Jim Cramer Says to Buy UnitedHealth Group Stock. Is He Right?

After falling to $255 per stock successful precocious March, UnitedHealth Group (NYSE: UNH) banal has been connected a heater. The starring wellness insurer has skyrocketed immoderate 57% since March 30 and is presently trading astatine $408 per share. It went from being down 22% twelvemonth to day arsenic of March 30 to being up 24% twelvemonth to day arsenic of June 22.

The large catalyst for the caller spike is simply a determination by the Centers for Medicare & Medicaid Services (CMS) to rise Medicare Advantage insurers' rates by 2.48% successful 2027.

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And Jim Cramer, big of CNBC's Mad Money, thinks it has much country to run. He said connected his amusement recently:

Finally, we person UnitedHealth. It's different managed attraction play that's up for the aforesaid crushed arsenic Humana. The banal pulled backmost this afternoon, but the legendary CEO, Steve Hemsley, is back, and he's truthful good. A brutal stint of atrocious absorption earlier helium got there. He's turning it around. UnitedHealth, bargain it.

Cramer besides called UnitedHealth a "textbook information stock." Is helium right?

UNH is inactive a bargain

The Mad Money big is perfectly connected the wealth with this call. UnitedHealth banal is inactive a bargain, adjacent aft its caller surge.

While its valuation has crept up, it is inactive trading astatine conscionable 21 times guardant earnings. That's due to the fact that it's inactive down considerably from the near-$600-per-share terms it deed conscionable implicit a twelvemonth agone successful April 2025, earlier the tariff crash.

It whitethorn not instrumentality to $600 anytime soon, but 77% of Wall Street analysts complaint it a buy, with a median terms people of $420 per share.

Here are 4 speedy reasons wherefore UnitedHealth banal is simply a buy:

1. It smashed net estimates past quarter.

2. It raised its 2026 net guidance.

3. It's got a precocious output and a accordant dividend.

4. As a large healthcare stock, it tends to execute good successful marketplace downturns, making it a large antiaircraft play.

Should you bargain banal successful UnitedHealth Group close now?

Before you bargain banal successful UnitedHealth Group, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and UnitedHealth Group wasn't 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

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