‘Worth the Risk,’ Says Investor About UnitedHealth Stock

UnitedHealth (NYSE:UNH) stock attempted a comeback last week, but the rally quickly fizzled. Despite a brief surge fueled by insider buying, shares slid nearly 9% over the last three trading sessions, leaving investors questioning whether the worst is truly behind the healthcare giant.

The troubles began in mid-April with a rare earnings miss – the first since 2008 – falling short by more than $2 billion in revenue. The pain only deepened in May, when a double whammy hit: CEO Andrew Witty abruptly stepped down, and the company withdrew its full-year guidance, citing higher medical care activities and costs. Adding to investor jitters, reports surfaced that the U.S. Department of Justice is investigating the company for Medicare fraud.

With shares now down around 42% year to date, sentiment remains fragile. Still, not everyone is backing away. Investor Daniel Schönberger thinks that despite the sinking share price – or perhaps even because of it – UNH is a risk worth taking.

“The company remains fundamentally strong, with robust long-term growth prospects, stable margins, and a proven economic moat,” Schönberger opined.

While the investor acknowledges the short-term uncertainty, he argues that UnitedHealth demonstrates “financial resilience” and boasts a strong track record of increasing revenues, which grew by 843% between 2005 and 2025.

Moreover, the investor points out that UNH is uniquely positioned to weather any difficulties caused by the current environment. Not only will tariffs not impact UNH (99% of its revenues are from the U.S.) but healthcare as an industry tends to be recession-proof.

In that vein, looking forward, Schönberger cites projections of UNH’s EPS to enjoy a compound annual growth of 10.61% between fiscal 2024 and 2034. The investor notes that company management is even more bullish, expecting a range of 13% to 16% EPS growth.

“Analysts and management are also extremely optimistic about the company’s growth potential in the years to come, and we should be rather optimistic,” adds the investor.

“UnitedHealth seems to be extremely undervalued and trading far below its intrinsic value,” Schönberger concludes, reaffirming his Buy rating. (To watch Schonberger’s track record, click here)

Indeed, Wall Street analysts seem to be on board with this approach. UNH stock carries a Moderate Buy consensus rating based on 19 Buys, 6 Holds, and just 1 Sell. The average 12-month price target stands at $380.59, pointing to a potential upside of ~29% 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.