With UnitedHealth Stock Sliding, Have You Assessed The Risk?
UnitedHealth (UNH) stock is down 15.4% in 21 trading days. The recent slide reflects renewed concerns around ongoing DOJ probes, Medicare Advantage pressures, and CEO changes, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where UnitedHealth stands today.
- Size: UnitedHealth is a $280 Bil company with $435 Bil in revenue currently trading at $309.09.
- Fundamentals: Last 12 month revenue growth of 10.5% and operating margin of 6.1%.
- Liquidity: Has Debt to Equity ratio of 0.29 and Cash to Assets ratio of 0.1
- Valuation: UnitedHealth stock is currently trading at P/E multiple of 15.9 and P/EBIT multiple of 10.7
- Has returned (median) 47.1% within a year following sharp dips since 2010. See UNH Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Moderate valuation – making the stock Fairly Priced. For details, see Buy or Sell UNH Stock
That brings us to the key consideration for investors worried about this fall: how resilient is UNH stock if markets turn south? This is where our downturn resilience framework comes in. Suppose UNH stock falls another 20-30% to $216 – can investors comfortably hold on? Turns out, the stock saw an impact slightly better than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- 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 $309.09
| 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 |
Feeling jittery about UNH stock? Consider portfolio approach.
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