BofA update shows where active managers are putting money
UnitedHealth Group (NYSE:UNH) stock has reached a 52-week low of $248.87, marking a significant drop from its peak of $630.73. According to InvestingPro analysis, the stock appears undervalued, with strong fundamentals including a P/E ratio of 10.8x and a healthy 3.3% dividend yield. This marks a significant downturn for the healthcare giant, reflecting a 1-year change of -56.47%. Despite the decline, InvestingPro data shows UnitedHealth maintains strong financial health with an "Overall Great" rating and has consistently raised dividends for 15 consecutive years. The stock’s decline over the past year highlights ongoing challenges within the sector and the company’s performance, as investors react to market conditions and company-specific developments. The sharp drop in UnitedHealth’s stock price underscores the volatility and uncertainty currently facing the healthcare industry. For deeper insights, including 12 additional ProTips and comprehensive valuation metrics, check out the full UnitedHealth Pro Research Report, available exclusively on InvestingPro.
In other recent news, UnitedHealth Group’s second-quarter 2025 earnings report has raised concerns about its OptumHealth division, leading Baird to downgrade the company’s stock from Neutral to Underperform. This downgrade was accompanied by a significant reduction in the price target to $198.00, citing potential downside risks. Additionally, Fitch Ratings revised UnitedHealth’s outlook to negative from stable, though it affirmed the insurer’s financial strength ratings at ’AA-’. On the analyst front, KeyBanc lowered its price target for UnitedHealth to $350 while maintaining an Overweight rating, indicating the company has established a credible earnings per share baseline. RBC Capital also reduced its price target to $286, attributing the change to margin headwinds but retained an Outperform rating. Meanwhile, Cantor Fitzgerald maintained its Overweight rating with a price target of $440, noting a potential turning point for the company despite reducing its 2025 earnings per share estimate. These developments reflect a mix of cautious optimism and concern among analysts regarding UnitedHealth’s financial trajectory.
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