UnitedHealth (UNH) Stock Plummets After Earnings Miss

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5 days ago
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  • UnitedHealth (UNH, Financial) shares have dropped over 22%, causing ripples in the health insurance sector.
  • Analysts see a potential upside of over 36% based on current price targets.
  • GuruFocus suggests a significant growth potential with a GF Value estimate offering a 56.59% upside.

UnitedHealth (UNH) recently experienced a significant 22% decrease in share value, triggered by an unforeseen earnings shortfall. This unexpected turn of events has not only impacted UnitedHealth but also sent tremors through the health insurance sector, affecting companies like Humana (HUM) and Molina Healthcare (MOH) and contributing to a broader market decline.

Wall Street Analysts' Insights

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A collective analysis of one-year price targets from 25 experienced analysts suggests an average target price of $620.16 for UnitedHealth Group Inc (UNH, Financial). With projections ranging from a high of $703.00 to a low of $513.00, this average target price indicates a promising upside of 36.57% from the current stock price of $454.11. Investors can explore more detailed estimates on the UnitedHealth Group Inc (UNH) Forecast page.

Current brokerage analyses show UnitedHealth Group Inc (UNH, Financial) holding an average recommendation of 1.7, aligning with an "Outperform" status. This consensus among 29 brokerage firms is based on a rating scale from 1 to 5, with 1 indicating a Strong Buy and 5 a Sell. Such a rating underscores the stock's favorable positioning among analysts.

Unlocking GF Value Potential

According to GuruFocus calculations, UnitedHealth Group Inc (UNH, Financial) holds an estimated GF Value of $711.11 within the coming year. This valuation implies an upside of 56.59% from its current price of $454.11. The GF Value is a robust measure, assessing the fair trading value of the stock based on historical trading multiples, past business growth, and anticipated future performance. Investors seeking comprehensive insights can visit the UnitedHealth Group Inc (UNH) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.