Key Takeaways:
- UnitedHealth Group shares fell by 22% after missing analysts' earnings expectations for the first time since 2008.
- Despite the current downtrend, analysts foresee a potential upside of 38.42% based on the average price target.
- GuruFocus estimates suggest a 70.39% potential increase from the current price, highlighting a robust long-term outlook.
UnitedHealth Group (UNH, Financial) experienced a significant decline in its share price, dropping 22% after reporting earnings that fell short of analysts' predictions. For the first time since 2008, the healthcare behemoth stumbled in meeting market expectations, posting adjusted earnings of $7.20 per share, compared to the anticipated $7.29. This announcement prompted the company to also lower its full-year profit guidance, causing ripples among investors.
Wall Street Analysts' Forecast
Despite the recent setback, market analysts remain optimistic about UnitedHealth Group Inc (UNH, Financial). According to the one-year price targets from 25 analysts, the average target price is $571.76. This reflects a broad range of forecasts with a high estimate of $677.00 and a more conservative low estimate of $490.00. If realized, the average target price suggests a potential upside of 38.42% from the current market price of $413.06. For more detailed analyst projections, visit the UnitedHealth Group Inc (UNH) Forecast page.
The consensus recommendation from 29 brokerage firms places UnitedHealth Group Inc (UNH, Financial) at an "Outperform" rating, with an average score of 1.8 on a scale where 1 indicates a Strong Buy and 5 denotes a Sell.
GuruFocus Perspective on GF Value
From a valuation standpoint, GuruFocus provides an optimistic forecast. They estimate the GF Value for UnitedHealth Group Inc (UNH, Financial) to be $703.82 in one year, implying a significant upside of 70.39% from the current price of $413.06. This GF Value represents GuruFocus' calculated fair value of the stock, which takes into account historical trading multiples, business growth history, and future performance predictions. For deeper insights into the company's valuation, more information is available on the UnitedHealth Group Inc (UNH) Summary page.
