Should I buy UnitedHealth stock in 2025? Essential info for NZ investors

What is UnitedHealth?

Note: EBITDA not directly published in latest US GAAP filings, net income figures used as proxy.

How much is the UnitedHealth stock?

The price of UnitedHealth stock is slightly up today. As of now, the share trades at $298.17 USD, with a 24-hour increase of $0.06, or +0.02%, though down 0.88% over the week. UnitedHealth’s market capitalisation stands at $270.48 billion, with an average daily volume of 13.9 million shares traded over the last three months. The company’s price/earnings ratio is 12.49, offering a dividend yield of 2.82%, and its stock beta is 0.57, signalling lower volatility than the broader market.

For New Zealand investors, these fundamentals point to a stock with defensive characteristics and moderate risk, appealing for cautious portfolio diversification.

Our full analysis on the UnitedHealth stock

Re-examining UnitedHealth Group’s (UNH) latest quarterly results and reviewing its trajectory over the past three years, our proprietary methodology integrates advanced financial indicators, technical signals, market data, and competitive benchmarking to deliver a holistic view. Despite recent volatility, this approach enables us to pinpoint inflection points and emerging opportunities with particular relevance to forward-looking investors. So, why might UnitedHealth stock once again become a strategic entry point into the global healthcare sector in 2025?

Recent Performance and Market Context

UnitedHealth Group’s stock has experienced a significant recalibration in recent months, currently trading at $298.17 as of 29 May 2025. While the past six months saw a decline of 51.14% and the 12-month performance fell by 38.49%, it is essential to contextualise these figures against the broader sector backdrop and company-specific catalysts.

• Leadership Transition: The appointment of Stephen J. Hemsley as CEO in May 2025 brings renewed confidence, given his prior successful leadership (2006–2017) and deep institutional knowledge. The initial 10% dip following the change has since stabilised, with markets welcoming the continuity and proven strategic vision.
• Sector Tailwinds: The U.S. healthcare sector is benefitting from sustained demographic drivers, particularly growth in the Medicare Advantage market, and a persistent push towards integrated care solutions.
• Resilience in Adversity: Despite regulatory challenges and higher-than-expected medical costs, UnitedHealth’s business model, marked by diversification and operational scale, has allowed it to weather sector-wide headwinds more robustly than many competitors.

The recent share price weakness reflects transitional, rather than structural, pressures—setting the stage for a base-building phase that could be attractive for investors seeking positioning ahead of a cyclical upturn.

Technical Analysis

Technical indicators position UnitedHealth as one of the most oversold names in its peer group, drawing attention from both institutional and sophisticated retail traders.

• Relative Strength Index (RSI): At 27.08, the RSI signals an extremely oversold condition, typically preceding a technical rebound.
• MACD (Moving Average Convergence Divergence): While the MACD at -46.20 currently registers as bearish, this, combined with a depressed RSI, often marks a final stage in downward moves and sets up for a reversal.
• Support and Resistance: The stock has found strong support around $292 and has another robust floor near $249—levels which historically have triggered notable accumulation. Overhead, the $325 mark serves as an initial target for any rebound, reinforced by the upper band of the prevailing technical range.
• Momentum: Despite negative momentum short-term, the structural pattern hints at a classic basing formation. Previous periods featuring similar technical setups in UNH led to subsequent rallies of considerable magnitude.

For traders and investors alike, such technical configurations frequently present compelling entry points, especially given the alignment of oversold signals with solid fundamental underpinnings.

Fundamental Analysis

From a fundamental standpoint, UnitedHealth’s investment case remains deeply rooted in its enduring industry leadership and financial strength.

• Revenue and Profit Growth: Q1 2025 saw a revenue jump to $109.6 billion (+9.8% year-over-year), underlining robust organic growth in a challenging environment. Net income recovered strongly to $6.29 billion, rebounding from a rare loss in the previous year’s comparable period.
• Earnings: Although Q1 adjusted EPS of $7.20 narrowly missed consensus estimates ($7.27), the overall trajectory remains positive—especially considering the external environment.
• Valuation: With a forward P/E of 12.49, the stock now trades at a historical discount, well below sector and long-term averages. The price-to-sales (0.67) and price-to-book (2.85) ratios further reinforce relative undervaluation.
• Structural Strengths: UnitedHealth retains a dominant share in U.S. healthcare plans and boasts industry-best integration via its Optum subsidiaries (Health, Insight, Rx). Its scale, 400,000-strong global workforce, and vertical integration foster cost efficiencies and enduring market presence.
• Profitability Metrics: Return on equity (22.7%) and return on assets (7.04%) speak to superior operational execution, while a 5.39% margin underscores resilience even as certain cost pressures are managed.
• Brand Power and Adaptability: The company’s global brand, history of innovation, and decades-long outperformance position it well to capture future healthcare trends, including digital health, preventative care, and data analytics.

