UnitedHealth (UNH) shares remain in focus on Thursday after President Donald Trump announced a new initiative aimed at reforming the U.S. healthcare sector.
Dubbed the “Great Healthcare Plan,” this initiative focuses on lowering costs, expanding access, and boosting competition in healthcare, according to a White House fact sheet.
At the time of writing, UnitedHealth stock is up some 42% versus its 52-week low.
What the Great Healthcare Plan Means for UNH Shares
The Trump administration’s new healthcare initiative creates both challenges and opportunities for insurance companies, including UnitedHealth.
On the one hand, lower costs could squeeze near-term profitability, but on the other, expanded coverage pools and government alignment could drive long-term growth.
For UNH stock in particular, however, the former is much more likely to reflect in the price action this year given the company has already been grappling with squeezing margins.
In the latest reported quarter, its net margin declined further to just 2.1%. UnitedHealth’s history of losing over 4% on average in February makes it even less attractive to own in the near term.
UnitedHealth Stock Remains Unattractive for 2026
UnitedHealth shares remain unattractive also because the company has been hit with new Medicare accusations this week.
Together with the DOJ’s investigation into its billing practices, the NYSE-listed firm faces significant regulatory and reputational risk that could see it gasping for gains in 2026.
Meanwhile, elevated medical loss ratio remains an overhang on the health insurance giant as well.
What’s also worth mentioning is that UNH isn’t particularly inexpensive to own either following a meteoric rally over the past six months.
At the time of writing, it’s going for about 19x forward earnings, more than double the 9x multiple on Cigna (CI). UnitedHealth’s recent slide below its 200-day moving average (MA) further indicates bearish momentum ahead.
How Wall Street Recommends Playing UnitedHealth
Despite significant headwinds, however, Wall Street firms remain bullish as ever on UNH shares for the next 12 months.
According to Barchart, the consensus rating on UnitedHealth stock currently sits at “Moderate Buy” with the mean target of about $397 indicating potential upside of roughly 18% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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