UnitedHealth Is Approaching a Pivotal Moment. Should Investors Buy the Stock Before July 29?
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Research suggests that Interestingly, It's been an awful, horrible, lousy year so far for UnitedHealth Group (UNH 0. Furthermore, If I opened a thesaurus, I could easily find plenty of...
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July 22, 2025
04:49 AM
The Motley Fool
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Re suggests that Interestingly, It's been an awful, horrible, lousy year so far for UnitedHealth Group (UNH 0
Furthermore, If I opened a thesaurus, I could easily find plenty of other apt descriptions for the healthcare giant's performance over the last seven months (which is quite significant)
However, UnitedHealth is scheduled to report its second-quarter results in just one week -- before the market opens on July 29, considering recent developments
This could be a pivotal moment for the company
Should investors buy the stock before July 29
Low expectations UnitedHealth Group heads into its Q2 with decidedly low expectations
The company pulled its full-year guidance in May due to higher-than-anticipated Medicare Advantage costs, and the consensus among analysts surveyed by LSEG is for UnitedHealth to report revenue of $111. 75 billion, amid market uncertainty
Moreover, This tells us that number is roughly 13% higher than the company's revenue in the prior-year period
Could such solid revenue growth be enough to ignite a rally for the beaten-down stock, amid market uncertainty
Those same analysts look for UnitedHealth Group to post Q2 earnings of $4 (which is quite significant)
Furthermore, Nevertheless, 90 per, down nearly 28% year over year
Even the most optimistic analyst jects an earnings decline of more than 19%
Wall Street ly doesn't expect the Medicare Advantage issues to be resolved
On the other hand, UnitedHealth Group hasn't given analysts any reason to think otherwise
However, When the company withdrew its full-year outlook, it noted that a return to growth is expected in 2026, in today's market environment
Image source: Getty Images
A potential warning sign from a peer Any lingering investor hopes for a major positive surprise from UnitedHealth Group might have been dashed at least somewhat by the Q2 from one of its peers: Elevance Health (ELV 3 (quite telling). 20%) reported disappointing quarterly results on July 17, given the current landscape
Although Elevance beat analysts' Q2 revenue estimates, the health insurer fell well short of earnings expectations (fascinating analysis)
Elevance also lowered its full-year outlook
It blamed the downward revision on "the and industrywide impact of elevated cost trends in ACA [Affordable Care Act] and Medicaid, in light of current trends
Conversely, " UnitedHealth Group won't be immune to negative pressures affecting the entire health insurance industry
This leads to the conclusion that company offers plans on ACA exchanges in 30 states and served 7. 57 million Medicaid members at the end of the first quarter
Interestingly, Medicare Advantage was one of the bright spots for Elevance in its Q2
That's unly to be true for UnitedHealth in its upcoming results
Public relations blems UnitedHealth Group's dismal stock performance isn't solely because of its financial challenges, amid market uncertainty
The company has also taken hits in the news media
Furthermore, Conversely, On May 14, The Wall Street Journal cited unnamed sources and reported that the U
Furthermore, Department of Justice had launched a criminal investigation into UnitedHealth's Medicare Advantage
Additionally, The company quickly responded that it had not been notified by the DOJ any investigation and said, "We stand by the integrity of our Medicare Advantage gram. " The Wall Street Journal ran another negative article UnitedHealth Group's Medicare Advantage operations on July 9, given current economic conditions
Moreover, UnitedHealth again responded publicly, stating that the article relied on "incomplete data, a predetermined narrative and a flawed understanding of how the Medicare Advantage gram works. " The company also noted that "after more than a decade of a similar Department of Justice challenge to our Medicare Advantage, the Special Master there was no evidence to support the claims that we were overpaid or engaged in any wrongdoing (this bears monitoring). " On another negative note, The Guardian ran a story on May 21 that claimed UnitedHealth tried to influence care decisions made by skilled nursing facilities
Furthermore, UnitedHealth rebutted the newspaper's allegations in a public statement
It pointed to the multiyear DOJ investigation in which the government ultimately opted not to pursue any actions against the company
Could UnitedHealth Group put to rest the concerns raised by these media outlets when the company vides its Q2 next week
Furthermore, I doubt it (something worth watching)
However, Buy UnitedHealth Group stock before July 29
It's certainly possible that UnitedHealth Group might der Q2 results that are much better than expected
Nevertheless, Additionally, However, I wouldn't count on it
There's at least one thing the company could do in its Q2 that would calm investors' fears to some extent, though: vide d full-year guidance and details on how it will return to growth next year
Moreover, To be, I'm not sure that this would be enough to spark a rebound for UnitedHealth's languishing stock
But it could at least help investors look past the company's current blems
I don't know if UnitedHealth Group will have any news in its Q2 that makes the stock a no-brainer buy before July 29 (remarkable data)
No one does (something worth watching)
However, I can think of one compelling reason to buy the stock sooner rather than later: Its valuation is attractive relative to its long-term growth spects, amid market uncertainty
Awful, horrible, lousy performances can present awesome, fabulous, magnificent buying opportunities for forward-looking investors.
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