Key Takeaways:
- UnitedHealth Group's stock fell nearly 20% premarket due to a reduced full-year forecast following disappointing Q1 2025 results.
- Despite current setbacks, analysts' consensus indicates potential growth with an upside target up to 21.18%.
- GuruFocus metrics suggest an "Outperform" rating, supported by a GF Value estimate indicating the stock is currently undervalued.
UnitedHealth Group's Q1 2025 Performance: A Closer Look
Shares of UnitedHealth Group (UNH, Financial) experienced a significant decline of nearly 20% in premarket trading. This drop followed the company's announcement to cut its full-year forecast, stemming from first-quarter 2025 results that underperformed expectations. Specifically, UnitedHealth posted earnings per share of $7.20, which fell short by $0.09, and reported revenue of $109.58 billion, missing projections by a notable $2.02 billion.
Analysts' Price Projections
According to 25 analysts, the average one-year price target for UnitedHealth Group Inc (UNH, Financial) is $639.88. This projection suggests a potential upside of 9.37% from its current trading price of $585.04. The estimates range from a low of $518.76 to a high of $703.00. Investors interested in the detailed estimate data can explore further on the UnitedHealth Group Inc (UNH) Forecast page.
Brokerage Recommendations and GF Value Insights
The consensus from 29 brokerage firms positions UnitedHealth Group (UNH, Financial) with an average recommendation of 1.7, attributed as an "Outperform" status. This rating system spans from 1, indicating a Strong Buy, to 5, denoting a Sell.
In line with GuruFocus evaluations, the estimated GF Value for UnitedHealth Group Inc (UNH, Financial) over the next year stands at $708.96. This translates to a projected upside of 21.18% from the current rate of $585.04. The GF Value is derived from historical trading multiples, past business growth, and forward-looking business performance estimates. For an in-depth analysis, the data is accessible via the UnitedHealth Group Inc (UNH) Summary page.
Investors weighing the potential of UnitedHealth Group may find solace in these forecasts, which highlight the possibility of recovery and growth despite the current downturn. The "Outperform" rating, buoyed by a promising GF Value, positions UNH as an intriguing prospect in the healthcare sector.
