"UnitedHealth Group ( ) has endured a brutal 2025, with shares down approximately 35% year-to-date. This marks the company's worst annual performance since 2008, when it lost more than 54% during the financial crisis. The stock reached a 52-week low around $235 in August before rebounding roughly 46% to its current levels near $328. Despite this sharp decline - or precisely because of it - the depressed valuation has created an attractive entry point for investors. Trading at a forward P/E ratio 18 and offering a dividend yield of about 2.7%, UnitedHealth stands out as a compelling dividend stock heading into 2026, backed by its massive scale and impressive cash generation capabilities."
"UnitedHealth's stock plunge stemmed primarily from unexpectedly high medical costs in its Medicare Advantage business. Throughout 2025, elevated utilization rates - particularly in physician and outpatient services - drove the medical care ratio to levels around 89%, far above prior expectations. The company repeatedly lowered its earnings guidance, from an initial $29.50- to $30 per share to around $16.25 by the end of the third quarter. Additional pressures included leadership changes, with CEO Andrew Witty stepping down mid-year and former CEO Stephen Hemsley returning, as well as ongoing Justice Dept. investigations into Medicare billing practices."
UnitedHealth Group's shares declined roughly 35% year-to-date in 2025, marking its worst annual performance since 2008. The stock hit a 52-week low near $235 in August before rebounding to around $328. The drop primarily reflected unexpectedly high medical costs in the Medicare Advantage business, with utilization in physician and outpatient services pushing the medical care ratio toward 89%. Management repeatedly cut earnings guidance to about $16.25 per share, and leadership changes plus Justice Department probes added pressure. Q3 showed 12% revenue growth but weaker profitability. UnitedHealthcare serves over 50 million consumers domestically.
Read at 24/7 Wall St.
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