Taken together, these financial and strategic factors illustrate why UnitedHealth’s fundamentals justify renewed investor interest at today’s more accessible valuation.

Volume and Liquidity

Market confidence in UnitedHealth is further evidenced by strong volume and excellent liquidity:

• Average Daily Volume: At 13.9 million shares, liquidity is ample, ensuring minimal slippage for institutional and retail investors alike.
• Float: With 905 million of the 907.14 million shares outstanding being freely traded, the stock remains highly responsive to valuation re-ratings and new flows.
• Institutional Participation: The robust trading volume history speaks to sustained institutional interest—a key factor in underpinning longer-term revaluation when sentiment turns positive.

High liquidity means investors can enter and exit positions efficiently, making UNH suitable for dynamic positioning or longer-term holding strategies.

Catalysts and Positive Outlook

A series of near- and medium-term catalysts underpin UnitedHealth’s bullish narrative:

• Renewed Leadership and Strategic Continuity: Stephen J. Hemsley’s return as CEO is anticipated to reverse recent uncertainty through proven operational acumen and shareholder-friendly management.
• Core Business Growth: Expansion of Medicare Advantage, commercial and government plan membership, and strength in Optum’s healthcare delivery, analytics, and pharmacy segments fuel diversified top-line growth—offsetting sector headwinds.
• Valuation Reset: The recent drawdown has reset expectations to a pragmatic level, while the company’s valuation now offers a margin of safety rarely seen with this calibre of blue-chip name.
• ESG Initiatives and Innovation: Ongoing investments in digital health, analytics (through Optum Insight), pharmacy benefit management, and value-based care models position UNH to capitalise on long-term shifts in global healthcare delivery.
• Demographic Megatrends: Ageing populations in the United States and globally continue to drive increasing demand for managed care products, offering a structural runway for growth.
• Potential for Guidance Revision Upwards: As medical cost pressures normalise and regulatory clarity improves, management has room to reinstate or even revise guidance positively, serving as a strong upside catalyst.

These supportive elements, alongside favourable long-term sector dynamics, suggest UnitedHealth may be entering a new bullish phase.

Investment Strategies

The current environment presents multiple compelling scenarios for different investor horizons:

• Short-Term: For tactically minded investors, the deeply oversold technical profile—combined with identifiable support levels—suggests near-term rebound potential, especially in anticipation of stabilising news or positive management commentary.
• Medium-Term: Investors seeking to capture medium-term reversion to mean can look to accumulate around prevailing support zones ($292 and $249), with the first technical upside target set at the $325–$387 range. The anticipated resurgence in profitability and operational stability under new leadership could act as catalysts for further gains.
• Long-Term: For investors prioritising structural strength and long-term value creation, UnitedHealth offers an attractive entry at a rare valuation discount. The company’s dominant industry position, robust balance sheet, and capacity for innovation create a foundation for durable compounding as global health expenditures rise.

Strategically, positions established in the current base-building phase could benefit not only from technical reversal but also participation in the next phase of sector growth and business reinvention.

Is it the Right Time to Buy UnitedHealth?

All key indicators suggest that UnitedHealth is transitioning from a phase of short-term challenge to one of renewed opportunity:

• The stock trades at a multi-year low in valuation, offering significant upside to consensus price targets with a margin of safety.
• Technical signals confirm that UNH has entered an oversold condition, historically matched with subsequent positive reversals.
• Recent management changes restore strategic focus and align with a proven track record of operational excellence.
• The company’s balance of structural strengths—market leadership, operational resilience, and strategic innovation—remain intact, ensuring competitiveness across cycles.
• Robust trading volumes and large public float ensure high liquidity, supporting dynamic portfolio management.

Against the backdrop of demographic tailwinds, accelerating healthcare digitisation, and a global focus on value-driven medical outcomes, UnitedHealth stands uniquely positioned for a powerful recovery. With the fundamentals, technicals, and macro trends aligning, UnitedHealth stock seems to represent an excellent opportunity for forward-thinking investors prepared to capitalise on the next phase of healthcare sector leadership.

Ultimately, UnitedHealth Group offers a blend of value, resilience, and growth potential that few peers can match—making this a timely moment for investors to examine seriously its role in a diversified portfolio, especially as new catalysts and sector dynamics take shape in the months ahead.

How to buy UnitedHealth stock in New Zealand?

