After a tumultuous first half of the year, American insurance giant UnitedHealth (NYSE: UNH) is back in focus ahead of its Q2 earnings report, scheduled for July 29.
Notably, the stock suffered steep losses in April after the company suspended its financial guidance amid multiple legal and regulatory probes into its billing practices and weaker full-year projections. The firm has since confirmed it is under investigation and is cooperating with the Department of Justice.
On the financial front, UnitedHealth missed earnings estimates last quarter and lowered its profit outlook due to higher-than-expected Medicare Advantage claims. Shares recorded their worst drop in decades in April and declined further following CEO Andrew Witty’s resignation announcement.
For the upcoming earnings report, analysts expect UnitedHealth to post $111.88 billion in revenue, representing a 13% year-over-year increase. However, adjusted earnings per share are projected to fall to $4.70 from $6.80.
Meanwhile, UNH shares continue to struggle below the key $300 resistance level, closing at $281.06 in the last session, up 0.86%. Year-to-date, the stock remains in the red, down 44%.
Wall Street’s outlook on UNH stock
Despite recent setbacks, Wall Street sentiment remains broadly positive. According to 24 analysts polled by TipRanks, the stock holds a ‘Moderate Buy’ consensus. Among them, 18 recommend ‘Buy,’ five suggest ‘Hold,’ and only one has issued a ‘Sell’ rating.
The average 12-month price target stands at $348.12, representing a potential upside of 24.96% from the current level. Forecasts range from a low of $270 to a high of $440.
Among recent analyst actions, Wells Fargo’s Stephen Baxter reiterated a ‘Buy’ rating on July 25 but lowered his price target from $351 to $306. The move reflects a more cautious near-term outlook while maintaining long-term confidence in the stock. Baxter called the adjustment a ‘recalibration’ rather than a shift in sentiment, adding that UnitedHealth remains a core holding.
Similarly, Deutsche Bank analyst George Hill reduced his target from $362 to $328 on July 22, citing deteriorating investor sentiment due to a series of negative developments and sector-wide challenges. Hill also lowered earnings estimates and flagged Optum Health, UnitedHealth’s healthcare services arm, as the company’s biggest area of concern.
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