UnitedHealth (UNH) Share Price Surges after Strong Report

UnitedHealth shares surged Tuesday, rising more than 5% after the health care giant delivered stronger-than-expected first-quarter 2024 results:

→ earnings per share: actual = USD 6.91, expected = USD 6.61, last quarter = USD 6.16;
→ gross income: actual = USD 94.4 billion, expected = USD 92.1 billion.

UnitedHealth CEO Andrew Whitty said health care costs rose sharply last year, and he attributed much of the rise to the effects of the Covid-19 pandemic.

Also adding positive news to investors was UnitedHealth Group's handling of the Feb. 21 cyberattack on its Change Healthcare subsidiary, which disrupted hospital and pharmacy operations for more than a week and cost an estimated USD 872 million.

Technical analysis of the UNH stock chart shows that:
→ starting in 2022, the price moves within the range between support at USD 450 and resistance at USD 550 per share;
→ false breakouts of the indicated levels occurred repeatedly;
→ as a result of the publication of the report, another false breakdown of support was formed at USD 450 per UNH share;
→ growth after the report occurred with a gap in the area of USD 450-465, which can serve as support;
→ it is possible that a test of the gap will form on the chart and growth will at least reach the mid-channel level of USD 500 per share.

According to analysts surveyed by TipRank, the average price forecast for UMH shares is USD 591.29 in 12 months (more than +25% from the current price).

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