With a market cap of $494.3 billion, UnitedHealth Group Incorporated (UNH) is a leading diversified healthcare company offering a broad range of health benefits and technology-enabled health services in the U.S. and globally. Operating through two main businesses, UnitedHealthcare and Optum, the company delivers care and coverage solutions to individuals, employers, and public-sector entities.

The largest U.S. health insurer is expected to announce its fiscal Q1 2025 earnings results before the market opens on Thursday, Apr. 17. Ahead of this event, analysts expect UnitedHealth to report a profit of $7.27 per share, up 5.2% from $6.91 per share in the previous year's quarter. It has surpassed Wall Street's bottom-line estimates in the past four quarters. In Q4 2024, UNH exceeded the consensus EPS estimate by 1.5%.

For fiscal 2025, analysts expect the Eden Prairie, Minnesota-based company to report EPS of $29.63, up 7.1% from $27.66 in fiscal 2024. Moreover, EPS is anticipated to grow 12.5% year-over-year to $33.33 in fiscal 2026.

UNH has outperformed the broader markets over the past 52 weeks, with shares up 17.6%, compared to the S&P 500 Index's ($SPX) 3.6% gain and the Health Care Select Sector SPDR Fund's (XLV) marginal dip over the same period. 

Despite reporting a better-than-expected Q4 2024 adjusted EPS of $6.81, UnitedHealth's shares fell over 6% on Jan. 16. Quarterly revenue came in at $100.8 billion, falling short of analysts’ expectations. The company’s medical loss ratio (MLR) rose to 87.6% for the quarter and 85.5% for the full year, signaling elevated healthcare costs. Investor concerns were amplified by government reimbursement pressures and scrutiny over OptumRx’s pharmacy benefit practices despite reaffirmed 2025 guidance of $450 billion - $455 billion in revenue and adjusted EPS of $29.50 - $30.

Moreover, the stock dipped 7.2% on Feb. 21 after the U.S. Department of Justice launched an investigation into its Medicare Advantage billing practices, focusing on diagnosis coding that boosts government payments. The drop was compounded by ongoing antitrust scrutiny and regulatory pushback on its $3.3 billion Amedisys acquisition

Analysts' consensus rating on UNH stock is bullish, with a "Strong Buy" rating overall. Out of 24 analysts covering the stock, opinions include 22 "Strong Buys” and two "Moderate Buys.” The average analyst price target for UNH is $635.12, suggesting a potential upside of 17.5% from current levels.