UnitedHealth Group (UNH) has struggled in 2025. Its stock is down over 40% this year, pressured by higher Medicare Advantage costs, the sudden CEO departure, and growing federal scrutiny of its billing practices. Nonetheless, TipRanks’ A.I. Analyst gave UNH stock an Outperform rating, signaling confidence in the stock’s long-term potential.
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For context, TipRanks’ A.I. Stock Analysis provides automated, data-backed evaluations of stocks across key metrics, offering users a clear and concise view of a stock’s potential.
AI Analyst Breaks Down UNH Stock Outlook
According to TipRanks A.I. Stock Analysis, UNH stock scores 73 out of 100, with a price target of $339. That’s higher than Wall Street’s average target of $314.95. Meanwhile, the tool highlights both the positive and negative factors influencing the company’s stock performance.
Among the bullish factors, the company could see strong upside if it delivers on its strategy, with the potential for earnings to beat analyst estimates by up to 25% and consensus by 23%. The company is also showing some of the best year-over-year improvements in its clinical and operational performance in its history, giving investors confidence in its long-term growth prospects.
On the other hand, UNH missed its second-quarter earnings estimates and issued weak profit guidance. According to the tool, UNH’s recent earnings call carried a negative tone. Despite revenue growth and strengths at OptumRx and Medicare, pricing errors, rising costs, and weak performance across business lines have put financial pressure on UNH, prompting strategic and operational changes.
In addition, risks around Medicare Advantage star ratings and possible regulatory changes could pressure future performance, making the stock vulnerable despite its strong market position.
Is UNH a Good Buy Right Now?
Overall, Wall Street analysts also remain bullish on UNH stock. According to TipRanks’ consensus, UNH stock has a Strong Buy consensus rating based on 17 Buys, two Holds, and one Sell assigned in the last three months. At $314.95, the average UnitedHealth stock price target implies a 5% upside potential.
