UnitedHealth Group (UNH) is the best Dow Jones stock Tuesday after the health insurance giant topped analysts' expectations for its second quarter.
In the three months ended June 30, UnitedHealth's revenue increased 6.4% year-over-year to $98.9 billion, thanks in part to a 6.1% rise in premiums to $76.9 billion. UNH's earnings per share (EPS) were up 10.7% from the year-ago period to $6.80.
These results "reflect diversified and durable growth, and a commitment to ensuring high quality care is available to every person we are privileged to serve," UnitedHealth CEO Andrew Witty said on the company's conference call. "In the first half of the year, revenues grew by nearly $14 billion, with strong contributions from across the enterprise, led by double-digit growth at Optum. UnitedHealth Group enters the second half of the year with continuing and broad-based growth momentum."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
UnitedHealth's top- and bottom-line results came in ahead of analysts' expectations. According to Yahoo Finance, Wall Street was anticipating revenue of $98.8 billion and earnings of $6.66 per share.
The company also said that the total number of people served by its domestic commercial offerings increased 8.8% year-over-year to 29.6 million, while the total number of people served by its Medicare Advantage plans was up 2.3% to 7.8 million.
As a result of its performance in the first half of the year, UnitedHealth affirmed its full-year outlook, which calls for EPS to arrive between $27.50 to $28 – a range that satisfies analysts' expectations for earnings of $27.59 per share.
Should investors buy UnitedHealth after earnings?
While the decision on whether investors should buy UNH stock after earnings is ultimately their own and dependent upon their personal goals, Wall Street is overwhelmingly bullish toward the blue chip stock.
According to S&P Global Market Intelligence, the average analyst target price for UNH is $576.35, representing implied upside of nearly 6% to current levels. Additionally, of the 28 analysts that cover the stock, 19 rate it a Strong Buy, eight rate it a Buy and one rates it a Hold. This works out to a consensus recommendation of a Strong Buy.
Speaking for the bulls is Truist Securities analyst David MacDonald, who has a Buy rating and $600 price target on UNH. Thanks to strong cash flow generation and meaningful financial flexibility, MacDonald expects "the company's strong financial footing to continue to drive a virtuous cycle of fueling ongoing growth investment in the core business, expansion of capabilities, M&A and shareholder value creation."
Related Content
-
Ask the Editor — Tax Questions on the New Senior DeductionAsk the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on the new $6,000 deduction for taxpayers 65 and older.
-
These Summer 2025 Back-to-School Tax-Free Weekends Are Starting NowSales Tax Over a dozen states offer back-to-school shoppers a sales tax holiday this summer.
-
Do You Need Flood Insurance? I'm an Insurance Expert, and Here's Where You Can Get ItStandard homeowners insurance does not cover flood damage, so you might need separate flood insurance, which you can get either through FEMA or private companies. Here are the details.
-
I'm an Investment Professional: These Are the Three Money Tips I'm Giving My College GradCollege grads can help set themselves up for financial independence by focusing on emergency savings, opting into a 401(k) at work (if it's offered) and disciplined, long-term investing.
-
Stock Market Today: S&P 500, Nasdaq Hit New Highs on Retail Sales RevivalStrong consumer spending and solid earnings for AI chipmaker Taiwan Semiconductor Manufacturing boosted the broad market.
-
If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have TodayBerkshire Hathaway is a long-time market beater, but the easy money in BRK.B has already been made.
-
New SALT Cap Deduction: Unlock Massive Tax Savings with Non-Grantor TrustsThe One Big Beautiful Bill Act's increase of the state and local tax (SALT) deduction cap creates an opportunity to use multiple non-grantor trusts to maximize deductions and enhance estate planning.
-
Know Your ABDs? A Beginner's Guide to Medicare BasicsMedicare is an alphabet soup — and the rules can be just as confusing as the terminology. Conquer the system with this beginner's guide to Parts A, B and D.
-
I'm an Investment Adviser: Why Playing Defense Can Win the Investing GameChasing large returns through gold and other alternative investments might be thrilling, but playing defensive 'small ball' with your investments can be a winning formula.
-
Stock Market Today: Powell Rumors Spark Volatile Day for StocksStocks sold off sharply intraday after multiple reports suggested President Trump is considering firing Fed Chair Jerome Powell.
