Copyright Forbes
UnitedHealth Group stock (NYSE: UNH) has declined by 7% over the past month. This downturn is attributed to several significant investor concerns, including rising medical costs within its Medicare Advantage plans, ongoing regulatory and legal scrutiny, and margin pressures in the Optum division. These challenges have overshadowed the positive news delivered in the company's third-quarter earnings report. Given this recent fall, it is an opportune time to evaluate how UNH stock is currently performing relative to its peers. This is how UnitedHealth stock compares to its competitors in terms of size, valuation, growth, and margins. UNH maintains the highest operating margin among its peers at 6.1%. UNH’s revenue growth of 10.5% over the past 12 months is robust, surpassing CVS but trailing behind CNC and MOH. UNH’s stock has decreased by 46.5% over the last year, underperforming compared to CVS and CNC, and is currently trading at a PE ratio of 16.9. For some background, UnitedHealth offers a variety of health care services, including consumer health benefit plans for different employers and individuals, as well as pharmacy care services such as retail, home delivery, specialty, and clinical programs. Investing in a single stock can be risky; however, a broad, diversified strategy can offer significant value. If you’re looking for potential growth with reduced volatility compared to holding an individual stock, consider the Trefis High Quality Portfolio (HQ). The HQ has outperformed its benchmark - a mix of the S&P 500, Russell, and S&P midcap indices - achieving returns that have exceeded 105% since it was established. Effective risk management is crucial - think about the potential long-term performance of a blend consisting of 10% commodities, 10% gold, and 2% cryptocurrency alongside HQ’s performance metrics. Why does this matter? UNH recently fell by 8.7% in a month - comparing it to peers puts stock performance, valuation, and financials into perspective - indicating whether it is genuinely outperforming, underperforming, and crucially, can this trend persist? Read Buy or Sell UNH Stock to determine if UnitedHealth is indeed a falling knife. Sharp declines often present rebound opportunities - observe how the stock has dipped and recovered historically through the UNH Dip Buyer Analysis perspective. MORE FOR YOU Revenue Growth Comparison Operating Margin Comparison PE Ratio Comparison
