While the current broad market sell-off dominates headlines, there's still value in looking at specific laggards from the major indexes. Among the blue-chip-laden Dow Jones Industrial Average (^DJI -1.30%), the two worst-performing stocks in the month of February were UnitedHealth Group (UNH 0.09%) and Salesforce (CRM -4.51%). They declined 12.5% and 12.8% last month, respectively, versus the Dow's much more modest dip of 1.6%. UnitedHealth's woes started early in February following hedge fund manager Bill ...

Core Viewpoint - Rosen Law Firm is investigating potential breaches of fiduciary duties by the directors and officers of UnitedHealth Group Incorporated in relation to a Department of Justice investigation into the company's billing practices [1] Group 1 - The investigation by Rosen Law Firm is focused on UnitedHealth Group's billing practices and the possible implications for its directors and officers [1] - Investors who own shares of UnitedHealth are encouraged to seek more information and can contact Rosen Law Firm directly [2] - Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements and recognition in the field [3]

Group 1: UnitedHealth Group Inc. (UNH) - UnitedHealth's shares have outperformed the Zacks Medical - HMOs industry over the past year, with a growth of 1% compared to a decline of 3.4% in the industry [4] - The company's revenue growth is supported by a strong market position, new deals, renewed agreements, and expansion of service offerings [4] - Adjusted net earnings per share are anticipated to be in the range of $29.50 to $30 for 2025, backed by a sturdy balance sheet that allows for investments and capital deployment through buybacks and dividends [5] Group 2: SAP SE (SAP) - SAP's shares have outperformed the Zacks Computer - Software industry over the past year, with a growth of 48% compared to 2.6% in the industry [7] - The company is benefiting from growing cloud demand, particularly through its Rise with SAP and Grow with SAP solutions, which are driving cloud revenues [7] - SAP's revised 2025 outlook expects cloud and software sales to be in the range of €33.1 billion to €33.6 billion, an increase from the previous forecast of €29.83 billion [9] Group 3: Toyota Motor Corp. (TM) - Toyota Motor's shares have outperformed the Zacks Automotive - Foreign industry over the past six months, with a growth of 9.3% compared to 9% in the industry [10] - The surge in hybrid adoption is driving sales, supported by strategic initiatives aimed at growth and profitability [10] - Significant investments in human capital and expansion initiatives are expected to weigh on operating profits this fiscal year, alongside rising debt levels [12] Group 4: Better Choice Company Inc. (BTTR) - Better Choice has underperformed the Zacks Retail - Miscellaneous industry over the past year, with a decline of 75% compared to 8.2% in the industry [13] - The company achieved its first profitable quarter in Q3 2024, with adjusted EBITDA exceeding $0.2 million and gross margins reaching 40% [14] - The Asia-Pacific market remains a key driver for growth, supported by trends in pet ownership and demand for premium brands [15]

