As Trump Unveils His ‘Great Healthcare Plan,’ How Should You Play UnitedHealth Stock?

Group 1 - UnitedHealth (UNH) shares are in focus following President Trump's announcement of the "Great Healthcare Plan," which aims to lower costs, expand access, and boost competition in the healthcare sector [1][3] - The stock has increased approximately 42% compared to its 52-week low, indicating a significant recovery [2] - The new healthcare initiative presents both challenges and opportunities for insurance companies like UnitedHealth, with potential near-term profitability pressures due to lower costs, but long-term growth prospects from expanded coverage pools [3] Group 2 - UnitedHealth's net margin has declined to 2.1% in the latest reported quarter, reflecting ongoing margin pressures [4] - The company faces regulatory and reputational risks due to new Medicare accusations and a DOJ investigation into its billing practices, which could hinder growth through 2026 [5] - The stock is currently trading at about 19 times forward earnings, significantly higher than Cigna's 9 times, indicating it may not be an inexpensive investment following a recent rally [6] Group 3 - Despite the challenges, Wall Street remains optimistic about UnitedHealth, with a consensus rating of "Moderate Buy" and a mean target price of approximately $397, suggesting an upside potential of around 18% [8]