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UnitedHealth Group Inc. (UNH) Stock

UnitedHealth Group Inc. Stock Details, Movements and Public Alerts

UnitedHealth Group: The Healthcare Giant Building Tomorrow's Integrated Care Empire

Discover how UnitedHealth Group (UNH) dominates American healthcare through its powerful combination of insurance coverage and health services. This comprehensive analysis explores the investment case for the $520 billion healthcare colossus, examining Optum's explosive growth, demographic tailwinds, and CEO Andrew Witty's vision for integrated care delivery.

  • Optum Growth Engine:Health services division approaching $200B revenue, growing 15%+ annually
  • Scale Advantage:$372B revenue leader serving 50M+ members with integrated model
  • Demographic Tailwind:10,000 Americans turn 65 daily, driving Medicare Advantage growth
  • Attractive Valuation:PE of 25x reasonable for 13-15% EPS growth compounder

Market Cap

$280.41B

52-Week High

$621.24

-52.62% from high

52-Week Low

$247.13

+19.11% from low

Avg Daily Volume

13,225,966

100-day average

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

12.94

Below market average

Forward P/E

13.59

Earnings expected to decline

PEG Ratio

0.82

Potentially undervalued

Price to Book

2.95

EV/EBITDA

8.99

EPS (TTM)

$23.89

Price to Sales

0.68

Beta

0.45

Less volatile than market

How is UNH valued relative to its earnings and growth?
UnitedHealth Group Inc. trades at a P/E ratio of 12.94, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 13.59 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 0.82 suggests the stock may be undervalued relative to its growth rate.
What is UNH's risk profile compared to the market?
With a beta of 0.45, UnitedHealth Group Inc. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 2.95 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

5.39%

Operating Margin

8.32%

Return on Equity

22.70%

Return on Assets

7.04%

Revenue Growth (YoY)

9.80%

Earnings Growth (YoY)

2.60%

How profitable and efficient is UNH's business model?
UnitedHealth Group Inc. achieves a profit margin of 5.39%, meaning it retains $5.39 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 8.32% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 22.70% and ROA at 7.04%, the company generates strong returns on invested capital.
What are UNH's recent growth trends?
UnitedHealth Group Inc.'s revenue grew by 9.80% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 2.60% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against HOSPITAL & MEDICAL SERVICE PLANS industry averages for proper context.

Dividend Information

Dividend Per Share

$8.40

Dividend Yield

2.86%

Ex-Dividend Date

6/16/2025

Dividend Date

6/24/2025

What dividend income can investors expect from UNH?
UnitedHealth Group Inc. offers a dividend yield of 2.86%, paying $8.40 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 6/16/2025.
How reliable is UNH's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - UnitedHealth Group Inc. pays $8.40 per share in dividends against earnings of $23.89 per share, resulting in a payout ratio of 35.16%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for 6/24/2025.

Company Size & Market

Shares Outstanding

907.14M

Book Value/Share

$104.44

Asset Type

Common Stock

What is UNH's market capitalization and position?
UnitedHealth Group Inc. has a market capitalization of $280.41B, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 907.14M shares outstanding, the company's ownership is relatively concentrated. As a major player in the HOSPITAL & MEDICAL SERVICE PLANS industry, it competes with other firms in this sector.
How does UNH's price compare to its book value?
UnitedHealth Group Inc.'s book value per share is $104.44, while the current stock price is $294.36, resulting in a price-to-book (P/B) ratio of 2.82. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$385.25

30.88% upside potential

Analyst Recommendations

Strong Buy

6

Buy

14

Hold

5

Sell

1

Strong Sell

1

How reliable are analyst predictions for UNH?
27 analysts cover UNH with 74% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $385.25 implies 30.9% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on UNH?
Current analyst recommendations:6 Strong Buy, 14 Buy, 5 Hold, 1 Sell, 1 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 1, 2025, 04:34 AM

Earnings Dates

Upcoming Earnings

Q2

Jul 29, 2025

Est. EPS: $4.75

In 14 days

Recent Earnings History

DateQuarterEstimated EPSActual EPSSurprise
Jul 14, 2025Q2$5.72--
Apr 17, 2025Q1$7.29$7.20-1.2%
Jan 16, 2025Q4$6.74$6.81+1.0%
Oct 15, 2024Q3$7.03$7.15+1.7%
Jul 16, 2024Q2$6.63$6.80+2.6%
Apr 16, 2024Q1$6.62$6.91+4.4%
Jan 12, 2024Q4$5.99$6.16+2.8%
Oct 13, 2023Q3$6.35$6.56+3.3%

Technical Indicators

RSI (14-day)

42.69

Neutral

50-Day Moving Average

$316.98

-7.14% below MA-50

200-Day Moving Average

$476.79

-38.26% below MA-200

MACD Line

-5.27

MACD Signal

-6.43

MACD Histogram

1.15

Bullish

What does UNH's RSI value tell investors?
The RSI (Relative Strength Index) for UNH is currently 42.69, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being below the 50-day moving average, this confirms bearish conditions.
How should traders interpret UNH's MACD and moving average crossovers?
MACD analysis shows the MACD line at -5.27 above the signal line at -6.43, with histogram at 1.15. This bullish crossover suggests upward momentum is building. The wide histogram confirms strong momentum. The 50-day MA ($316.98) is below the 200-day MA ($476.79), forming a death cross pattern that often warns of extended weakness. Price is currently below both MAs, confirming weakness.

