UnitedHealth Group (NYSE: UNH) is set to release its third-quarter financial results this week, following a period of stock volatility. The company’s shares have lost momentum recently, falling 17.3% from a July high of $458.80. This decline occurred after the stock surged earlier in the year, rising from $256 in March, largely due to a Trump administration decision to finalize a 2.48% average payment increase for Medicare Advantage plans, valued at approximately $13 billion.
The upcoming earnings report will provide insight into the company's revenue and profitability. According to data from Benzinga, the average estimate among 18 analysts is for third-quarter revenue to moderate to $111.49 billion. The most optimistic forecast projects revenue of $114 billion. Earnings per share are expected to rise to $4.15 from $2.92 in the second quarter of 2025. In the previous period, the company reported revenue of $112 billion and earnings from operations of $8 billion, with EPS reaching $6.42.
Options market activity suggests investors anticipate volatility ahead of the release. Implied volatility has jumped to 70%, significantly higher than the historical volatility of 19%. Call activity is concentrated around the $390 level, while put activity is centered near $380. Technical analysis indicates the stock has bottomed at the 200-day Exponential Moving Average and is currently attempting a rebound, remaining above the 50% Fibonacci Retracement level of $356.
