Key Stats for UnitedHealth Stock
- Price change for UnitedHealth stock in the last 6 months: 20%
- $UNH Stock Price as of Oct. 13: $378
- 52-Week High: $462
- $UNH Stock Price Target: $481
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What Happened?
UnitedHealth Group (UNH) beat Wall Street estimates for Q3 on Tuesday and raised its annual profit outlook.
- Adjusted earnings were $4.69 per share. vs. estimates of $4.14 per share. Last year, it reported EPS of $2.92 per share.
- Revenue was $112.69 billion, above the $111.49 billion estimate but slightly below $113.16 billion a year ago.
- Net income was $4.11 billion.
The medical care ratio was 88.4%, below estimates of 89.9% and last year’s 89.9%. This ratio shows how much of each premium dollar goes to medical bills. A lower number means better profit margins.
The company now expects full-year adjusted earnings of at least $20.50 per share, above the prior mid-point outlook of $19.5 per share.
CFO Wayne DeVeydt said the company is investing heavily in value-based care. He also called the earnings quality “strong and durable” going into 2027.
Value-based care ties doctor pay to patient health outcomes instead of the number of services provided.
DeVeydt said acute hospital admissions fell 15% through Q3 compared with a year ago, while home health admissions rose 10%.
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What the Market Is Telling Us About UnitedHealth Stock
UnitedHealth stock seems to be getting credit for the turnaround, as it has beaten estimates for the third consecutive quarter.
The company has been shrinking membership and exiting unprofitable contracts to fix its margins.
Still, costs remain a concern.
DeVeydt said medical costs remain elevated compared with historical levels, with inpatient care and specialty drugs as major pressure points. He also said No Surprises Act disputes add at least 1 percentage point to total medical costs.
The company pointed to growth ahead and said analyst estimates for 2027 may be too low.
It sees the low end of its 13% to 16% long-term growth range as a fair starting point.
UnitedHealth has repurchased $5 billion of stock through Q3 and paid $6.2 billion in dividends so far this year.
For now, UnitedHealth stock is being driven by improving margins and a higher outlook. Medical costs and policy changes are still the main risks to watch.
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So what is UnitedHealth stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
