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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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
-
Your 5-Step Guide to Discovering Whether a Lawyer Is ShadyResearch shows you can't rely on some state bar websites to vet a lawyer you're considering hiring. Here's how to check out a lawyer before you hire.
-
Steps to Keep Your Student Focused on College, Not FinancesToo many students drop out due to financial strain. This plan can help families plan for the costs and get timely aid that sees students through to graduation.
-
How to be the Chief Vision Officer of Your Advisory PracticeThe key is to transition from a tactical "doer" to a strategic "chief vision officer" by building the teams, processes and brand so your practice can grow.
-
Beyond the Bar: Your 5-Step Guide to Discovering Whether a Lawyer Is Shady
Research shows you can't rely on some state bar websites to vet a lawyer you're considering hiring. Here's how to check out a lawyer before you hire.
-
6 Practical Steps to Help Keep Your Student Focused on College Rather Than the Financial Strain
Too many students drop out due to financial strain. This plan can help families plan for the costs and get timely aid that sees students through to graduation.
-
Are You the Doer or the Visionary of Your Advisory Practice? Here's How You Can Make the Leap to Chief Vision Officer
The key is to transition from a tactical "doer" to a strategic "chief vision officer" by building the teams, processes and brand so your practice can grow.
-
These Unloved Energy Stocks Are a BargainCleaned-up balance sheets and generous dividends make these dirt-cheap energy shares worth a look.
-
You've Heard It Before, But This Investment Advice Still Pays Off"Time in the market beats timing the market" ¬— been there, done that, right? But don't write off the underlying advice. There's a reason it's a popular saying.
-
Are Clients Asking About Adding Crypto to Their Retirement Plans? This Is How Advisers Can Approach This New 401(k) FrontierAdvisers need to establish clear frameworks to address client interest, navigate risks like volatility, and ensure they meet their fiduciary responsibilities.
-
3 Niche Oil and Gas Investments for Next-Gen Wealth BuildersLesser-known segments of the oil and gas sector present unique opportunities for next-gen investors and family offices, as long as they're vetted thoroughly.
-
A Portfolio Checklist If You're Planning to Retire in 2027Are you planning to retire in 2027? This portfolio checklist will help put you on the right path.
