Analysts Signal a Turning Point for UnitedHealth Shares

After a challenging period for its investors, UnitedHealth Group appears to be regaining favor on Wall Street. The year 2025 tested shareholder patience as soaring medical costs and slashed profit forecasts triggered a prolonged decline in the stock's value. As 2026 begins, however, a growing chorus of market experts believes the bottom may be in, with several prominent institutions highlighting the current low valuation as a compelling entry opportunity.

The resilience of the company's long-term business model, despite recent margin pressures, is underscored by the actions of major investors. In a notable show of confidence, Berkshire Hathaway, led by Warren Buffett, established a new position in UnitedHealth during the second quarter of 2025. The investment, valued at over $1.5 billion, is interpreted by the market as a signal that savvy, long-term investors see the core business as fundamentally sound.

This institutional support comes amid significant volatility. The primary driver of the stock's previous downturn was a dramatic surge in the Medical Care Ratio, a key cost metric. In Q3 2025, this ratio jumped to nearly 90%, far exceeding the historical norm of around 82%. This cost explosion forced management to drastically revise its 2025 earnings per share guidance downward to approximately $16.25, from an original target close to $30.

Should investors sell immediately? Or is it worth buying Unitedhealth?

Fresh Analyst Ratings Fuel Optimism

The current recovery is being propelled by a series of upgraded assessments from investment banks. A significant catalyst was a new initiation by Evercore ISI. On Tuesday, analyst Elizabeth Anderson commenced coverage of UnitedHealth with an "Outperform" rating, assigning a price target of $400. From current levels near $342, this implies an upside potential of roughly 20%.

Barclays followed suit, raising its price target slightly to $391. The consensus among experts is that 2026 is viewed as a critical transitional year. While an operational turnaround may take time, many analysts consider the stock historically inexpensive, trading at a price-to-earnings (P/E) ratio of about 17.6. The recent share price gains suggest the market has now largely digested the negative news from 2025 and is shifting focus to the stabilization of the Optum segment.

The Forthcoming Crucible: Q4 Earnings

The next major test for this budding optimism is imminent. On January 27, 2026, UnitedHealth is scheduled to release its fourth-quarter results and provide its outlook for the current year. These figures will need to deliver concrete evidence that the margin recovery anticipated by analysts is genuinely underway. This report will be pivotal in determining whether the renewed confidence in the healthcare giant's prospects is indeed justified.