TLDR
- Jim Cramer expressed cautious optimism about UnitedHealth (UNH) despite ongoing government investigations, noting the company’s recent positive rankings
- Bernstein SocGen reiterated an Outperform rating with a $379 price target for UnitedHealth stock
- UnitedHealth disclosed that 78% of Medicare Advantage members will be in 4+ star plans for 2026, meeting company expectations
- The company reaffirmed its 2025 adjusted earnings per share guidance ahead of investor meetings
- Multiple analysts view the preliminary Medicare Stars data as reducing near-term uncertainty for investors
UnitedHealth Group faces a mixed landscape as investors weigh government investigations against strong operational metrics. The healthcare giant has drawn attention from both regulators and market commentators in recent days.
Jim Cramer offered measured support for the stock during a recent segment. He acknowledged concerns about government involvement but pointed to the company’s upward trajectory.
“UnitedHealth has been going up,” Cramer noted. He referenced the company’s recent rankings disclosure, calling them “good.”
The Mad Money host compared the situation to Google’s regulatory challenges. He suggested that serious issues would likely have been disclosed by management at this point.
Cramer admitted his general reluctance to buy stocks under investigation. However, he hinted that some market participants believe the worst may be behind the company.
Analyst Confidence Remains Strong
Bernstein SocGen Group maintained its Outperform rating on UnitedHealth with a $379 price target. The firm views recent developments as positive for the stock’s prospects.
UnitedHealth released preliminary 2026 Medicare Advantage Stars results ahead of third-quarter earnings. The company disclosed that approximately 78% of Medicare Advantage members will be in 4+ star plans for 2026.
This figure aligns with 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 in the same filing. This move addresses two key investor concerns that have weighed on the stock.
Market Positioning Ahead of Earnings
Bernstein SocGen identified specific worries that the preliminary data helps address. Investors had feared potential guidance cuts under new leadership and negative surprises in Stars ratings.
The Stars ratings directly impact 2027 earnings recovery potential. Higher ratings typically translate to better reimbursement rates from government programs.
The firm believes this disclosure may reduce near-term uncertainty for shareholders. This could encourage position-taking before third-quarter earnings rather than waiting for official ratings.
Other major investment firms have also weighed in recently. 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 a positive development.
Morgan Stanley continues supporting an Overweight rating with a $325 price target. The firm highlighted optimism about Medicare Advantage and Optum Health profit improvements.
TD Cowen maintained its Hold rating with a $275 price target. The firm acknowledged the preliminary nature of the star ratings data.
UnitedHealth currently trades at a P/E ratio of 14.9x with a market capitalization of $315 billion. The company maintains a strong financial health score according to market data providers.
The stock has shown resilience despite regulatory headwinds. Recent disclosures suggest management confidence in operational performance metrics.
Official Stars ratings release is scheduled for October. This will provide final confirmation of the preliminary data shared with investors.
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