UnitedHealth Faces Underwriting Crisis,Potential Recovery Hinges on Medicare Advantage
NEW YORK – UnitedHealth group (NYSE: UNH) is navigating a notable underwriting crisis,marking the worst period for the managed care industry in over 15 years,according to Goldman Sachs analyst Scott Fidel. Despite these challenging market conditions, the investment firm anticipates a margin recovery beginning in 2026, largely fueled by increased participation in the Medicare Advantage program.
However, the rebound won’t be uniform across all sectors. While Medicare Advantage is projected to recover more quickly, the path to enhancement for Medicaid and healthcare exchange segments is expected to be considerably longer. UnitedHealth shares plummeted 35% last year, underperforming the S&P 500 by over 52 percentage points, placing pressure on the company’s quarterly report scheduled for October 28th, where earnings per share are forecast at $2.84.
Goldman Sachs anticipates a comprehensive review of business practices and a shift towards more conservative pricing reflecting rising medical costs under new management.Despite current headwinds, institutional interest and recent analyst upgrades suggest a potential turning point, with a price target of $406 indicating significant upside. Börse Express reports that the cyclical nature of the healthcare sector presents both challenges and potential entry points for long-term investors. A detailed analysis published October 18th by Börse Express offers further insights into weather investors should buy, sell, or hold UnitedHealth stock.
