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Minnesota-based UnitedHealth Group Incorporated (UNH), with a market cap of $468.7 billion, provides various healthcare products and services, such as health maintenance organizations, point-of-service plans, preferred provider organizations, and managed fee-for-service programs. It is expected to announce its fiscal Q2 earnings for 2024 before the market opens on Tuesday, July 16.
Ahead of the event, analysts expect UnitedHealth to report a profit of $6.68 per share, up 8.8% from $6.14 per share reported in the year-ago quarter. The stock has consistently surpassed Wall Street’s EPS estimates over the past quarters.
Its adjusted earnings for the last reported quarter increased 10.4% year over year to $6.91 per share and surpassed the consensus estimates by 4.2%. UnitedHealth’s solid results were powered by strong growth in Optum and UnitedHealthcare.
For fiscal 2024, analysts expect UnitedHealth to report an EPS of $27.55, up 9.7% from $25.12 in fiscal 2023. Fiscal 2025 EPS is expected to grow 12% annually to $30.85.
UNH stock dipped 3.7% on a YTD basis, significantly underperforming the S&P 500 Index’s ($SPX) 14.6% gains and the S&P 500 Healthcare Sector SPDR’s (XLV) 7.9% returns.
UnitedHealth’s stock price took a hit this year due to a ransomware attack on its subsidiary, Change Healthcare, in February. This cybersecurity breach negatively impacted the company's profitability and reputation. Despite these challenges, UnitedHealth's Q1 results showed annual improvements in both top and bottom lines, surpassing analysts' expectations. Consequently, UNH stock rose 5.2% on April 16 and continued its upward trend in subsequent trading sessions.
However, the consensus opinion on UnitedHealth stock is bullish, with a “Strong Buy” rating overall. Out of the 23 analysts covering the stock, 20 advise a “Strong Buy” rating, two have a “Moderate Buy” rating, and the remaining one suggests a “Hold” rating. Over the past month, one new “Strong Buy” recommendation has been added to the consensus.
The average analyst price target for UnitedHealth is $580, indicating a potential upside of 13.9% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