Indicators last updated: Jul 15, 2025, 04:42 PM

Active Alerts

Alert Condition
Reaches new 52-week low
Threshold
N/A
Created
May 15, 2025, 07:29 AM

UnitedHealth Group (UNH) Stock Analysis 2025: Healthcare Integration Leader Investment Guide

Discover how UnitedHealth Group (UNH) dominates American healthcare through its powerful combination of insurance coverage and health services. This comprehensive analysis explores the investment case for the $520 billion healthcare colossus, examining Optum's explosive growth, demographic tailwinds, and CEO Andrew Witty's vision for integrated care delivery.

When Andrew Witty took the helm at UnitedHealth Group in 2021, he inherited something unique in American healthcare: a company that had quietly built both the nation's largest health insurer and its most comprehensive health services platform. Today, with $372 billion in annual revenue and 50 million members, UNH isn't just participating in healthcare's transformation – it's architecting it. The secret lies in Optum, the services division that's growing at 15% annually and approaching $200 billion in revenue, making it larger than most Fortune 100 companies on its own.

While competitors scramble to copy UnitedHealth's integrated model, the company's 30-year head start has created an insurmountable moat. UnitedHealthcare provides the insurance coverage, OptumHealth delivers care through 70,000 physicians, OptumRx manages pharmacy benefits for 55 million people, and OptumInsight provides the data analytics that ties it all together. This isn't just vertical integration – it's a complete reimagining of how healthcare should work.

The Financial Fortress: Scale Meets Efficiency

UnitedHealth's financial performance reads like a masterclass in consistent execution. Revenue has grown from $157 billion in 2015 to $372 billion in 2024, representing an 11% compound annual growth rate that would be impressive for a startup, let alone America's eighth-largest company by revenue. But the real story lies in the composition of that growth: while UnitedHealthcare insurance grew steadily at 7-8% annually, Optum exploded at 15-20%, fundamentally changing the company's DNA.

The numbers tell a compelling story of operational excellence. Operating margins expanded from 6.5% to 8.2% over the past five years despite constant regulatory headwinds. The company generated $22.4 billion in operating earnings in 2024, with Optum contributing nearly half despite being the smaller division by revenue. Free cash flow consistently runs at $20-22 billion annually, funding both growth investments and generous shareholder returns.

Perhaps most impressively, UnitedHealth has delivered this growth while maintaining fortress-like financial stability. The medical loss ratio – the percentage of premiums paid out in claims – runs at a disciplined 82-83%, best in class among major insurers. Return on equity exceeds 25%, demonstrating exceptional capital efficiency. With just $42 billion in debt against $32 billion in cash and investments, the balance sheet remains rock-solid despite aggressive expansion.

Valuation: Premium Justified by Quality

At 25 times earnings, UnitedHealth trades at a premium to the S&P 500's 21x multiple and above pure-play insurers like Elevance (15x) or Humana (18x). But this premium valuation reflects a premium business model. The company's consistent 13-15% earnings per share growth dwarfs the 7-9% delivered by traditional insurers, while the Optum growth engine provides visibility that pure insurance plays lack.

The valuation becomes even more compelling when viewed through a sum-of-the-parts lens. UnitedHealthcare insurance alone, generating $280 billion in revenue, would command a $300 billion valuation at peer multiples. Optum, growing at 15% with expanding margins, could easily justify a $250-300 billion valuation as a standalone entity. Add them together and UNH's current $520 billion market cap looks reasonable, even conservative.

Forward estimates suggest continued multiple support. Analysts project 12-14% annual EPS growth through 2027, driven by Optum expansion and Medicare Advantage growth. At 20x 2025 earnings of $28 per share, the stock could reach $560, implying 15% upside. More aggressive assumptions around Optum's growth trajectory could justify $600+, while maintaining the current multiple.

Three Unstoppable Growth Catalysts

1. The Silver Tsunami: Demographics as Destiny

Every single day, 10,000 Americans turn 65 and become Medicare eligible. This demographic wave, set to continue through 2030, represents the most predictable growth driver in healthcare. UnitedHealth commands 30% market share in Medicare Advantage, the private alternative to traditional Medicare that now covers 31 million seniors. With penetration at just 51% and growing 8% annually, the runway extends for years.

But UnitedHealth's advantage goes beyond market share. The company's integrated model – combining insurance coverage with Optum's care delivery – creates superior outcomes at lower costs. Members can access OptumHealth physicians who coordinate with OptumRx pharmacists while OptumInsight's analytics identify health risks before they become expensive problems. This integration drives 5-10% better health outcomes and 15% lower costs versus traditional Medicare, creating a virtuous cycle of growth and profitability.