Core Viewpoint - The article highlights two Dow Jones Industrial Average stocks, Johnson & Johnson and UnitedHealth Group, as strong investment opportunities, while Boeing is identified as a stock to avoid due to ongoing challenges and self-inflicted issues. Group 1: Johnson & Johnson - Johnson & Johnson is characterized as a low-volatility stock, with shares being less than half as volatile as the S&P 500 [3] - The company has a consistent demand for its healthcare products, leading to predictable cash flow, regardless of economic conditions [4] - A strategic shift towards brand-name drug development has resulted in innovative medicine accounting for nearly two-thirds of net sales [5] - Johnson & Johnson has achieved 35 consecutive years of adjusted operating earnings growth prior to the COVID-19 pandemic, showcasing its sustainable growth [6] - The company has had only 10 CEOs in its 139-year history, contributing to stability in leadership and growth initiatives [7] - Johnson & Johnson's forward price-to-earnings (P/E) ratio is below 15, and it has increased its quarterly dividend for 62 consecutive years, resulting in a 3% yield [8] Group 2: UnitedHealth Group - UnitedHealth Group is another healthcare stock recommended for purchase, despite a 24% decline from its all-time high [9] - The decline is attributed to a Department of Justice investigation, the death of a key executive, and a cybersecurity attack affecting millions [9] - The company has denied allegations regarding its Medicare Advantage insurance operations, indicating strong premium pricing power in the healthcare insurance sector [10] - UnitedHealth's Optum subsidiary is a significant growth driver, providing various healthcare services and growing sales faster than the traditional insurance segment [11] - The demand for healthcare services remains consistent, making UnitedHealth's business model resilient to economic fluctuations [12] - The company's shares are trading at a forward P/E multiple of 14, representing a 28% discount to its five-year average [13] Group 3: Boeing - Boeing is identified as a stock to avoid due to significant challenges, including a 60% decline from its all-time high and ongoing production issues [14][15] - The company has reported net losses totaling $35.7 billion over six consecutive years, primarily due to self-inflicted mechanical and delivery issues [16] - Boeing's balance sheet is concerning, having issued $18.2 billion in common stock to strengthen its financial position amid production challenges [17] - The Federal Reserve Bank of Atlanta's GDPNow forecast predicts a 2.8% contraction in U.S. GDP, historically correlating with poor performance for Boeing during recessions [18] - Investors are advised to adopt a wait-and-see approach regarding Boeing's recovery from its production issues and balance sheet concerns [19]

