UnitedHealth Stock Rebounds as Wall Street Backs Turnaround

UnitedHealth ( (UNH) ) has risen by 7.62%. Read on to learn why.

UnitedHealth shares have climbed 7.62% over the past week, as investors begin to look past a bruising year marked by regulatory and cost pressures. The stock had fallen more than a third over 12 months amid soaring medical costs in its Medicare Advantage business and mounting legal and political scrutiny, including a Department of Justice probe and a Senate investigation into how the company boosted government reimbursements. The Senate report alleged that UnitedHealth “turned risk adjustment into a business,” citing tactics such as home visits, aggressive use of AI and data‑mining, and questionable diagnostic practices, all of which fueled fears of fines, tighter rules, and lasting damage to the franchise.

Despite these headwinds, the latest price rebound reflects growing confidence that UnitedHealth can execute a multi‑year turnaround. Analysts at Evercore and Bernstein have reiterated bullish views, arguing that 2026 will be a transition year as management exits unprofitable lines, works to restore margins in Medicare Advantage and Medicaid, and leans on Optum as a long‑term growth engine through value‑based care, AI tools, and specialty pharmacy services. TipRanks’ AI Analyst also rates the stock Outperform, pointing to underlying financial strength, margin recovery efforts, supportive technicals, and an attractive dividend, even while warning about near‑term cash‑flow and cost pressures.

For stock pickers, the improving sentiment is clear: Wall Street maintains a Strong Buy consensus on UnitedHealth, with the majority of analysts recommending the shares and price targets implying high‑teens upside from current levels. Earnings are still expected to be under pressure in the near term—consensus forecasts call for sharply lower EPS even as revenue continues to grow—but many see this as the trough of the cycle rather than the new normal. The 7.62% weekly rally suggests that a growing number of investors are willing to bet that the worst of the regulatory shock and margin squeeze is priced in, and that UnitedHealth’s scale, diversified operations, and restructuring efforts can set up a stronger profit rebound later in the decade.