UnitedHealth Group Incorporated (UNH)
Which Is Healthier - UnitedHealth Or Centene?
Healthcare insurers like UnitedHealth Group Incorporated and Centene Corporation have suffered steep stock declines due to surging medical costs and regulatory headwinds. Both firms face rising claims, regulatory changes, and uncertainty around rate adjustments, impacting margins and earnings outlooks. CNC appears cheaper than UNH on some valuation metrics, but both companies have sharply reduced earnings guidance for 2025, reflecting ongoing sector challenges.
UnitedHealth Is Dirt Cheap -- Yet The Comeback Won't Be Quick
UnitedHealth is deeply undervalued, trading at low P/E and P/FCF multiples despite long-term growth potential and a wide economic moat. Short-term challenges persist: earnings are down, CEO resigned, DoJ investigation ongoing, and higher medical costs are pressuring margins. Management and analysts remain optimistic about a return to double-digit growth, but a quick recovery is unlikely; patience is required.
UnitedHealth: Time To Double Down (Rating Upgrade)
UnitedHealth stock plummeted 17.46% after my "Buy" call after missing Q2 EPS expectations by 9%. I see an overreaction creating a strong buying opportunity. Despite Q2 margin and EPS disappointments, management's margin recovery plan and portfolio rationalization should stabilize earnings by 2027. Regulatory risks seem to be subsiding, and with a forward P/S below 0.5x, UNH offers 55-87% upside as sentiment recovers.
This banking powerhouse sees 36% rally for UnitedHealth stock
Shares of UnitedHealth Group (NYSE: UNH) rose 1.2% to $240 on Monday, though the stock remains down 52% year-to-date.
UNH Stock To $160?
UnitedHealth Group's stock has suffered a steep decline, dropping from around $600 in April of this year to its current price near $260 — an astonishing 58% decrease over four months. This significant correction indicates a fundamental weakening in the company's core health insurance sector, exacerbated by rising medical expenses that have greatly reduced profitability margins.
UnitedHealth: Everyone Is Overreacting
Despite missing Q2 2025 earnings expectations, I see potential in the company's valuation for future growth and profitability. I approach the analysis from a more abstract perspective, focusing on what current valuation implies for required growth. Within our analysis the company could currently be undervalued by up to 135%.
UnitedHealth Group: Buy This Falling Knife - Raised 2026 Premiums Trigger Recovery Prospects
UNH's oversold status has been overly done, as the market digests the market-wide headwinds arising from regulatory changes and macro uncertainties. While the management's new FY2025 guidance implies impacted adj EPS performance, things are likely to improve drastically from 2026 onwards/ through 2027. This is especially since UNH will be raising their premiums by the double digits in the commercial businesses and +6% in the Medicaid segment from January 2026 onwards.
UnitedHealth Group And Molina Healthcare: Bottom Fishing In Healthcare
Health insurers UNH and MOH have been hit hard by rising medical costs, regulatory pressures, and negative earnings surprises, but may offer value opportunities. UNH has the benefits of scale and diversification, but DOJ probes and leadership changes are overhangs. MOH is less exposed to problem areas like pharmacy inflation and behavioral health, but negative cash flow is a concern; it could be the best value for a rebound trade.
UnitedHealth: The Disappointment Continues
UnitedHealth Group Incorporated faces ongoing structural headwinds, poor execution, and a dramatic EPS reset, making a quick recovery highly unlikely. Management's guidance lacks confidence, with 2025 adjusted EPS slashed to $16, down substantially from its original outlook. While management has postured for further improvements through 2027, investors aren't buying into UNH's optimism yet.
UnitedHealth Q2: Seeing More Clarity Could Be Positive For The Stock
UNH's Q2 FY2025 results significantly missed EPS expectations due to higher medical costs, and its updated FY2025 guidance came in largely below consensus. Higher MA cost trends continue to pressure margins in 2H 2025, and management now expects 2026 costs to rise further after miscalculation. Adjusted EPS is expected to decline 66% YoY in 2H FY2025, with FY2025 guidance at least $16 per share, implying a 42% YoY drop.
UnitedHealth: Healthcare Costs Weigh On Earnings (Rating Downgrade)
On July 16, I wrote an article on UnitedHealth, rating it a buy (albeit a low-conviction buy with many risk factors). Yesterday, the company put out an earnings release that was worse than I anticipated. Despite strong revenue growth, profitability was impacted by rising healthcare costs.
UnitedHealth: The Bottom Might Be In (Technical Analysis)
Despite rising medical costs and margin pressures, UnitedHealth Group Incorporated remains solidly profitable, with strong sales growth and a robust net earnings base. UNH stock is now technically oversold, trading at just 12x 2026 estimated profits and offering a 3.3% dividend yield, making it attractive for value investors. A recovery is possible if UnitedHealth Group controls its medical care ratio and meets profit guidance, with even slight improvements likely to shift sentiment positively.
