Since April 11, 2025, UnitedHealth Group (NYSE: UNH) has undergone a prolonged and concerning decrease, culminating in a sharp 5.71% drop on May 21, finishing at $302.98. This represents one of the steepest daily selloffs in the stock’s history and brings UNH to levels not seen in five years. The extended slump, prompted by disappointing Q1 results, reduced full-year guidance, and growing operational concerns, has now erased 42% of the stock’s value year-to-date and 43% over the last 12 months. In this thorough assessment, we investigate whether one should Buy or Fear UnitedHealth stock.

This significant decline is noteworthy even within a difficult healthcare landscape when viewed in comparison with some of its competitors. Cigna has demonstrated unexpected resilience, increasing by 4% in 2025 and 5.8% over the previous year. Molina Healthcare is also holding strong, with a 2.4% increase year-to-date and a slight annual decline of 3%. At the same time, CVS Health and Centene have exhibited relative stability. The only outlier is Humana, which, like UnitedHealth, has experienced a substantial drop of over 45%, primarily due to pressures on Medicare Advantage. In this peer comparison, UnitedHealth’s correction appears both sector-driven and significantly more pronounced.

In spite of the market's adverse response, UnitedHealth seems attractively priced compared to the broader market. The stock is trading at a , significantly lower than the . Its , well beneath the S&P’s 24.5, and its , in contrast to 17.6 for the index. This notable valuation discount indicates that much of the operational risk may already be incorporated into the price, presenting long-term investors a potential entry opportunity.

In terms of revenue, UnitedHealth continues to exhibit solid growth. The company’s top line has expanded at an average . In the past 12 months alone, revenue increased . The latest quarter further highlighted this trend, with revenue rising . These numbers demonstrate the company’s capacity to sustain growth while facing considerable market challenges.

Where UnitedHealth continues to fall short is in profitability. Over the previous four quarters, the company achieved , translating to a . , resulting in a , while , corresponding to a . These margins indicate that UnitedHealth is not effectively converting its revenue scale into margin efficiency, a concern obscuring its earnings outlook.

Despite the profit pressures, UnitedHealth’s balance sheet remains robust. As of the latest quarter, the company had against a (as of April 30, 2025), leading to a —a moderate level. With , which represents , UnitedHealth sustains strong liquidity and the financial flexibility to navigate near-term disruptions.

One of UnitedHealth’s more enduring strengths is its resilience during past market downturns. During the , the stock fell , which is less than the , and it rebounded to its pre-crisis peak by , achieving a post-crisis high of before its current decline. During the , UNH decreased by but recovered to previous highs by . Even amid the , when the stock plummeted , it managed to fully bounce back by April 2012. This history underscores UnitedHealth’s capability to endure systemic shocks better than many competitors.

Although UnitedHealth’s sharp stock decline and profitability issues are legitimate concerns, its ongoing revenue growth, solid balance sheet, and historical resilience imply that the selloff may be excessive. The company’s deep valuation discount relative to the broader market provides an additional layer of downside protection for long-term investors. As management focuses on restoring operational efficiency, the stock may present a compelling recovery narrative for those prepared to weather the storm.

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