UnitedHealth Group (UNH) stock is down 40% year-to-date but has surged over 20% this month following investment stakes from Warren Buffett’s Berkshire Hathaway (BRK.B) and David Tepper’s Appaloosa Management. This move comes amid a backdrop of a DOJ investigation into its subsidiary Optum and previous suspension of full-year financial guidance due to high medical costs.
As of now, UnitedHealth Group expects full-year fiscal 2025 earnings per share (EPS) to be at least $16, a decline from previous estimates of $22.28. In the past 60 days, EPS expectations for FY26 have dropped nearly 30%, from $25.58 to $18.08. The company maintains a total of over $32 billion in cash with total assets surpassing $308 billion against total liabilities of $208.1 billion.
Despite the recent rally, analysts advise caution, as UNH currently holds a Zacks Rank of #5 (Strong Sell), suggesting that investors might reconsider entering the stock at this time.
