AI Analyst Summary
UnitedHealth Group's 61.5% YoY EPS growth — driven by operational leverage across its Optum and insurance segments — makes it one of the most powerful earnings compounders in large-cap healthcare, trading at a reasonable forward P/E of 17.9x and a PEG of 1.24. Broad analyst conviction (22 Buy, 0 Sell across 26 analysts) and a consensus price target implying ~18% upside reinforce the bull case. The primary risk is that revenue growth of just 0.4% YoY raises questions about top-line sustainability, and any deterioration in medical loss ratios could rapidly compress the margin-driven earnings story.
Fundamentals
Pe
Trailing P/E 25.8x / Forward P/E 17.9x · 4.0/5
Trailing P/E of 25.8x is reasonable for a large-cap healthcare compounder; forward P/E of 17.9x implies meaningful earnings expansion ahead. Valuation is modestly above the broader healthcare sector median but justified by scale and earnings trajectory.
Peg
PEG 1.24 · 4.0/5
PEG of 1.24 is comfortably below 1.5, indicating the market is not egregiously pricing in growth. Given the 61.5% YoY earnings surge, investors are receiving solid growth at a fair price — constructive signal for long-term holders.
Analyst Rating
Buy consensus (1.6) · 4.0/5
Consensus of 1.6 from 26 analysts (22 Buy, 5 Hold, 0 Sell) reflects strong and broad institutional conviction. No Sell ratings is a notable positive; the slight distance from 1.5 keeps this at a 4 rather than 5.
Earnings Trend
EPS growth +61.5% YoY · 5.0/5
61.5% YoY earnings growth is exceptional — well above the >25% threshold for a top score. Revenue growth of 0.4% signals that earnings expansion is being driven by margin improvement and operational leverage rather than top-line acceleration, which warrants monitoring but does not diminish the earnings signal.
Price Target Beat
4 of 4 quarters beat (last 4 reported) · 3.0/5
A perfect 4-of-4 recent beat rate is encouraging, but the scoring rubric requires 8-quarter history for a top score. With only 4 quarters of available data, a neutral score of 3 is applied per guidelines, with a positive tilt given the clean recent record.
Management
Consistent executor with strong capital discipline · 4.0/5
Flawless 4-of-4 recent EPS beat record and a bullish analyst consensus with zero Sell ratings reflect high institutional confidence in management's execution. Capital allocation appears disciplined given margin expansion outpacing revenue growth. Scored 4 rather than 5 given limited 8-quarter history available.
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