UnitedHealth Stock Emerges as a Top Analyst Selection for 2026

A notable shift in sentiment is building around UnitedHealth Group after a challenging period that saw its shares lose approximately 30% of their value. Market experts are now positioning the healthcare behemoth as a favored investment for 2026, citing significant recovery potential following the recent price decline. Concurrently, reports of a potential multi-billion dollar divestiture are fueling investor optimism for a more streamlined corporate strategy.

Adding momentum to the positive outlook are concrete reports of corporate asset sales. UnitedHealth is reportedly in advanced discussions to sell its UK-based Optum UK division to the private equity firm TPG. Estimated to be worth over $1 billion, this transaction aligns with a strategic focus on reallocating capital toward higher-growth core segments. Such liquidity events are generally viewed favorably by the market, as they can strengthen the balance sheet and reduce operational complexity.

Clear Upside Potential Identified by Research Firms

The primary catalyst for the renewed confidence is a strong endorsement from Bernstein SocGen Group. Analyst Lance Wilkes has designated UnitedHealth as his "Top Pick" for 2026, raising his price target from $440 to $444 per share. This implies an upside of roughly 27% from current trading levels. This optimistic stance is grounded in a projected revenue increase of 12% for the current year, which would exceed the company's historical average growth rate of 10%.

This perspective is reinforced by Evercore ISI. The research firm initiated coverage of the stock on January 6 with an "Outperform" rating and a $400 price target. These cumulative positive signals indicate a stabilization in market consensus, following a period last year when the share price fell to a low of $205.45.

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

Valuation and Sector Considerations

From a fundamental standpoint, the stock appears attractively valued after its prolonged corrective phase. Trading at a price-to-earnings (P/E) ratio of about 17.9, the shares carry a notable discount compared to the healthcare sector average, which stands near 23.3. Analysts interpret this as the equity being undervalued relative to the firm's earnings power.

While the sector faces headwinds from the expiration of certain government subsidies (ACA) in 2026, experts like Wilkes anticipate a recovery in Medicaid-related business, particularly in the second half of the year. UnitedHealth's diversified business model positions it to potentially benefit disproportionately from this expected improvement.

For investors, the key question is whether the combination of analyst upgrades and the potential Optum divestment will be sufficient to solidify the recent upward trend. If the positive momentum observed over the last 30 days continues, it could validate the re-rating scenario forecast by Bernstein.