Is UnitedHealth Stock Built to Withstand More Downside?
UnitedHealth (UNH) stock is down 18.1% in 21 trading days. The recent slide reflects renewed concerns around proposed flat Medicare Advantage rates and surging medical costs, 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 $253 Bil company with $435 Bil in revenue currently trading at $278.91.
- Fundamentals: Last 12 month revenue growth of 10.5% and operating margin of 6.1%.
- Liquidity: Has Debt to Equity ratio of 0.32 and Cash to Assets ratio of 0.1
- Valuation: UnitedHealth stock is currently trading at P/E multiple of 14.4 and P/EBIT multiple of 9.6
- Has returned (median) 40.8% within a year following sharp dips since 2010. See UNH Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Low valuation – making the stock Attractive. 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 $195 – 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.
- UnitedHealth Stock Has Fallen 23%, Time to Enter?
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- Is UnitedHealth Stock Heading for a Fall?
- What Just Happened With UnitedHealth Stock?
- UnitedHealth Stock Has Fallen 21%, Time to Enter?
- UnitedHealth Stock Drop Looks Sharp, But How Deep Can It Go?
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 $278.91
| 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 | 1,229 days | 1,480 days |
Feeling jittery about UNH stock? Consider portfolio approach.
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