Key Stats for UnitedHealth Stock
- Past-Week Performance: 3.4%
- 52-Week Range: $235 to $606
- Valuation Model Target Price: $406
- Implied Upside: 19.9% over 1.9 years
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What Happened?
UnitedHealth Group (UNH) stock rose about 3% over the past week, trading higher through most of the week and finishing near $345, toward the upper end of its recent range.
The move higher came after investors revisited the stock following earlier weakness tied to higher medical cost disclosures in Medicare Advantage, with last week marking a shift away from continued selling toward stabilization.
As no new cost-related or regulatory negatives emerged during the week, the focus turned to whether the recent pullback had already priced in those concerns.
Shares advanced further as several Wall Street firms reiterated constructive views after the pullback, reinforcing confidence that near-term cost pressures are manageable within the company’s broader earnings base. That commentary helped bring buyers back after a period of cautious positioning.
UnitedHealth also moved in line with strength across large-cap healthcare stocks, benefiting from broader sector gains and renewed interest in defensive names.
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Is UnitedHealth Undervalued?
Under valuation model assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 6.1%
- Operating Margins: 5.5%
- Exit P/E Multiple: 17.6x
Based on these inputs, the model estimates a target price of $406, implying 19.9% total upside from the last close of $338 over the next 1.9 years.
Over the next year, results will be influenced by how pricing adjustments offset medical cost trends as updated employer and Medicare Advantage contracts take effect.
Optum remains a key earnings driver, with growth in care delivery, pharmacy services, and value-based arrangements supporting profitability.
At the same time, execution in Medicare Advantage, including membership retention and pricing discipline, will play an important role in determining whether UnitedHealth delivers the revenue growth and operating margins reflected in this valuation.
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