UnitedHealth Group's (UNH) outlook cut Thursday has raised concerns about its insurance peers, with several set to report earnings in the coming weeks.
UnitedHealth Group has fought with higher medical costs for more than a year, but relief is on the way.
Shares of UnitedHealth Group (NYSE: UNH) plunged by more than 22% Thursday morning after the company reported underwhelming first-quarter earnings and revised its full-year outlook.
During the April 17 session, UnitedHealth (NYSE: UNH) suffered one of its worst single-day crashes in history, prompting multiple prominent analysts to downgrade their 12-month forecasts for the company.
UnitedHealth Group is downgrading its 2025 revenue forecast because of issues with its Medicare business. Speaking during a conference call Thursday (April 17) discussing first-quarter earnings, CEO Andrew Witty said the company began the year in two different ways.
UnitedHealth has traditionally been a company investors saw as reliable, having not missed earnings estimates since the 2008 global financial crisis.
Major U.S. equities indexes were mixed on the final day of an abbreviated trading week, with markets set to remain closed on Good Friday.
I underestimated UnitedHealth's vulnerability to rising medical costs, leading to a significant earnings miss and a 20% drop in market cap. Despite recent setbacks, UnitedHealth's long-term potential remains strong, with expected 13-16% annual earnings growth and attractive entry points for new investors. Rising healthcare costs and inflation pose significant challenges, making UnitedHealth less of a high-conviction pick in the near term.
UNH continues to witness significant growth in medical costs. However, its operating cost ratio improves.
Weak results from UnitedHealth arern't hurting all healthcare stocks. Eli Lilly is soaring on promising weight-loss pill news.
The major U.S. equities indexes were mixed at midday Thursday, with the Dow Jones Industrial Average down close to 400 points as UnitedHealth Group (UNH) shares plunged. The tech-heavy Nasdaq and the S&P 500 were slightly higher.
Healthcare stocks are getting shellacked today, pressured by a double-digit percentage drop in United Healthcare (NYSE: UNH).