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Healthcare stocks are typically seen as defensive plays, especially during market uncertainty, but even industry giants aren't immune to volatility. UnitedHealth Group (UNH), once considered a reliable pillar in the managed care space, has suffered a stock decline of more than 44% in 2025. The selloff has been fueled by a mix of rising costs in its Medicare Advantage segment, a surprise CEO exit, and ongoing federal scrutiny into its billing practices.
Despite these significant headwinds, Bernstein is bullish on UNH. The brokerage firm recently named UnitedHealth one of its “Top Picks” ahead of Q2 earnings, pointing to its discounted valuation and the potential for a strong margin recovery in the coming years. Bernstein also sees normalization in Medicaid and Medicare Advantage trends, and is expecting UNH’s earnings to double by 2029, at a compound annual growth rate (CAGR) of 19%.
