Home / Business and Economy / UNH Beats JNJ: Healthcare Stocks Clash on Earnings
UNH Beats JNJ: Healthcare Stocks Clash on Earnings
14 Oct
Summary
- UnitedHealth Q3 earnings beat estimates, signaling recovery.
- Johnson & Johnson's growth showed mixed momentum.
- UnitedHealth offers a more attractive valuation and higher yield.
UnitedHealth Group (UNH) and Johnson & Johnson (JNJ) both reported their third-quarter earnings on Tuesday, with both companies subsequently raising their full-year earnings projections. However, their performance reports presented a stark contrast.
UnitedHealth's adjusted Q3 earnings per share reached $4.69, surpassing estimates and showing a significant year-over-year increase. The company also reported an improvement in its medical cost ratio. Management has consequently raised its full-year adjusted EPS outlook to at least $20.50.
Johnson & Johnson's adjusted Q3 earnings per share of $2.59 met expectations, but this figure represented a year-over-year decline. While its pharmaceutical division saw sales climb, its medical technology business experienced slower growth. J&J also raised its 2026 adjusted EPS guidance.
Comparing the two, Johnson & Johnson has seen stronger stock performance year-to-date. However, UnitedHealth presents a more favorable valuation, trading at a lower price-to-earnings multiple. UnitedHealth also offers a slightly higher dividend yield.
