12 Most Undervalued Dow Stocks to Buy According to Analysts

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7. UnitedHealth Group Incorporated (NYSE:UNH)

Price Target Upside: 13.08% 

PE Ratio: 14.94 

UnitedHealth Group Incorporated (NYSE:UNH), a leading U.S. healthcare and insurance provider, serves over 51 million members through its UnitedHealthcare and Optum divisions, offering insurance, pharmacy, and data-driven health services.

In September 2025, UNH launched a direct-to-consumer digital platform designed to simplify plan selection and enhance convenience for members, highlighting the company’s focus on technology-driven customer solutions.

Financially, UnitedHealth Group Incorporated (NYSE:UNH) reported Q2 2025 revenues of nearly $112 billion, a 13% year-over-year increase, with Optum contributing $67.2 billion, up 6.8%. Truist Securities reaffirmed its “Buy” rating on the stock and raised the price target to $365, citing preliminary data indicating that 78% of members are expected to be enrolled in plans rated four stars or higher for 2027. The corporation reaffirmed its 2025 EPS guidance of at least $16, though integration of its Amedisys acquisition may create short-term earnings pressure.

Despite strong performance, UNH faces regulatory and legal challenges, including a criminal investigation into Medicare billing practices. CEO Stephen Hemsley, who resumed leadership in May 2025, is actively engaging with government officials to address policy issues affecting Medicare Advantage plans. Insider stock purchases by directors and Hemsley signal confidence in the company’s recovery prospects.

Investor interest remains robust. UnitedHealth Group Incorporated (NYSE:UNH) ranked highest among the most popular hedge fund holdings in Q2 2025, and Warren Buffett’s Berkshire Hathaway disclosed a $1.57 billion investment, reinforcing confidence in the company’s long-term value.

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