UnitedHealth (UNH) has found itself under a harsh spotlight on Wall Street. Once a darling of defensive investors, UNH stock has been battered and bruised in 2025, tumbling nearly 40% year-to-date (YTD). Among S&P 500 Index ($SPX) constituents, it now ranks among the poorest performers, a dramatic shift for a company long considered a fortress in health insurance.
The trouble began with a disappointing earnings report earlier this year, which sparked fears of mounting costs and operational inefficiencies. Then came the one-two punch: UnitedHealth withdrew its forward guidance and announced a CEO shake-up. As if that were not enough, the U.S. Department of Justice reportedly began probing its billing practices, raising further red flags.
Right now, the question is no longer “what went wrong” but whether there is a light at the end of the tunnel. Some investors, contrarian by nature, argue that much of the damage has already been priced in. If these headwinds prove temporary, this bruised blue chip could offer a rare opportunity.
Headquartered in Minnesota, UnitedHealth is one of the most influential players in the U.S. healthcare system. The company operates a suite of offerings including health maintenance organizations, preferred provider organizations, point-of-service plans, and managed fee-for-service programs.
As of now, UnitedHealth commands a market capitalization of $280 billion. However, its stock performance has been anything but steady. In the past three months alone, UNH has slipped 40%. From its 52-week high of $630.73, the drop extends to 50%, a fall that has rattled long-time shareholders.
Yet, beneath this decline lies a potential value proposition. Currently, UNH trades at 13.7 times forward adjusted earnings and just 0.69 times sales, Both of these valuation metrics sit well below their five-year historical averages, indicating potential upside for those willing to bet on a turnaround.
Adding to its appeal, UnitedHealth pays an annualized forward dividend of $8.51, offering a 2.75% yield. The company has also raised its dividend for 15 consecutive years. Its most recent quarterly dividend of $2.21 was paid on June 24 to shareholders who held the stock as of June 16.
