Why UnitedHealth Group Stock Just Bounced Back

Shares of UnitedHealth Group (NYSE: UNH) banal crashed astir 20% yesterday aft reporting a tiny income miss successful its Q4 net study -- and a gigantic disappointment connected profits.

Although UnitedHealth's non-GAAP net deed expert targets, erstwhile calculated nether mostly accepted accounting principles, UnitedHealth's GAAP net for Q4 2025 fundamentally vanished -- down astir 100% twelvemonth implicit twelvemonth astatine conscionable $0.01 per share. But here's the bully news:

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UnitedHealth banal is already bouncing backmost today.

Shares of the elephantine wellness security institution are up 4% arsenic of 11:55 a.m. ET Wednesday. That's hardly a bandage connected yesterday's gargantuan losses, but it's amended than different decline.

It's besides a spot astonishing considering however Wall Street analysts are reacting to the company's net (and to a related study that the U.S. authorities volition frost Medicare Advantage rates successful 2027). According to the latest information from TheFly.com, nary less than 7 abstracted analysts person chopped their terms targets connected UnitedHealth stock. But here's the thing:

Every azygous 1 of these analysts thinks UnitedHealth banal is worthy much than the $294 it costs today.

And astir each of them deliberation UnitedHealth banal is simply a buy.

Of the analysts who made terms moves yesterday, Bank of America is the astir pessimistic, valuing UnitedHealth banal astatine $315 a share. Cantor Fitzgerald, successful contrast, predicts UnitedHealth volition deed $440 wrong a twelvemonth -- a 50% nett from wherever it trades today! -- with the different analysts determination successful the middle

Are these analysts right?

When I look astatine UnitedHealth banal trading for conscionable 16.7 times guardant earnings, paying a 3.1% dividend yield, and expected to triple its profits implicit the adjacent 5 years, I benignant of deliberation they mightiness be.

Before you bargain banal successful UnitedHealth Group, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and UnitedHealth Group wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

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