UnitedHealth ( (UNH) ) has risen by 10.07%. Read on to learn why.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
UnitedHealth’s stock has seen a notable increase of 10.07% over the past week, driven by positive developments in its Medicare Advantage (MA) plans. The company announced that 78% of its MA members are expected to be enrolled in plans with a quality rating of at least four stars next year, up from 71% this year. This improvement has been well-received by the market, signaling a potential turnaround for the healthcare giant after a challenging year.
Analysts, including Morgan Stanley’s Erin Wright, have expressed optimism about UnitedHealth’s future. Wright’s discussions with the company’s leadership revealed a strong conviction in the turnaround, particularly in the MA and Optum Health segments. The expected growth in pre-tax margins and the strategic approach of CEO Stephen Hemsley have further bolstered confidence in the company’s ability to regain its former status as a ‘beat-and-raise’ firm.
Additionally, UBS analyst A.J. Rice has raised the price target for UnitedHealth stock, citing the reaffirmation of its 2025 earnings outlook and the maintenance of its Medicare Advantage Star rating for 2027. Despite some challenges, such as upcoming changes to Medicare Advantage risk-adjustment calculations, analysts believe that UnitedHealth is well-positioned to strengthen investor confidence and improve its margins, making it an attractive option for investors.