Why UnitedHealth Group Stock Just Bounced Back
Key Points
UnitedHealth stock collapsed after reporting almost zero Q4 profit yesterday.
The stock is bouncing back as investors weigh the prospect of earnings growing again over the next five years.
- 10 stocks we like better than UnitedHealth Group ›
Shares of UnitedHealth Group (NYSE: UNH) stock crashed nearly 20% yesterday after reporting a tiny sales miss in its Q4 earnings report -- and a gigantic disappointment on profits.
Although UnitedHealth's non-GAAP earnings hit analyst targets, when calculated under generally accepted accounting principles, UnitedHealth's GAAP earnings for Q4 2025 basically vanished -- down nearly 100% year over year at just $0.01 per share. But here's the good news:
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
UnitedHealth stock is already bouncing back today.
Image source: Getty Images.
Dead cat bounce?
Shares of the giant health insurance company are up 4% as of 11:55 a.m. ET Wednesday. That's barely a bandage on yesterday's gargantuan losses, but it's better than another decline.
It's also a bit surprising considering how Wall Street analysts are reacting to the company's earnings (and to a related report that the U.S. government will freeze Medicare Advantage rates in 2027). According to the latest data from TheFly.com, no fewer than seven separate analysts have cut their price targets on UnitedHealth stock. But here's the thing:
Every single one of these analysts thinks UnitedHealth stock is worth more than the $294 it costs today.
And almost all of them think UnitedHealth stock is a buy.
Is UnitedHealth stock a buy?
Of the analysts who made price moves yesterday, Bank of America is the most pessimistic, valuing UnitedHealth stock at $315 a share. Cantor Fitzgerald, in contrast, predicts UnitedHealth will hit $440 within a year -- a 50% profit from where it trades today! -- with the other analysts somewhere in the middle
Are these analysts right?
When I look at UnitedHealth stock trading for just 16.7 times forward earnings, paying a 3.1% dividend yield, and expected to triple its profits over the next five years, I kind of think they might be.
Should you buy stock in UnitedHealth Group right now?
Before you buy stock in UnitedHealth Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and UnitedHealth Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 28, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
Recommended Articles
