TLDR
- Jim Cramer praised UnitedHealth’s rankings while acknowledging government investigation concerns
- Stock continues rising despite regulatory scrutiny, suggesting worst may be over
- Company disclosed 78% of Medicare members will be in 4+ star plans for 2026
- Bernstein SocGen maintains Outperform rating with $379 price target
- Multiple analysts view preliminary Medicare data as reducing investor uncertainty
UnitedHealth Group stock faces a complex investment landscape as government investigations clash with strong operational performance. The healthcare giant has captured attention from both regulators and market analysts.
Jim Cramer offered cautious support for UNH stock during recent market commentary. He compared the situation to Google’s regulatory challenges while noting the stock’s upward momentum.
“UnitedHealth has been going up,” Cramer observed. He referenced the company’s recent rankings, calling them “good” despite ongoing concerns.
The Mad Money host expressed typical reluctance about buying stocks under investigation. However, he suggested some market participants believe UnitedHealth’s worst days may be behind it.
Medicare Stars Data Boosts Confidence
UnitedHealth released preliminary 2026 Medicare Advantage Stars results ahead of third-quarter earnings. The company disclosed approximately 78% of Medicare Advantage members will be in 4+ star plans for 2026.
This figure meets company expectations and historical performance levels. The disclosure came through an 8-K filing released before investor meetings.
UnitedHealth also reaffirmed its 2025 adjusted earnings per share guidance. This addresses key investor concerns about potential guidance cuts under new leadership.
Bernstein SocGen maintained its Outperform rating with a $379 price target. The firm views the preliminary data as positive for reducing near-term uncertainty.
Analyst Support Remains Strong
Multiple investment firms have weighed in positively on UNH stock. Truist Securities raised its price target to $365 while maintaining a Buy rating.
Barclays reiterated an Overweight rating with a $352 price target. The firm cited stable star ratings as encouraging for future performance.
Morgan Stanley continues supporting an Overweight rating with a $325 price target. The firm highlighted optimism about Medicare Advantage profit improvements.
TD Cowen maintained its Hold rating with a $275 price target while acknowledging the preliminary nature of the data.
UnitedHealth trades at a P/E ratio of 14.9x with a $315 billion market capitalization. The company maintains strong financial health scores from market data providers.
The Stars ratings directly impact 2027 earnings recovery potential through government reimbursement rates. Higher ratings typically translate to better payment terms.
Official Stars ratings release is scheduled for October, providing final confirmation of preliminary data shared with investors.
