Why UnionHealth Group's Stock Surges Today

As of 11:17 a.m. EST Tuesday.UnitedHealth Group (NYSE: UNH)Shares rose 5.7%, after rising 7.7% earlier in the day, as the giant healthcare company reported solid gains in its first quarter 2024 earnings before rock bottom.

What do investors like about UnionHealth Group's first quarter noodles?

Affinity Health's first-quarter revenue was $99.8 billion, an increase of 8.61 TP3T year-over-year. this result was above the Wall Street consensus estimate of nearly $99.3 billion.

Under U.S. Generally Accepted Accounting Principles (GAAP), the company reported a first-quarter net loss of $1.22 billion, or $1.53 per share. This loss represents a sharp decline from the $5.8 billion profit, or $5.95 per share, reported in the same period last year.

However, the loss in the first quarter of 2024 arose from the impact of a cyberattack on Change Healthcare, a company acquired by the UnionHealth Group in 2022. MediaHealth reported adjusted earnings per share of $6.91 for the first quarter, up from $6.26 in the same period last year. This adjusted earnings figure easily exceeded the average analyst estimate of $6.61.

Is it worth buying shares of UnitedHealth Group?

I don't think shares of HealTH Group are a good choice because its first quarter numbers were not good. However, I do think the stock is worth buying for other reasons.

Most importantly, the company's health insurance business and other healthcare divisions should have strong long-term growth prospects as the number of older Americans increases. I'm also bullish on the valuation of Caritas Health. The company's stock currently trades at a forward price-to-earnings ratio of 16, well under theStandard & Poor's 500 The index is trading at a forward P/E ratio of nearly 20.8.

Should you invest $1,000 in Bria Health Group now?

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Keith Speights does not own any of these stocks.The Motley Fool recommends UnitedHealth Group.The Motley Fool has a disclosure policy.

Why is UnitedHealth Group's stock soaring today?