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Membership and Service Coverage - UnitedHealthcare Employer & Individual provides access to medical services for 29.7 million people as of December 31, 2024[33]. - UnitedHealthcare Medicare & Retirement served 7.8 million people through its Medicare Advantage products as of December 31, 2024[40]. - UnitedHealthcare enrolled 10.1 million people in the Medicare Part D programs as of December 31, 2024[42]. - UnitedHealthcare Medicare & Retirement served 4.3 million seniors through various Medicare Supplement products as of December 31, 2024[43]. - UnitedHealthcare Community & State served more than 7.4 million people as of December 31, 2024[45]. - UnitedHealthcare Community & State participated in programs in 33 states and the District of Columbia as of December 31, 2024[45]. - UnitedHealthcare Community & State served 1.2 million people through Medicaid expansion programs in 20 states under the ACA as of December 31, 2024[45]. - Through the HouseCalls program, nurse practitioners performed 2.9 million clinical preventive home care visits in 2024[41]. Financial Performance - Total revenues for the year ended December 31, 2024, were $400.3 billion, an increase of 7.7% from $371.6 billion in 2023[250]. - Net earnings attributable to UnitedHealth Group common shareholders for 2024 were $14.4 billion, a decrease of 35.5% from $22.4 billion in 2023[250]. - The company's medical costs payable increased to $34.2 billion in 2024 from $32.4 billion in 2023, reflecting a growth of 5.7%[248]. - Basic earnings per share attributable to UnitedHealth Group common shareholders decreased to $15.64 in 2024 from $24.12 in 2023, a decline of 35.5%[250]. - Net earnings for 2024 were $15,242 million, a decrease of 34.2% compared to $23,144 million in 2023[252]. - Comprehensive income attributable to UnitedHealth Group common shareholders was $18,045 million in 2024, down from $23,747 million in 2023, reflecting a decline of 24.0%[252]. - Total comprehensive income for 2024 was $18,882 million, down from $24,510 million in 2023, representing a decrease of 23.1%[252]. - Cash flows from operating activities for 2024 were $24,204 million, down from $29,068 million in 2023, a decrease of about 17%[256]. Investment and Financial Assets - As of December 31, 2024, the company's goodwill and other intangible assets had a carrying value of $130 billion, representing 44% of total consolidated assets[121]. - The company had $33 billion in financial assets with interest rates varying with market rates, impacting investment income[230]. - The company has $27 billion in financial liabilities at interest rates that also vary with market rates, which could affect cash flows[230]. - The fair value of the company's fixed-rate investments and debt is sensitive to market interest rate changes, with $46 billion in fixed-rate debt securities and $49 billion in non-swapped fixed-rate term debt[231]. - The company reported total unrealized gains (losses), net of tax, of $22 million in 2024, a significant decrease from $876 million in 2023[252]. - The company incurred cash flows used for investing activities of $20,527 million in 2024, compared to $15,574 million in 2023, an increase of about 31.9%[256]. - As of December 31, 2024, total pharmaceutical manufacturer rebates receivable amounted to $12.5 billion, up from $11.0 billion in 2023, representing a 13.6% increase[285]. - The Company reported prepaid expenses and other current assets, including pharmaceutical drug and supplies inventory, of $3.8 billion as of December 31, 2024, compared to $2.8 billion in 2023, indicating a 35.7% increase[286]. Regulatory and Compliance Risks - The company is subject to various federal and state regulations that may impact its ability to manage pharmacy provider networks and drug costs[62]. - The company is subject to uncertain and rapidly evolving laws and regulations related to health data and health information technologies, which could materially affect its competitive landscape and compliance requirements[92]. - The company faces regulatory risks in its pharmacy care services, which could affect operational performance and financial results[140]. - Changes in Medicaid eligibility and reimbursement rates could materially affect the company's revenues and member enrollments[134]. - The company must maintain quality star ratings to qualify for bonus payments under Medicare Advantage, impacting revenue potential[136]. Competition and Market Position - The company operates in a highly competitive market, facing competition from both startups and established Fortune 50 enterprises[68]. - The company faces significant competition in all markets, and its competitive position may be adversely affected by significant merger and acquisition activity among competitors[103]. - The company’s success depends on its ability to develop and deliver innovative products and services to meet evolving market demands, particularly in value-based care models[104]. Operational and Strategic Risks - The company employs extensive judgment in estimating benefit expense payments, which are subject to considerable variability[85]. - The integrity and availability of data are critical for the company's operations, and failures could lead to significant adverse consequences[88]. - The company relies on third-party vendors to process, store, and transmit large amounts of data, which exposes it to risks outside its direct oversight and control[95]. - The company faces risks in managing strategic alliances and acquisitions, which could adversely affect its operations and financial position[111]. - Successful acquisitions require effective integration into existing operations, and failure to do so may lead to increased costs and operational risks[112]. - Public health crises and natural disasters could materially impact the company's business operations and financial performance[113]. - Unfavorable economic conditions may lead to reduced demand for the company's products and services, affecting premium and fee revenues[115]. - A prolonged unfavorable economic environment could constrain government budgets, resulting in reduced reimbursements for health care coverage programs[116]. Employee and Workforce Management - The company has a workforce of nearly 400,000 employees, including over 140,000 clinical professionals, focused on improving health outcomes[71]. - The company prioritizes pay equity and regularly evaluates compensation practices based on performance, age, experience, gender, ethnicity, and race[73]. - The company is committed to developing an inclusive environment and maintaining a diverse talent pipeline through various programs[72]. Cybersecurity and Data Protection - The company has previously reported a cyberattack in 2024 involving its Change Healthcare business, which compromised protected health information[93]. - The company relies on legal protections for its proprietary rights, and any failure to protect these rights could adversely affect its market position[122].

Core Viewpoint - Rosen Law Firm is investigating potential breaches of fiduciary duties by the directors and officers of UnitedHealth Group Incorporated in relation to a Department of Justice investigation into the company's billing practices [1]. Group 1 - The investigation by Rosen Law Firm focuses on UnitedHealth Group's compliance with fiduciary duties amid allegations regarding its billing practices [1]. - The firm encourages current shareholders of UnitedHealth to seek more information and participate in the investigation [2]. - Rosen Law Firm has a strong track record in securities class actions, having secured significant settlements for investors, including over $438 million in 2019 [3].