2. Optum: The $500 Billion Opportunity

If Optum were a standalone company today, it would rank among the 10 largest U.S. corporations by revenue. But Andrew Witty sees this as just the beginning. The division's $200 billion revenue target for 2025 looks increasingly conservative as each segment accelerates. OptumHealth's 70,000 employed and affiliated physicians make it America's largest medical group, with ambitious plans to reach 100,000 by 2028.

The real opportunity lies in value-based care – being paid for keeping people healthy rather than treating sickness. Optum manages $70 billion in value-based arrangements today, generating 300-500 basis points higher margins than fee-for-service medicine. As the U.S. healthcare system inevitably shifts toward value-based models, Optum's scale and data advantages position it to capture disproportionate share. Management sees a path to $500 billion in Optum revenue by 2030, which would make it larger than today's entire company.

3. Data and AI: The Next Frontier

With health records on 150 million Americans and pharmacy data on 55 million, UnitedHealth possesses the healthcare industry's most comprehensive dataset. OptumInsight's analytics platform processes 15 billion clinical transactions annually, identifying patterns invisible to human analysis. The company invests $2 billion annually in technology, building AI models that predict hospitalizations, optimize treatment protocols, and identify fraud.

The payoff is already visible. AI-driven prior authorization reduces approval times from days to seconds while improving accuracy. Predictive models identify high-risk patients for intervention, reducing hospital admissions by 20-30%. Fraud detection algorithms save $4 billion annually. As AI capabilities exponentially improve, UnitedHealth's data advantage becomes increasingly insurmountable. Competitors can copy the integrated model, but they can't replicate 30 years of health data.

Risk Factors: The Price of Dominance

1. Healthcare Reform Risk (40% probability)

  • Political pressure for Medicare for All or public option remains persistent
  • Drug pricing reforms could impact OptumRx's pharmacy benefit margins
  • Regulatory scrutiny on vertical integration and market power intensifying

2. PBM and Antitrust Scrutiny (35% probability)

  • FTC investigating pharmacy benefit manager practices industry-wide
  • Potential forced divestiture of OptumRx or care delivery assets
  • State-level regulations limiting insurance-provider integration

3. Operational Complexity (25% probability)

  • Change Healthcare cyberattack exposed vulnerabilities in connected systems
  • Integration challenges as Optum rapidly acquires physician practices
  • Medical cost inflation could pressure margins if not managed properly

Who Should Own UNH Stock?

Perfect For

  • Long-term investors seeking healthcare exposure (5+ year horizon)
  • Dividend growth investors (1.3% yield, 15% annual increases)
  • Risk-averse investors wanting defensive growth
  • Retirement portfolios needing demographic tailwinds

Less Suitable For

  • Short-term traders (low volatility, steady grower)
  • Deep value investors (premium valuation)
  • High-growth seekers (15% growth solid but not explosive)
  • Political risk-averse investors (reform headlines create volatility)

The Smart Money Entry Strategy

UnitedHealth rarely goes on sale, but when it does, the discounts are fleeting. The stock typically trades in a steady upward channel, punctuated by sharp selloffs on political headlines. Medicare for All discussions in election years, drug pricing proposals, or regulatory investigations create 10-15% pullbacks that prove to be buying opportunities. Patient investors should maintain a shopping list and strike when fear peaks.

Dollar-cost averaging works exceptionally well for UnitedHealth given its steady growth and low volatility. Initiating a position with 25% of intended allocation, then adding 25% on any 5% pullback from recent highs, builds positions systematically. The key is not waiting for the perfect entry – investors who delayed buying UNH below $400, then $450, then $500, learned this lesson painfully.

For options-savvy investors, selling cash-secured puts during volatility spikes generates income while creating disciplined entry points. Selling puts 5-10% below market during political panic often yields 2-3% premiums for 30-45 day contracts. If assigned, you own a quality compounder at a discount. If not, the premium provides consolation while waiting for the next opportunity.

The Verdict: A Core Healthcare Holding

UnitedHealth Group represents a unique investment proposition: a defensive healthcare giant growing like a technology company. While regulatory headlines will create volatility, the fundamental drivers – aging demographics, healthcare digitization, and the shift to value-based care – remain unstoppable. CEO Andrew Witty's vision of integrated care delivery isn't just corporate strategy; it's the future of American healthcare.

The investment case ultimately rests on a simple thesis: As healthcare grows from 18% to 20% of GDP, the companies best positioned to manage costs while improving outcomes will capture disproportionate value. UnitedHealth's 30-year head start in integration, unmatched data assets, and proven execution make it the safest bet on this transition. Yes, political risks are real. Yes, the valuation requires continued execution. But for investors seeking exposure to healthcare's transformation, UNH remains the gold standard.

  • 2025 Price Target: $560-600 (+15-25%)
  • Risk Level: Below Average (for a growth stock)
  • Recommendation: Buy on any weakness below $500, accumulate for long-term

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