Buying UnitedHealth (UNH) stock online is both straightforward and secure for New Zealand investors when you use a regulated broker. You’ll find two main methods available: traditional spot (cash) buying, where you directly own the shares, and trading Contracts for Difference (CFDs), which track the stock’s price without conferring ownership. Each approach has its own advantages and fee structures. To help you select the right option, we’ve detailed the key points below—be sure to check our comprehensive broker comparison further down the page.

Spot buying

A “cash purchase” (spot buying) means you buy UnitedHealth shares directly and become their legal owner. This is ideal for long-term investors who want to receive dividends and benefit from potential capital appreciation. In New Zealand, most regulated online brokers charge a flat commission per US share purchase—typically around NZ$5 to NZ$15 per trade.

Example

Suppose UnitedHealth’s share price is US$298.17. With an investment of NZ$1,000 (around US$610 at current rates), you can buy approximately 2 shares (2 × US$298.17 = US$596.34), factoring in about NZ$5 brokerage fees.

Gain scenario

If the share price rises by 10% (to about US$328), your shares would now be worth US$656. That’s a gross gain of approximately NZ$98 (given exchange rate stability), or about +10% on your initial investment.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on UnitedHealth’s price movements without directly owning the shares. CFDs allow access to leverage, amplifying both gains and losses. With most CFD platforms, you pay a spread (the difference between buy/sell prices) and, if you hold overnight, a small financing fee.

Example

With a NZ$1,000 deposit and 5x leverage, you control NZ$5,000 worth of UnitedHealth exposure. If the stock rises by 8%, your position gains 8% × 5 = 40%. That’s a NZ$400 gain on your NZ$1,000 margin (excluding spreads and overnight charges). Remember, the same leverage multiplies losses if the price moves against you.

Final advice

Before investing, it’s vital to compare the fees, account conditions, and support offered by different brokers—costs and features can vary widely between spot share and CFD platforms. Ultimately, your choice should reflect your investment style: direct share ownership is often preferable for long-term investors, while CFDs suit those seeking short-term opportunities and willing to accept higher risk. Be sure to consult our broker comparison tool further down the page to find the ideal partner for your UnitedHealth investment journey.

Our 7 tips for buying UnitedHealth stock

The latest news about UnitedHealth

UnitedHealth Group’s technical indicators show an extremely oversold situation, indicating a near-term rebound potential. With the stock’s 14-day RSI at 27.08, analysts interpret the current technical signals as strongly oversold, historically suggesting that patient, risk-tolerant investors could see a technical bounce. While the MACD remains negative and momentum subdued, the company’s longer-term position and low beta imply lower volatility – a feature that can be particularly attractive to New Zealand-based portfolios seeking diversification with reduced US equity risk.

The company reaffirmed its sector-leading scale with first-quarter 2025 revenue growth and a return to profitability. UnitedHealth reported Q1 2025 revenue of $109.6 billion, up nearly 10% year-on-year, with net profit of $6.29 billion after a prior-year loss. Although earnings per share fell marginally short of consensus, this strong top-line growth alongside improved cost controls is important for international investors focused on blue-chip stability and global health sector resilience, including those in the NZ financial community seeking reliable, dividend-paying US healthcare exposure.

UnitedHealth continues to offer a historically attractive valuation and steady dividend, supporting the interest of long-term investors in New Zealand. The company is currently trading at a price/earnings ratio of 12.49 and yields 2.82% on dividends – figures notably favorable among major global healthcare stocks. Analysts’ consensus targets point to roughly 33% upside potential, reinforcing UNH’s status as a compelling option for NZ-based investors looking to balance US dollar returns with ongoing income in their international equity allocations.

The appointment of Stephen J. Hemsley as CEO in May 2025 brings proven leadership experience and market reassurance, following recent turbulence. The abrupt CEO change initially triggered a short-term price drop, but Hemsley’s prior track record from 2006 to 2017 provides strategic continuity and a confidence boost, especially as the company navigates regulatory audits and higher-than-expected medical costs. For New Zealand institutional investors accustomed to managing governance risk in global holdings, this development reduces uncertainty around UnitedHealth’s forward strategy.

UnitedHealth’s global footprint and Optum technology services offer ongoing relevance for the New Zealand market, especially through health data and analytics partnerships. While UnitedHealth does not directly underwrite or operate in New Zealand, its Optum division is active in Australasian health IT, providing analytics, population health management, and claims processing solutions used by some NZ insurance and healthcare entities. This indirect presence enhances the stock’s relevance to NZ-based stakeholders and underlines its role in shaping broader health sector infrastructure and digital transformation in the region.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.