UNH

UnitedHealth Group Forecasts First Annual Revenue Decline in Decades

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Image Source: TradingView By Brian Nelson, CFA On January 27, UnitedHealth Group (UNH) reported mixed results for its fourth quarter of 2025 with non-GAAP earnings per share coming in-line with expectations, but revenue missing the mark. Consolidated revenues for 2025 were $447.6 billion, representing 12% year-over-year growth. For 2025, earnings from operations were $19 billion, and the company posted a net margin of 2.7%, while cash flow from operations was $19.7 billion, or 1.5x net income. For 2025, UnitedHealthcare expanded revenues 16%, while Optum expanded revenues 7% on the year. Full year adjusted net earnings were $16.35 per share. Management had the following to say about the results: We confronted challenges directly and finished 2025 as a much stronger company, … Read more

UnitedHealth Group Raises Full Year 2025 Earnings Outlook

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Image Source: TradingView By Brian Nelson, CFA On October 28, UnitedHealth (UNH) reported better than expected third quarter results, with revenue and non-GAAP earnings per share exceeding the consensus forecast. Third-quarter revenue grew 12% year-over-year, to $113.2 billion, while adjusted earnings came in at $2.92 per share. In the quarter, UnitedHealthcare revenues grew 16%, while Optum revenues grew 8% year-over-year. Cash flow from operations were $5.9 billion, or 2.3x net income. Its medical care ratio (MCR) of 89.9% was in line with expectations that it outlined in the second quarter. Management had the following to say about the quarter and outlook: We remain focused on strengthening performance and positioning for durable and accelerating growth in 2026 and beyond, and our … Read more

Thinking Slow: 3 Research Blind Spots That Changed the Investment World

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Dear members: — Daniel Kahneman in his text Thinking, Fast and Slow (1) divided the human psyche into two systems. The first system is instinctive and emotional, often set on autopilot, while the second system is slower and more logical, requiring a calculating conscious. Many of the maxims the investment world takes for granted today suffer from conclusions that are made rapidly, almost without thinking, driven by our first system, creating what I call research blind spots. — In World War II, Allied bombing raids were suffering from very high casualty rates. It was estimated that for those pilots that were flying at the beginning of the war, only about 10% survived, a terrible loss rate. Bombing was crucial to the Allied … Read more

UnitedHealth Group’s Restored 2025 Outlook Falls Below Consensus Estimates

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Image Source: TradingView By Brian Nelson, CFA UnitedHealth Group (UNH) reported disappointing second quarter results and issued an outlook for 2025 that came in below expectations. The firm’s second-quarter 2025 revenue grew $12.8 billion year-over-year to $111.6 billion thanks to growth at both UnitedHealthcare and Optum. Second-quarter earnings from operations, however, came in at $5.2 billion, down from $7.9 billion in the same period a year ago. Net earnings were $4.08 per share, below the consensus estimate of $4.45 per share. UnitedHealth Group’s second quarter consolidated medical care ratio of 89.4% was up 430 basis points year-over-year. Management had the following to say about the results: UnitedHealth Group has embarked on a rigorous path back to being a high-performing company … Read more

Dividend Increases/Decreases for the Week of June 6

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Below we provide a list of firms that raised their dividends during the week ending June 6. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          Autolive (ALV): now $0.85 per share quarterly dividend, was $0.70. Banco Bradesco (BBD): now $0.0032 per share monthly dividend, was $0.0022. Brookfield Corporation PFD CL A SR 42 (BN.PF.G:CA): now CAD 0.35 per share quarterly dividend. Consolidated Water (CWCO): now $0.14 per share quarterly dividend, was $0.11. Essential Properties (EPRT): now $0.300 per share quarterly dividend, was $0.295. Genpact (G): now $0.17 per share … Read more

3 Undervalued Stocks to Consider Buying Now

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Dear readers:   With the markets retracing most of their recent drawdown, we’re taking a victory lap as we didn’t panic, nor should have you. We highlighted our wait-and-see approach amidst the worst of the pullback, and we expect the Magnificent 7 (large cap growth and big cap tech) to continue to propel the markets higher, as they have done.   We’ve been busy rolling valuation models as we finetune our assumptions for a great number of companies under coverage. While doing so, we came across three undervalued stocks that are also included in the simulated newsletter portfolios. We think they’re prime for highlight.   The three stocks are UnitedHealth Group (UNH), Nvidia (NVDA) and Alphabet (GOOG). We spend a lot of time on discounted cash-flow valuation, … Read more

UnitedHealth CEO Steps Down; Company Suspends Guidance

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Image Source: TradingView By Brian Nelson, CFA On May 13, UnitedHealth Group (UNH) announced that its CEO Andrew Witty will step down for personal reasons. Taking his place is Stephen Hemsley, who served as the company CEO from 2006-2017. Hemsley had the following to say about the change in the executive suite: We are grateful for Andrew’s stewardship of UnitedHealth Group, especially during some of the most challenging times any company has ever faced. The Board and I have greatly valued his leadership and compassion as chief executive and as a director and wish him and his family the best. UnitedHealth Group has tremendous opportunities to grow as we continue to help improve health care and to perform to our … Read more

Magnificent 7 Earnings Reports Not Bad Thus Far

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By Brian Nelson, CFA   Shortly after Trump’s Liberation Day, where the President unveiled lofty tariffs on numerous countries, we released our wait-and-see outlook for the equity markets, which thus far has proven to be the right move, with the markets largely recovering from the depths reached in April. The S&P 500 (SPY), for example, is down just 3.3% year-to-date, excluding dividends.   A lot has happened since Liberation Day, including easing of tariffs to a 10% baseline for most, if not all, countries, with the key exception of China, where tariffs remain extremely elevated and prohibitive. Many countries are now reportedly negotiating trade agreements with the White House, and we expect China to be added to that list soon, even if … Read more

UnitedHealth Group Lowers 2025 Outlook

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Image: UnitedHealth’s shares were pummeled after it lowered its 2025 earnings outlook. By Brian Nelson, CFA UnitedHealth Group (UNH) reported dismal first-quarter 2025 results that came in lower than expected on both the top and bottom lines. Revenues of $109.6 billion grew $9.1 billion year-over-year, while first quarter earnings were $6.95 per share, with adjusted earnings coming in at $7.20 per share. Management shared its disappointment in the commentary in the press release: UnitedHealth Group grew to serve more people more comprehensively but did not perform up to our expectations, and we are aggressively addressing those challenges to position us well for the years ahead, and return to our long-term earnings growth rate target of 13 to 16%. UnitedHealth Group … Read more

Trump Tariffs Higher than Expected; What We’re Doing

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By Brian Nelson, CFA The Trump tariff increases came in larger than what we were expecting, and it remains to be seen how they will flow through the global economy, as we monitor potential retaliatory tariffs from other countries. As it relates to the equity markets, we’re taking a wait and see approach at the moment as we monitor new policy changes related to trade, immigration, fiscal (tax), and regulations. In short, we’re not overreacting to the sell off as we won’t have a great handle on the tariff impact to companies for a few quarters when they report results post-tariff increases. That said, we’re expecting continued market volatility, with meaningful risk to the downside, before trade uncertainty alleviates in … Read more