UnitedHealth to Announce Earnings: Expectations from Wall Street
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: Barron's
Earnings Release Impact: UnitedHealth Group's upcoming earnings report could significantly affect the stock's performance.
Stock Performance: The earnings results may either support a recovery in the stock or hinder its progress since the beginning of the year.
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Analyst Views on CI
Wall Street analysts forecast CI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CI is 335.63 USD with a low forecast of 300.00 USD and a high forecast of 378.00 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.
16 Analyst Rating
14 Buy
2 Hold
0 Sell
Strong Buy
Current: 272.380
Low
300.00
Averages
335.63
High
378.00
Current: 272.380
Low
300.00
Averages
335.63
High
378.00
About CI
The Cigna Group is a global health company. The Company has two growth platforms: Evernorth Health Services and Cigna Healthcare. Evernorth Health Services includes its Pharmacy Benefit Services and Specialty and Care Services operating segments, which provide independent and coordinated health solutions and capabilities to enable the healthcare system to work better and help people live richer, healthier lives. Cigna Healthcare includes the U.S. Healthcare and International Health operating segments, which provide comprehensive medical plan services and coordinated solutions to clients and customers. Its Other Operations include corporate-owned life insurance (COLI), the Company's run-off operations and other non-strategic businesses. Specialty and Care Services provides specialty drugs for the treatment of complex and rare diseases, specialty distribution of pharmaceuticals and medical supplies, and clinical programs to help its clients.
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.
Trump Administration's Medicare Proposal Shocks Healthcare Stocks
- Payment Increase Proposal: The Centers for Medicare and Medicaid Services proposed a mere 0.09% net increase in Medicare Advantage payments for 2027, significantly below the anticipated 4% to 6%, resulting in a $90 billion market value loss for the healthcare sector, highlighting the substantial impact of policy uncertainty on market dynamics.
- Earnings Risk Heightened: Analysts warn that if the proposed rates are finalized without adjustments, insurers could see a 15% to 20% decrease in earnings due to the disconnect between rising medical costs and flat funding, exacerbating profitability pressures within the industry.
- Bleak Industry Outlook: Although final rates are expected in April and historical trends suggest potential improvements, analysts predict the healthcare sector may enter a stagnation period of one to two years where earnings fail to expand as previously hoped, negatively affecting investor sentiment.
- Operational Improvements Overlooked: Despite UnitedHealth reporting quarterly improvements in profitability, the headline risk from the payment proposal continues to overshadow operational gains, with analysts noting that while progress is being made, significant recovery challenges remain.
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UnitedHealth Group Shares Plunge Nearly 20% After Weak Earnings
- Earnings Decline: UnitedHealth Group's Q4 results revealed a significant drop in operational earnings alongside hefty restructuring charges, leading to a cautious revenue guidance of $439 billion for 2026, down from $447.6 billion in 2025.
- Surge in Trading Volume: The stock saw a trading volume of 65.3 million shares, which is over 640% higher than its three-month average of 7.5 million shares, indicating a strong market reaction to the disappointing earnings report.
- Industry Impact: The healthcare sector faced pressure as the government announced plans to limit increases to federal Medicare Advantage plans, causing peers like Elevance Health and Cigna Group to drop 14.33% and 3.68%, respectively.
- Resetting Market Expectations: Investors are recalibrating their expectations for health insurance stocks, as UnitedHealth's multiple challenges may continue to weigh on the sector, particularly with ongoing pressures from Medicare.
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