10 Worst Performing Dow Stocks Year-to-Date

7. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 114

Share Price Performance Year-to-Date: 5.96%

UnitedHealth Group Incorporated (NYSE:UNH) is a multinational health insurance and services company. It operates primarily under two brands: UnitedHealthcare, which offers a range of insurance products, and Optum, which provides various healthcare services. It is one of the largest healthcare companies by market cap. It is the 7th worst-performing Dow stock.

UnitedHealth (NYSE:UNH) faced several challenges in the year that affected its share price, which included its subsidiary, Charge Healthcare, experiencing a cyber attack in mid-February that disrupted its claims processing. Then on February 28, WSJ reported that the U.S. Justice Department has launched an antitrust investigation into the company, focusing on its relationships between the UnitedHealthcare insurance unit and its Optum health services division.

Investigators were examining how Optum’s acquisitions of physician groups may affect competition, especially whether UnitedHealthcare favors these groups in contracting. The probe also included scrutiny of Medicare billing practices related to documenting patient illnesses.

In addition, UnitedHealth (NYSE:UNH) reported its earnings on October 14, after which, the company’s stock experienced a huge plunge. While the company reported strong earnings, it set its 2025 earnings outlook at a maximum of $30 per share, falling short of Wall Street’s consensus estimate of $31.17.

Although the insurance provider’s 2024 guidance was in line with expectations, CEO Andrew Witty noted that the conservative forecast is largely due to factors affecting its UnitedHealthcare unit, including payment cuts from Medicare, changes related to the Inflation Reduction Act, and discrepancies between Medicaid rates and medical benefits.

Despite that, on October 18, The Fly reported that TD Cowen increased its price target for UnitedHealth (NYSE:UNH) from $601 to $609 and maintained a Buy rating on the stock. The firm adjusted its financial model after reviewing the company’s Q3 results and is now looking forward to the Investor Day on December 4th. At that event, the firm expects to get clearer insights into the company’s earnings per share for 2025, membership in Medicare Advantage plans, and updates on the Medicaid rate situation.