insight connects the healthcare system with services, analytics and platforms that make clinical, administrative and financial processes simpler and more efficient for all participants in the healthcare system. Optum Rx offers a range of pharmacy care services through retail pharmacies, through home delivery, specialty and community health pharmacies and the provision of in-home and community-based infusion services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
