UnitedHealth's stock (NYSE:UNH) has undergone a noticeable decline, decreasing from a peak of around $600 in April to about $275 in May, and then making a slight recovery to $325. This drop followed the company's announcement of disappointing Q1 results, the later retraction of its earnings forecast, and sudden shifts in top management.
Shares of Centene (NYSE: CNC) have tumbled more than 20% after the healthcare giant stunned investors by withdrawing its full-year financial guidance.
UnitedHealth Group operates through UnitedHealthcare (insurance) and Optum (health services, tech, pharmacy), making it a global healthcare leader. Shares have plummeted over 40% in 2025, reflecting negative sentiment and recent underperformance. Q1 earnings were mixed: some growth areas, but also notable shortfalls and missed targets.
UNH's removal from key Russell growth indices caps a turbulent stretch marked by steep losses, rising costs and regulatory woes.
UnitedHealth: Pivotal Changes Underway
Key Points in This Article: UnitedHealth Group (UNH) has plummeted nearly 52% from its April peak, driven by a rare series of cataclysmic events.
The market is overestimating the negative impact of policy crackdowns, DoJ investigations, and Medicare/Medicaid cuts on UnitedHealth Group's long-term fundamentals. While legislative and regulatory headwinds will likely compress margins and slow growth, UNH's diversified business model and strong market position provide resilience and upside potential. Optum Insights is a key growth catalyst, with double-digit margin expansion and AI-driven healthcare analytics offsetting weakness in other segments.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Despite a rare earnings miss, CEO departure, DOJ investigation, and guidance withdrawal, we view UNH as a strong long-term buy at current depressed valuations. UNH's robust balance sheet, healthy dividend coverage, and potential for substantial share buybacks should create a valuation floor and support near-term downside protection. Even in a worst-case 30% y/y EPS decline, UNH trades well below historical and market multiples, offering an attractive entry point in our view.
UnitedHealth Group (UNH) reached $305.75 at the closing of the latest trading day, reflecting a +1.68% change compared to its last close.
UNH ramps up AI use to cut costs, boost efficiency, and reshape healthcare workflows, but legal risks remain.
Although UnitedHealth's (NYSE: UNH) stock has plummeted 40% in 2025, insider confidence in the company has surged to new highs, with executive purchases of shares spiking by nearly 3,000%.