Core Viewpoint - UnitedHealth Group's stock price dropped significantly following reports of a DOJ investigation into its Medicare billing practices, raising concerns about potential fraud and improper revenue recognition [1][3]. Group 1: Investigation and Allegations - The DOJ has initiated a civil fraud investigation into UnitedHealth's practices related to recording diagnoses that lead to additional payments for Medicare Advantage plans [1][2]. - Allegations include that UnitedHealth trained doctors to document revenue-generating diagnoses, some of which were deemed obscure or irrelevant, and used software to suggest conditions for billing purposes [3][4]. - The investigation is focused on whether UnitedHealth improperly billed the federal government for services to Medicare Advantage enrollees, potentially leading to illegal revenue recognition in financial statements [2][5]. Group 2: Market Reaction and Financial Impact - Following the news of the investigation, UnitedHealth's share price fell by $36, a decrease of 7%, resulting in a loss of over $33 billion in shareholder value in one day [1][3]. - The investigation and its implications have raised concerns about the legality of UnitedHealth's Medicare Advantage practices and the accuracy of its reported revenues [5][6]. Group 3: Regulatory Scrutiny - Senator Chuck Grassley has demanded that UnitedHealth review all diagnoses submitted to the Centers for Medicare & Medicaid Services (CMS) and identify any that are obscure, irrelevant, or inaccurate [4]. - The HHS Office of Inspector General previously reported that UnitedHealth received more payments from CMS for diagnoses made during in-home health risk assessments than any other Medicare Advantage Organization, raising concerns about the accuracy of these diagnoses [6].

Core Viewpoint - UnitedHealth Group's stock has experienced significant volatility, with a recent drop of 30% following a 45% rally, leading to a 12-month price forecast of $629.32, indicating a potential upside of 35.17% based on analyst ratings [1][2][6]. Stock Performance - The stock gapped down more than 12% in one day due to a new investigation by the Department of Justice into its Medicare Advantage business, which raised concerns about questionable diagnoses for larger government payments [2][3]. - Despite the drop, UnitedHealth rebounded 7% by the end of the trading session, suggesting that buyers are entering the market [3][11]. Earnings and Guidance - UnitedHealth's January earnings report showed an earnings beat, although revenue slightly missed expectations, breaking a streak of several quarters of positive results [4]. - Management provided strong forward guidance, indicating confidence in sustained growth throughout the year, despite the recent stock selloff [5]. Analyst Sentiment - Analysts remain bullish on UnitedHealth, with firms like Wells Fargo, Barclays, KeyCorp, and Cantor Fitzgerald maintaining Buy ratings and price targets between $650 and $700, suggesting over 50% upside from recent lows [6][7]. - The stock's current trading level below $470 presents an attractive entry point for investors, given the valuation disconnect with mega-cap stocks [7]. Market Conditions - The stock is technically oversold, with an RSI of 27, which typically leads to sharp rebounds in fundamentally strong stocks [11]. - The massive selloff has created a compelling trade setup, with analysts seeing significant upside potential and strong fundamental momentum [13].

Core Insights - JR Research is recognized as a top analyst in technology, software, and internet sectors, focusing on growth and GARP strategies [1] - The investment approach emphasizes identifying attractive risk/reward opportunities with robust price action to generate alpha above the S&P 500 [1][2] - The investment group Ultimate Growth Investing specializes in high-potential opportunities across various sectors with a focus on strong growth potential and contrarian plays [3] Investment Strategy - The strategy combines price action analysis with fundamental investing to identify growth opportunities with significant upside potential [2] - The focus is on avoiding overhyped and overvalued stocks while targeting battered stocks that have recovery potential [2] - The investment outlook typically spans 18 to 24 months for the thesis to materialize [3] Target Audience - The group is designed for investors looking to capitalize on growth stocks with strong fundamentals, buying momentum, and turnaround plays at attractive valuations [3]