Mizuho Keeps Buy Rating on UnitedHealth Group (UNH) Stock

UnitedHealth Group Incorporated (NYSE:UNH) is one of the Oversold Fundamentally Strong Stocks to Buy Now. On August 7, Mizuho analyst Ann Hynes kept her “Buy” rating, expecting long-term value despite reducing the price objective to $300. The analyst noted that the company has reinstated its 2025 earnings guidance. The analyst believes that pricing pressure and increased medical cost trends will continue into 2026. Furthermore, the analyst also highlighted the underperformance in Optum Health’s value-based care and Optum Insight segments. Despite these factors, Hynes opines that UnitedHealth Group Incorporated (NYSE:UNH)’s scale, market position, and diversified business are the key strengths, and believes that the stock’s valuation is attractive.

A senior healthcare professional giving advice to a patient in a clinic.

UnitedHealth Group Incorporated (NYSE:UNH)’s Q2 2025 revenues increased $12.8 billion YoY to $111.6 billion. This was aided by growth in UnitedHealthcare and Optum. Notably, the Q2 2025 consolidated medical care ratio stood at 89.4%, reflecting an increase of 430 bps YoY. This was mainly because of medical cost trends, which significantly surpassed pricing trends, such as both unit costs and the intensity of services delivered, and the ongoing impacts of Medicare funding reductions.

Hotchkis & Wiley, an investment management company, released its Q2 2025 investor letter and mentioned UnitedHealth Group Incorporated (NYSE:UNH). Here is what the fund said:

“UnitedHealth Group Incorporated (NYSE:UNH) is a large US health insurer. Until very recently, UNH traded at a material premium to its peers, reflecting its status as a premium growth stock with momentum. We did not own the stock. However, recent negative headlines, combined with the first earnings miss in 10 years, resulted in a >50% selloff in the company’s shares. This decline contributed positively to the strategy’s relative performance vs. the index, where UNH was a meaningful weight. We purchased UNH shares after the selloff at what we believe is a compelling valuation.”

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Disclosure: None. This article is originally published at Insider Monkey.