Copyright Barchart
UnitedHealth (UNH) shares inched higher on Oct. 28 after the company reported an upbeat Q3 on strength in the core insurance segment as well as its healthcare services business Optum. UNH topped expectations on both the top and the bottom lines in its third financial quarter, prompting management to raise its full-year guidance as well on Tuesday. The NYSE-listed giant now sees its adjusted earnings coming in at $16.25 a share in 2025, up from its previous outlook for $16 only. Following the post-earnings gains, UnitedHealth stock is up roughly 60% versus it August low. Is UnitedHealth Stock Worth Buying After Q3 Earnings? While the medical care ratio remained stretched, UNH earnings indicate CEO Stephen Hemsley’s strategic initiatives to bolster performance and position for accelerated growth have started bearing fruits. Cash flow remained rather strong in the company’s fiscal third quarter at $5.9 billion, showcasing operational improvement and underlying financial strength. Looking ahead, management is targeting double-digit expansion by 2027, underscoring confidence in UnitedHealth’s ability to navigate cost pressure while scaling both Optum and its core insurance business. A healthy 2.38% dividend yield makes UNH stock even more attractive to own heading into 2026. Where Options Data Suggests UNH Shares Are Headed Options traders are pricing for continued upside in UnitedHealth shares through the remainder of this year. According to Barchart, the upper bound on contracts expiring January 16 currently sits at roughly $413, indicating potential for another 10.3% upside from here. In the near term as well, the expected move through the end of next week is 4.4%, which means UNH shares could hit $391 by Nov. 7, especially since volume is majorly skewed towards calls. In short, the NYSE-listed firm’s diversified business model and market leadership position it well for continued upside, despite ongoing regulatory scrutiny and industry headwinds. Investors should also note that UnitedHealth currently looks poised to challenge its 200-day MA around the $390 level, a break above which would potentially clear the path for further upside in 2026. What’s the Consensus Rating on UnitedHealth Group? Wall Street firms remains bullish on UNH stock after the company’s encouraging quarterly release as well. The consensus rating on UnitedHealth shares remains at “Moderate Buy” with price targets going as high as $440 indicating nearly 18% potential upside from here.
