This Stock Stumbled Last Year. Now It's the First Half's Best Performing Mega-Cap Healthcare Stock. Is It Too Late to Buy?
This company's recovery efforts are bearing fruit.
Overview
Last year, UnitedHealth Group (NYSE: UNH) faced a series of headwinds that weighed on the stock, dragging it down 34%. The biggest U.S. health insurer saw earnings suffer as it underestimated the cost and use of services, and the company unexpectedly lost its chief executive officer. Investors also grew more cautious as the Justice Department launched a probe into the insurer's Medicare Advantage operations.
But, UnitedHealth launched a series of steps to turn things around, and the plan is bearing fruit. Longtime CEO Stephen Hemsley returned to the leadership role, the company completed an independent audit of its practices and put into place new actions where needed, and earnings are improving. As a result, investors have returned to the stock. It climbed 25% in the first half, for the biggest gain by a mega-cap healthcare stock in the S&P 500.
Details
Is it now too late to buy UnitedHealth stock? Let's find out.
Source
Originally published at www.fool.com.