Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 15 Aug, 25 | UNH | Buy | USD 299.63 | USD 315.0 | USD 333.0 | 24 days | Closed |
11.47%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
UnitedHealth Group Incorporated operates as a diversified health care company in the United States. It operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage, and health and well-being services to individuals age 50 and older addressing their needs; Medicaid plans, children's health insurance and health care programs; and health and dental benefits, and hospital and clinical services, as well as health care benefits products and services to state programs caring for the economically disadvantaged, medically underserved, and those without the benefit of employer-funded health care coverage. The OptumHealth segment provides care delivery, care management, wellness and consumer engagement, and health financial services for consumers, care delivery systems, providers, employers, payers, and public-sector entities. The OptumInsight segment offers software and information products, advisory consulting arrangements, and managed services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations. The OptumRx segment provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and community health pharmacy services, and purchasing and clinical capabilities, as well as develops programs in the areas of step therapy, formulary management, drug adherence, and disease/drug therapy management. UnitedHealth Group Incorporated was incorporated in 1977 and is based in Minnetonka, Minnesota.
Revenue Growth – Increased from USD 98.9 billion in Q2 FY24 to USD 111.6 billion in Q2 FY25, an increase of USD 12.7 billion (up ~12.8%)
Optum Insight Operating Margin Improvement – Improved from 12.0% in Q2 FY24 to 20.7% in Q2 FY25, an increase of 870 basis points, driven by better mix and efficiency gains
Earnings from Operations Decline – Fell from USD 7.9 billion in Q2 FY24 to USD 5.2 billion in Q2 FY25, a decrease of USD 2.7 billion (down ~34%)
Net Margin Contraction – Dropped from 4.3% in Q2 FY24 to 3.1% in Q2 FY25, reflecting a deterioration of 120 basis points
UnitedHealth Group faces significant earnings pressure from rapidly rising medical cost trends that are outpacing pricing assumptions, particularly in Medicare Advantage, compounded by ongoing Medicare funding reductions.,
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 299.63 | 275.0 | 315.0 | 333.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
UnitedHealth Group delivered solid revenue growth in Q2 2025, with sales rising 13% year-over-year to USD 111.6 billion, supported by strong performance across UnitedHealthcare and Optum. The company reinstated and raised its full-year 2025 outlook, projecting revenues of up to USD 448 billion and adjusted EPS of at least USD 16.00, reflecting confidence in its operational execution and market positioning. Membership growth, particularly in Medicare Advantage and self-funded employer plans, along with continued expansion in Optum Rx and Optum Insight, highlights resilient demand for its diversified healthcare services. Management’s disciplined cost management, healthy cash flows, and shareholder returns further reinforce a constructive long-term growth trajectory.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to UnitedHealth Group (NYSE: UNH) at the current market price of USD 299.63 as of August 15,2025 at 7:15 am PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Healthcare Plans
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| UNH UnitedHealth Group Incorporated |
-5.18 1.56% | 326.45 | 22.57 | 18.38 | 1.33 | 5.65 | 1.38 | 13.97 |
| ELV Elevance Health Inc |
-1.59 0.46% | 344.37 | 18.00 | 12.66 | 0.65 | 2.87 | 0.74 | |
| CVS CVS Health Corp |
-0.04 0.05% | 77.84 | 12.06 | 9.08 | 0.29 | 1.34 | 0.47 | 8.96 |
| CI Cigna Corp |
0.68 0.25% | 274.52 | 30.25 | 10.09 | 0.39 | 2.10 | 0.50 | |
| HUM Humana Inc |
1.48 0.57% | 261.76 | 19.16 | 14.60 | 0.56 | 3.37 | 0.53 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is August 15,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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