Trump’s ACA remarks send UnitedHealth stock tumbling despite strong earnings
President Trump's proposal to shift health insurance subsidies from the government to consumers has sparked market volatility for insurers operating under the marketplace model. Major companies affected include Centene, Oscar Health, Elevance Health, UnitedHealth Group, Humana, and CVS.
Trump's comments about the Affordable Care Act (ACA) have caused uncertainty in the stock market today, with UnitedHealth Group (UNH) being one of the companies impacted. Despite this, analysts have a 'Moderate Buy' consensus for UNH stock, with a mean price target of $387.73, indicating a potential 14% upside.
UNH's recent quarterly results showed strong earnings per share (EPS) of $2.59, or $2.92 on an adjusted basis, driven by robust momentum in its Optum and UnitedHealthcare businesses. The company has also restored its guidance, projecting 2025 revenue of $445.5 billion to $448.0 billion and a minimum GAAP EPS of $14.65 or $16.25 adjusted EPS. However, the stock has faced pressure due to regulatory scrutiny, margin challenges, and past disappointing quarters, despite signs of operational recovery and a raised annual profit forecast.
Over the past 52 weeks, UNH stock has fluctuated between $234.60 and $622.83, currently down over 30% in 2025. UnitedHealth Group's current valuation is lower, with a price-earnings multiple of 15.43x (TTM) and a forward P/E of 19.88x, compared to its average over the past five years.
UnitedHealth Group, the largest managed healthcare company in the U.S. with a market capitalization over $291 billion, faces stock market volatility due to President Trump's proposal. Despite this, analysts remain optimistic about UNH's stock potential, driven by strong recent earnings and guidance. The company's lower current valuation may present an opportunity for investors, but regulatory challenges and past performance should be considered.
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