UNH Fell 17% In A Month. What To Do Now?.
UnitedHealth (UNH) stock is down 17.0% in 21 trading days. Already own the stock? You might want to consider holding it. Planning to buy? This might be your opportunity. Consider the following data:
- Size: A $230 Bil company with $410 Bil in revenue currently trading at $252.37.
- Fundamentals: Last 12 month revenue growth of 8.1% and operating margin of 8.2%.
- Liquidity: Has Debt to Equity ratio of 0.4 and Cash to Assets ratio of 0.1
- Valuation: Currently trading at P/E multiple of 10.4 and P/EBIT multiple of 7.1
- Has returned (median) 36.6% within a year following sharp dips since 2010. See UNH Dip Buy Analysis.
While we like to buy dips if the fundamentals check out – for UNH, see Buy or Sell UNH Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and UNH drops another 20-30% to $176.66 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience.
Below is a deep dive into UnitedHealth (UNH) downturn resilience – specifically, its performance vs the market during past crises? Turns out, the stock saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered. Before that, as a quick background: UNH a diversified U.S. healthcare company offering health benefit plans, pharmacy care services, retail and home delivery, specialty pharmacy, and clinical programs for various employer types and individuals.
2022 Inflation Shock
- UnitedHealth Stock Pulls Back to Support – Smart Entry?
- UnitedHealth Stock Shares $77 Bil Success With Investors
- UnitedHealth Stock Has Fallen 23%, Time to Enter?
- Is UnitedHealth Stock Built to Withstand More Downside?
- Catalysts That Could Propel UnitedHealth Stock to the Moon
- Is UnitedHealth Stock Heading for a Fall?
- UNH stock fell 19.3% from a high of $555.15 on 31 October 2022 to $447.75 on 13 July 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 17 July 2024
- Since then, the stock increased to a high of $625.25 on 11 November 2024 , and currently trades at $252.37
| UNH | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -19.3% | -25.4% |
| Time to Full Recovery | 370 days | 464 days |
2020 Covid Pandemic
- UNH stock fell 36.2% from a high of $305.31 on 19 February 2020 to $194.86 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 1 June 2020
| UNH | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -36.2% | -33.9% |
| Time to Full Recovery | 70 days | 148 days |
2018 Correction
- UNH stock fell 24.3% from a high of $286.33 on 3 December 2018 to $216.84 on 17 April 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 16 December 2019
| UNH | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -24.3% | -19.8% |
| Time to Full Recovery | 243 days | 120 days |
2008 Global Financial Crisis
- UNH stock fell 72.4% from a high of $58.99 on 21 December 2007 to $16.30 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 2 April 2012
| UNH | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -72.4% | -56.8% |
| Time to Full Recovery | 1229 days | 1480 days |
Worried that UNH could fall much more? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.