UnitedHealth Stock Leads Dow Lower After Earnings: What to Know
UnitedHealth Group stock is sinking Tuesday after the insurance giant revised its full-year profit outlook.


UnitedHealth Group (UNH) stock is down more than 9% in early trading Tuesday, dragging the price-weighted Dow Jones Industrial Average into the red. The selloff comes as the health insurance company trimmed the top end of its full-year profit forecast, which is offsetting a third-quarter earnings beat.
In the three months ended September 30, UnitedHealth's revenue increased 9.1% year-over-year to $100.8 billion, thanks in part to a 7.1% jump in premiums to $77.4 billion. Its earnings per share (EPS) were up 9% from the year-ago period to $7.15.
"Our continued growth, which positions us well for the coming years, is rooted in the innovative products and responsive service of our people that are embraced each day across the full range of health care participants," said UnitedHealth CEO Andrew Witty in a statement.

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.
UNH's third-quarter results topped analysts' expectations. Wall Street was anticipating revenue of $99.3 billion and earnings of $7 per share, according to Yahoo Finance.
As a result of "business disruption impacts" from the data breach at its Change Healthcare unit earlier this year, UnitedHealth went on to revise its full-year profit forecast. It now anticipates EPS in the range of $27.50 to $27.75, with the top end of that guidance down from its previous forecast of $27.50 to $28.
Is UnitedHealth stock a buy, sell or hold?
Heading into Tuesday's trading, UnitedHealth Group stock was up 16.4% on a total return basis (price change plus dividends). While this lags the S&P 500's 24.2% gain, Wall Street remains bullish on the Dow Jones stock.
According to S&P Global Market Intelligence, the average analyst target price for UNH stock is $627.53, representing implied upside of more than 14% to current levels. Additionally, the consensus recommendation on the blue chip stock is a Strong Buy.
Financial services firm Truist Securities is one of the more bullish outfits on UNH stock with a Buy rating and $640 price target.
UnitedHealth has "highly integrated, complementary platforms benefiting from meaningful scale, diversification and robust capabilities complemented by a sizable balance sheet and significant cash flow generation," says Truist analyst David MacDonald. He adds that "core trends remain solid" despite the impact of the data breach at Change Healthcare.
Related content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Investing Abroad Could Pay Off — Here's How
Countries overseas are stimulating their economies, and their stocks are compelling bargains.
-
Retire in Belize for Stunning Natural Beauty and Culture
Belize offers miles of protected land and ocean, a rich mix of cultures and a chill lifestyle. Best yet — the income requirement is just $2K per month.
-
Why Investing Abroad Could Pay Off
Countries overseas are stimulating their economies, and their stocks are compelling bargains.
-
Are These the Next Stocks to Split?
Interactive Brokers' recently split its stock to makes its shares more accessible to investors. Could these high-priced stocks be next?
-
Your Home + Your IRA = Your Long-Term Care Solution
If you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
-
I'm a Financial Planner: Retirees Should Never Do These Four Things in a Recession
Recessions are scary business, especially for retirees. They can scare even the most prepared folks into making bad moves — like these.
-
A Retirement Planner's Advice for Taking the Guesswork Out of Income Planning
Once you've saved for retirement, you'll need your nest egg to support you for as many as 30 years. For that, you need a clear income strategy, not guesswork.
-
Stock Market Today: Stocks Swing as Trump Scraps Canada Trade Talks
Despite a mid-afternoon slip, the S&P 500 and Nasdaq ended the day at new record highs.
-
Why Smart Retirees Are Ditching Traditional Financial Plans
Financial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
To My Small Business: Well, I've Been Afraid of Changin', 'Cause I've Built My Life Around You
While thinking about succession planning might feel like anticipating a landslide (here's to you, Fleetwood Mac), there are strategies you can implement to manage the uncertainty and the transition.