UnitedHealth shares fall for a fifth straight session on Tuesday, health insurer forecasts 2020 earnings between $16.25 and $16.55 per share

UnitedHealth Group Inc (UNH) issued earlier this week its profit forecast for full year 2020. The health insurer projects full-year adjusted earnings within the range of $16.25 to $16.55 per share, while the median analyst estimate points to earnings of $16.46 per share.

UnitedHealth shares closed lower for a fifth consecutive trading session in New York on Tuesday. It has also been the steepest daily loss since November 11th. The stock went down 0.99% ($2.76) to $276.90, after touching an intraday low at $274.27, or a price level not seen since November 21st ($273.91).

Shares of UnitedHealth Group have risen 11.15% so far in 2019 compared with a 23.39% gain for the benchmark index, S&P 500 (SPX).

In 2018, UnitedHealth Group’s stock went up 13.00%, thus, it outperformed the S&P 500, which registered a 6.24% loss.

At the same time, the insurer said that it forecast full-year revenue within the range of $260 billion to $262 billion, which compares with a median analyst forecast of $260.81 billion.

In October, the company said it was expecting long-term earnings growth of between 13% and 16%.

Analyst stock price forecast and recommendation

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding UnitedHealth Group Inc’s stock price, have a median target of $300.00, with a high estimate of $335.00 and a low estimate of $245.00. The median estimate represents an 8.34% upside compared to the closing price of $276.90 on December 3rd.

The same media also reported that at least 21 out of 27 surveyed investment analysts had rated UnitedHealth Group Inc’s stock as “Buy”, while 4 – as “Hold”.

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