UnitedHealth Group (UNH) Faces Earnings Pressure Amid Rising Medical Costs

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3 days ago
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  • UnitedHealth Group's Q1 2025 earnings per share missed expectations, prompting a reduced full-year earnings outlook.
  • Revenue increased significantly, showcasing continued business growth despite challenges.
  • Analysts maintain an "Outperform" rating, with a potential upside based on current valuations.

UnitedHealth Group (UNH, Financial) recently announced its financial results for the first quarter of 2025, revealing an adjusted income of $7.20 per share, slightly below the anticipated $7.29. In light of surging medical expenses, the company has revised its earnings guidance for the year. Despite this, revenue has surged by $9.8 billion, reaching a substantial $109.6 billion. Following these developments, TD Cowen has adjusted its price target for UNH to $520.

Wall Street Analysts Forecast

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According to projections from 25 analysts, UnitedHealth Group Inc (UNH, Financial) is anticipated to reach an average price target of $566.91 within a year. These estimates range from a high of $677.00 to a low of $490.00, suggesting a potential upside of 35.42% from the current stock price of $418.64. Investors seeking further detail on these projections can visit the UnitedHealth Group Inc (UNH) Forecast page.

Brokerage Recommendations

The consensus recommendation from 29 brokerage firms positions UnitedHealth Group Inc (UNH, Financial) with an average rating of 1.9, aligning with an "Outperform" status. This rating scale ranges from 1, indicating a Strong Buy, to 5, representing a Sell, underscoring the overall positive sentiment from analysts.

GF Value Assessment

GuruFocus has estimated a GF Value for UnitedHealth Group Inc (UNH, Financial) at $703.82 within one year. This estimate points to an impressive upside potential of 68.12% from the current stock price of $418.64. The GF Value is a calculated fair value estimate based on the stock’s historical trading multiples, its past business growth, and forward-looking business performance projections. For a comprehensive overview, investors are encouraged to explore 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.