UnitedHealth Is the Worst Dow Jones Stock Thursday. Here's Why

Core Viewpoint - UnitedHealth Group reported mixed fourth-quarter results, with revenue growth but a miss on revenue expectations, leading to its underperformance in the Dow Jones index [1][3]. Financial Performance - Revenue for the fourth quarter increased by 6.8% year over year to $100.8 billion, driven by a 4.4% rise in premiums to $76.5 billion [1]. - Earnings per share (EPS) rose by 10.6% from the previous year to $6.81, exceeding Wall Street's expectation of $6.72 [3]. - However, the revenue fell short of analysts' expectations of $101.8 billion, marking the first top-line miss since Q2 2020 [3]. Future Outlook - UnitedHealth reaffirmed its 2025 outlook, projecting revenue between $450 billion to $455 billion and EPS between $29.50 to $30 [4]. Market Performance - Over the past 12 months, UnitedHealth has underperformed the market, with a total return of 6% compared to the S&P 500's 26% gain [5]. - Despite this, Wall Street remains bullish on the stock, with an average analyst target price of $639.16, indicating an implied upside of over 20% [6]. Analyst Insights - Analysts highlight UnitedHealth's strong diversification, management team, and growth potential, particularly through its Optum business, which complements its core operations [7][8].