UnitedHealth Reported Rising Revenue. Options Data Tells Us Where UNH Stock Could Be Headed Next.

Core Insights - UnitedHealth (UNH) reported strong Q3 results, exceeding expectations in both revenue and earnings, leading to an increase in full-year guidance [1][2] - The company anticipates adjusted earnings of $16.25 per share in 2025, up from a previous forecast of $16 [2] - UNH stock has risen approximately 60% since its August low, reflecting positive market sentiment following the earnings report [2] Financial Performance - The medical care ratio remains high, but earnings indicate that strategic initiatives by CEO Stephen Hemsley are yielding positive results [3] - Cash flow for Q3 was robust at $5.9 billion, indicating operational improvements and strong underlying financial health [3] Future Outlook - Management is targeting double-digit growth by 2027, demonstrating confidence in navigating cost pressures while expanding both Optum and the core insurance business [4] - The stock offers a healthy dividend yield of 2.38%, making it attractive for investors heading into 2026 [4] Market Sentiment - Options traders are optimistic about continued upside for UNH shares, with potential for a 10.3% increase based on January 16 contract pricing [5] - The expected price movement suggests UNH shares could reach $391 by November 7, with a significant volume of call options indicating bullish sentiment [5] Technical Analysis - UnitedHealth is approaching its 200-day moving average around the $390 level, with a breakout above this level potentially paving the way for further gains in 2026 [7] Analyst Consensus - Wall Street remains bullish on UNH stock following the positive quarterly results, indicating strong market confidence in the company's performance [8]