Stock Price & Analysis

Based on the analysis of UnitedHealth Group Inc. (UNH), the stock presents a strong buy opportunity due to positive fundamentals, favorable technical indicators, and recent positive news developments. The stock is trading at 517.25 with a positive price momentum and improving sentiment.

Price Prediction for UNH Stock in 2025

1. Predicted Price: $650

   • Reason: Based on the average of analyst price targets from Wells Fargo, Cantor Fitzgerald, Keybanc, Barclays, and Truist, which range between $610 and $700. The average target is $652.40, suggesting a potential upside of approximately 26% from the current price of $516.85.

2. Predicted Price: $700

   • Reason: Cantor Fitzgerald maintains a "Buy" rating with a price target of $700, citing strong business positioning and a diversified portfolio.

3. Predicted Price: $660

   • Reason: Wells Fargo analyst Stephen Baxter maintains a "Buy" rating with a price target of $660, reflecting confidence in UnitedHealth's strategic initiatives and cost management.

The S1 support level for UNH Stock is $503.94 ,The R1 resistant level for UNH Stock is $525.42.

As of the end of day on 2025-04-01, the price of UNH Stock was $522.13.

The target price for UNH Stock according to analyst rating is 629.63, with the highest price target at 700.00 and the lowest at 560.00. Analysts have a Strong Buy rating on UNH Stock overall.

The market cap of UNH is $478.5B.

Analysis and Insights

UnitedHealth Group (UNH) appears overvalued based on its current valuation metrics and market position.

1. Valuation Metrics: UNH's forward P/E ratio of 30.2 and EV/EBITDA of 25.68 are significantly higher than industry averages, suggesting a premium valuation.

2. Price-to-Sales Ratio: The stock is trading at 1.22 times sales, indicating a rich valuation relative to its revenue growth.

3. Recent News: While Optum Rx's new payment model and strong earnings projections are positive, the stock's current price may already reflect these factors, leaving limited upside.

4. Market Sentiment: Analysts remain mixed, with a Validea Growth Investor rating of 69%, indicating strong fundamentals but not enough to justify the current valuation.

5. Technical Trends: The stock's recent price action shows a stable uptrend, but resistance levels around $520 could limit near-term gains.

Conclusion: UNH's high valuation metrics and limited upside potential suggest it may be overvalued at current levels. Investors may want to wait for a pullback or clearer catalysts before entering.

UnitedHealth Group Incorporated is a healthcare company. The Company has two businesses, Optum and UnitedHealthcare. Optum serves the health care marketplace, including patients and consumers, payers, care providers, employers, governments and life sciences companies. UnitedHealthcare offers a full range of health benefits designed to simplify the health care experience and make it more affordable for consumers to access care. UnitedHealthcare Employer & Individual serves consumers and employers, ranging from sole proprietorships to large, multi-site and national employers and public sector employers. UnitedHealthcare Medicare & Retirement delivers health and well-being benefits to seniors and other Medicare eligible consumers. The Company’s segments include Optum Health, Optum Insight, Optum Rx and UnitedHealthcare. UnitedHealthcare segment includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement and UnitedHealthcare Community & State.

Based on current trends and analyst expectations, UnitedHealth Group (UNH) stock could reach $800 to $1,000 by 2030. This prediction is supported by strong earnings growth, a diversified healthcare portfolio, and expanding services in Medicare Advantage and Optum. Analysts maintain a bullish outlook, with price targets suggesting significant upside potential.

UNH has a total of 440000 employees.