Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 23 Apr, 26 | UNH | Buy | USD 353.52 | USD 371.51 | USD 389.2 | 12 days | Closed |
5.09%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
UnitedHealth Group Incorporated operates as a diversified health care company in the United States. It operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage, and health and well-being services to individuals age 50 and older addressing their needs; Medicaid plans, children's health insurance and health care programs; and health and dental benefits, and hospital and clinical services, as well as health care benefits products and services to state programs caring for the economically disadvantaged, medically underserved, and those without the benefit of employer-funded health care coverage. The OptumHealth segment provides care delivery, care management, wellness and consumer engagement, and health financial services for consumers, care delivery systems, providers, employers, payers, and public-sector entities. The OptumInsight segment offers software and information products, advisory consulting arrangements, and managed services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations. The OptumRx segment provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and community health pharmacy services, and purchasing and clinical capabilities, as well as develops programs in the areas of step therapy, formulary management, drug adherence, and disease/drug therapy management. UnitedHealth Group Incorporated was incorporated in 1977 and is based in Minnetonka, Minnesota.
Improvement in Medical Care Ratio: 83.9% in Q1FY26 vs 84.8% in Q1FY25
Increase in Total Revenue: USD 111.7 Billion in Q1FY26 vs USD 109.6 Billion in Q1FY25
Reduction in Total Membership: 49.1 Million in Q1FY26 vs 49.8 Million in FY25 end
Decline in Optum Health Revenue: USD 24.1 Billion in Q1FY26 vs USD 24.8 Billion in Q1FY25
The company faces risk from rising healthcare cost trends and regulatory changes in government programs, which could pressure margins and impact pricing alignment
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 353.52 | 318.44 | 371.51 | 389.2 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Strong Start Driven by Operational Discipline and Pricing Actions: UnitedHealth Group delivered a solid start to FY26, with first-quarter revenues increasing to USD 111.7 billion compared to USD 109.6 billion in Q1FY25, reflecting a 2% year-over-year growth supported by disciplined pricing and favorable member mix . The company’s performance was underpinned by continued execution of strategic initiatives implemented in prior periods, enabling stability across its diversified healthcare platform.
Earnings Growth Supported by Improved Fundamentals: Profitability remained resilient, with adjusted earnings per share rising to USD 7.23 in Q1FY26 from USD 7.20 in Q1FY25, supported by strong operational metrics and favorable reserve development. Earnings from operations stood at USD 9.0 billion, broadly stable year-over-year, while net margins remained steady at 5.6%, reflecting balanced growth and cost management across segments.
Medical Cost Efficiency and Margin Expansion: The company demonstrated improved cost discipline, with the medical care ratio declining to 83.9% in Q1FY26 from 84.8% in Q1FY25, indicating effective pricing alignment and cost control initiatives. Additionally, UnitedHealthcare’s operating margin expanded to 6.6% from 6.2%, driven by repricing actions and improved business mix, supporting overall margin resilience despite elevated healthcare cost trends.
Segment Performance Reflects Mixed Trends: UnitedHealthcare remained the primary growth driver, with revenues increasing to USD 86.3 billion from USD 84.6 billion, alongside operating earnings rising to USD 5.7 billion from USD 5.2 billion. However, Optum businesses showed mixed performance, with Optum Health revenues declining due to lower value-based care membership, while Optum Insight and Optum Rx experienced modest growth but faced earnings pressure due to continued investments.
Digital Transformation and AI-Led Efficiency Gains: Operationally, the company continued to advance its digital and AI capabilities, investing heavily in automation and analytics to enhance efficiency and user experience. Increased adoption of digital tools improved member engagement and provider interactions, while AI-driven solutions in claims processing and prior authorization contributed to productivity gains and reduced administrative burden.
Cash Flow Strength and Capital Allocation Discipline: UnitedHealth reported strong operating cash flows of USD 8.9 billion in Q1FY26, representing 1.4x net income, highlighting robust liquidity generation. The company maintained disciplined capital allocation, reducing its debt-to-capital ratio to 42.9% and initiating share repurchases, reflecting confidence in long-term value creation while continuing to invest in growth and strategic initiatives.
Strategic Realignment and Long-Term Outlook: The company continues to refocus on its core U.S. healthcare operations, exiting non-core geographies and strengthening governance and leadership. Investments in AI, value-based care, and healthcare system modernization are expected to drive long-term efficiency and growth, while management raised FY26 adjusted EPS guidance to above USD 18.25, indicating confidence in sustained momentum.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to UnitedHealth Group Incorporated (NYSE: UNH) at the closing market price of USD 353.52, as on 22 April,2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Healthcare Plans
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| UNH UnitedHealth Group Incorporated |
9.50 2.25% | 431.05 | 22.57 | 18.38 | 1.33 | 5.65 | 1.38 | 13.97 |
| CVS CVS Health Corp |
1.25 1.17% | 108.86 | 55.65 | 10.80 | 0.25 | 1.32 | 0.42 | 17.09 |
| CI Cigna Corp |
2.66 0.94% | 286.60 | 12.47 | 9.12 | 0.27 | 1.75 | 0.35 | |
| ELV Elevance Health Inc |
4.57 1.20% | 386.80 | 13.02 | 12.47 | 0.36 | 1.60 | 0.47 | |
| HUM Humana Inc |
5.28 1.33% | 403.48 | 19.16 | 14.60 | 0.56 | 3.37 | 0.53 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on April 23, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2026 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
Australia