UnitedHealth stock has dropped 40% YTD, facing challenges and scrutiny, but analysts maintain a "Moderate Buy"

From Yahoo Finance: 2025-07-01 21:30:00

UnitedHealth (UNH) stock has plummeted nearly 40% YTD, facing investor scrutiny and operational challenges. With a market cap of $280 billion, the company is considered a healthcare system powerhouse, despite recent setbacks and a stock price drop of 40%. Investors debate whether the worst is over or if more trouble lies ahead.

UnitedHealth reported Q1 2025 earnings below expectations, with revenue at $109.6 billion and adjusted EPS at $7.20. The company holds $34.3 billion in cash but faces cost pressures and utilization spikes in Medicare Advantage. CEO Stephen Hemsley remains focused on innovation, aiming for 13-16% earnings growth in the future.

Analysts anticipate a 25% YOY decline in Q2 2025 EPS for UnitedHealth, with a 20% drop for the full fiscal year. Despite challenges, analysts maintain a “Moderate Buy” rating for the stock, with a price target of $363.43 suggesting a potential 16% upside. Patience is advised, as volatility remains a concern in the near term.



Read more at Yahoo Finance: Is UnitedHealth Stock a Buy, Sell, or Hold for July 2025?