Why UnitedHealth Group Stock Just Bounced Back

Core Viewpoint - UnitedHealth Group's stock experienced a significant decline of nearly 20% following a Q4 earnings report that showed a minor sales miss and a drastic drop in GAAP profits, which fell nearly 100% year over year to just $0.01 per share [1]. Group 1: Earnings Report Impact - UnitedHealth's non-GAAP earnings met analyst expectations, but GAAP earnings were severely disappointing [1]. - The stock is showing signs of recovery, with a 4% increase noted the following day, although this is minimal compared to the previous day's losses [3]. Group 2: Analyst Reactions - Following the earnings report, seven analysts have lowered their price targets for UnitedHealth stock, yet all still value it above the current trading price of $294 [4]. - Analysts' price targets vary, with Bank of America setting a target of $315 and Cantor Fitzgerald predicting a rise to $440, indicating a potential 50% profit from current levels [6]. Group 3: Investment Considerations - UnitedHealth stock is trading at 16.7 times forward earnings and offers a 3.1% dividend yield, with expectations to triple profits over the next five years [6]. - Despite the recent downturn, the stock is still viewed as a buy by most analysts [5].