UnitedHealth Faces Underwritingโ Crisis,Potential Recovery Hinges on Medicare Advantage
NEW YORK – UnitedHealth group (NYSE: UNH)โข is navigating a notable underwritingโ crisis,markingโ the worst periodโข for the managed care industry โขin over 15 years,according to Goldman Sachs analyst Scott Fidel. Despite these challengingโ market conditions, the investment firm anticipates a margin recovery beginningโ in 2026,โ largely fueled by increased participation in the Medicare Advantage program.
However, the rebound won’t be uniform acrossโ all sectors. While Medicare Advantage โis projected to recover more quickly, the path to enhancement for Medicaid and healthcare exchange segments is expected to be considerablyโ longer. UnitedHealth shares plummeted โค35% last year, underperforming the S&P 500 by over 52 percentage points, placing pressure on the company’s quarterly report โscheduled for October 28th, where earnings per share are forecast at $2.84.
Goldman Sachs anticipates a comprehensive reviewโ of businessโค practices and a shift towards more conservative pricing reflecting rising medical costs under new management.Despite currentโฃ headwinds, institutional interest and recentโ analyst upgrades suggest a potential turning point,โ with a โขprice target of $406 indicating significant upside. Bรถrse Express โreports that โฃthe cyclical nature of the healthcare sector presents both challenges and potential entry points forโ long-term investors. A detailed analysis published October 18th by โฃBรถrse Express offersโ further insights into weather investors should buy, sell, or hold UnitedHealth stock.