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UnitedHealth Group Incorporated (UNH), headquartered in Minnetonka, Minnesota, owns and manages organized health systems. With a market cap of $535.5 billion, the company provides employers products and resources to plan and administer employee benefit programs serving customers worldwide. The health insurance giant is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Tuesday, Oct. 15.
Ahead of the event, analysts expect UNH to report a profit of $7.05 per share on a diluted basis, up 7.5% from $6.56 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect UNH to report EPS of $27.69, up 10.2% from $25.12 in fiscal 2023. Its EPS is expected to rise 12.7% year over year to $31.21 in fiscal 2025.
UNH stock has underperformed the S&P 500’s ($SPX) 34.4% gains over the past 52 weeks, with shares up 16% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) 19.6% gains over the same time frame.
UNH's underperformance can be linked to the recent lawsuit filed by the FTC against the three largest PBMs in the country, including CVS Health Corporation’s (CVS) Caremark Rx, The Cigna Group’s (CI) Express Scripts, and UNH's OptumRx. This legal action and losses from the cyber-attack on its Change Healthcare division has had a negative impact on the stock.
On Jul. 16, UNH shares closed up more than 6% after reporting its Q2 results. Its adjusted EPS of $6.80 topped Wall Street expectations of $6.65. The company’s revenue was $98.9 billion, topping Wall Street forecasts of $98.7 billion. UNH expects full-year adjusted EPS to be between $27.50 and $28, stronger than the consensus of $27.48.
Analysts’ consensus opinion on UNH stock is bullish, with a “Strong Buy” rating overall. Out of 23 analysts covering the stock, 21 advise a “Strong Buy” rating, and two suggest a “Moderate Buy.” UNH’s average analyst price target is $625.48, indicating a potential upside of 7% from the current levels.
On the date of publication, Neha Panjwani 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.
