‘Buy Now or Regret Later,’ Says Top Investor About UnitedHealth Stock

UnitedHealth (NYSE:UNH) stock has been in free fall over the past few weeks, as a cascade of setbacks has erased nearly half its market value in little more than a month.

It all started with a rare miss in Q1 2025 earnings – its first since 2008 – which triggered the initial drop. Things quickly went from bad to worse: the company pulled its full-year guidance, blaming rising costs and higher insurance utilization. Then came the shock resignation of its CEO. Just when investors thought the storm might be passing, another bombshell hit – news broke that the U.S. Department of Justice had launched a Medicare fraud investigation into the company.

While a slate of insider buying momentarily boosted the share price a bit, another headline burst this would-be rally. The Centers for Medicare & Medicaid Services announced that it would be conducting audits of all Medicare Advantage plans, including a backlog of audits from the years 2018 through 2024.

In other words, it’s been a doozy of a spell for the healthcare giant. But could it also be an opportunity?

Absolutely, says one top investor, known by the pseudonym Quad 7 Capital. In fact, Quad 7 argues that now is the time to strike – before it becomes too late.

“We think you want to buy into the fear,” explains the 5-star investor, who is among the top 2% of TipRanks’ stock pros. “A phoenix rises from the ashes.”

For one, Quad 7 notes that insiders are investing some serious money in UNH, signifying that those “in the know” believe that brighter days are ahead. Moreover, the investor posits that the bad press (of which there is “a ton”) is already priced into the share price – leaving plenty of upside.

The investor predicts that an EPS of $20 will be achieved this year, with $25 to $27 a real possibility for 2026. This would give UNH a Forward Price-to-Earnings multiple of 11X.

“That is a dirt cheap valuation for a money-making company like this,” emphasizes Quad 7, adding that UNH is currently trading at a “historically low valuation.”

Regarding that pulled guidance, the investor expects UnitedHealth to issue revised projections on its Q2 earnings call in July – or during its Q3 call at the very latest. In other words, ignore the noise and stay the course.

“This selloff will very likely prove to be a wonderful buying opportunity,” concludes the Quad 7 Capital, who rates UNH shares a Buy. (To watch Quad 7 Capital’s track record, click here)

By and large, Wall Street is on board with UNH as well. With 19 Buys, 6 Holds, and 1 Sell, UNH enjoys a Moderate Buy consensus rating. Its 12-month average price target of $380.59 suggests an upside of 27% from current levels. (See UNH stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.