Why UnitedHealth Group (UNH) Is Crashing?

We recently published a list of 10 Companies Reflect Market Decline. In this article, we are going to take a look at where UnitedHealth Group Incorporated (NYSE:UNH) stands against other companies that reflect market decline.

The stock market was lackluster on Thursday, with Wall Street’s main indices ending the day with marginal declines.

The Dow Jones Industrial Average dipped by 0.16 percent, the S&P 500 shed 0.21 percent, and the Nasdaq Composite declined by 0.89 percent.

Ten companies mirrored the decline on Wall Street over a series of catalysts including uncertain government policies and disappointing earnings results.

Let’s take a closer look at the worst performers and explore the factors behind their declines.

To come up with Thursday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A senior healthcare professional giving advice to a patient in a clinic.

UnitedHealth Group Incorporated (NYSE:UNH)

UnitedHealth Group Incorporated (NYSE:UNH) dropped its share prices by 6.04 percent on Thursday to end at $510.59 apiece following twin news of worse-than-expected revenues and that it was overcharging patients by more than 1,000 percent for key life-saving drugs.

Earlier this week, UnitedHealth (NYSE:UNH) said revenues settled at $100.81 billion during the fourth quarter of the year, below estimates of $101.76 billion as the company was hit by premiums that were lower than expected.

Net earnings, on the other hand, ended above expectations at $6.81 per share versus analyst expectations of $6.72 apiece.

The company kept its 2025 adjusted net earnings forecast of $29.50 to $30 a share the same.

Meanwhile, the Federal Trade Commission announced on Wednesday that UnitedHealth (NYSE:UNH) was found overcharging life-saving drugs by over 1,000 percent. According to the report, UnitedHealth’s OptumRx, along with Cigna’s Express Scripts and CVS Caremark Rx, were able to collectively pocket $7.3 billion in added revenue above cost during the five-year period of the study through 2022.

Overall, UNH ranks 3rd on our list of companies that reflect market decline. While we acknowledge the potential of UNH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.