Jim Cramer Says to Buy UnitedHealth Group Stock. Is He Right?
Key Points
UnitedHealth Group's stock price has jumped almost 40% in the past two months.
Is Cramer right about UnitedHealth?
After falling to $255 per share in late March, UnitedHealth Group (NYSE: UNH) stock has been on a heater. The leading health insurer has skyrocketed some 57% since March 30 and is currently trading at $408 per share. It went from being down 22% year to date as of March 30 to being up 24% year to date as of June 22.
The major catalyst for the recent spike is a move by the Centers for Medicare & Medicaid Services (CMS) to raise Medicare Advantage insurers' rates by 2.48% in 2027.
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And Jim Cramer, host of CNBC's Mad Money, thinks it has more room to run. He said on his show recently:
Finally, we have UnitedHealth. It's another managed care play that's up for the same reason as Humana. The stock pulled back this afternoon, but the legendary CEO, Steve Hemsley, is back, and he's so good. A brutal stint of bad management before he got there. He's turning it around. UnitedHealth, buy it.
Image source: Getty Images.
Cramer also called UnitedHealth a "textbook safety stock." Is he right?
UNH is still a bargain
The Mad Money host is absolutely on the money with this call. UnitedHealth stock is still a bargain, even after its recent surge.
While its valuation has crept up, it is still trading at just 21 times forward earnings. That's because it's still down considerably from the near-$600-per-share price it hit just over a year ago in April 2025, before the tariff crash.
It may not return to $600 anytime soon, but 77% of Wall Street analysts rate it a buy, with a median price target of $420 per share.
Here are four quick reasons why UnitedHealth stock is a buy:
- It smashed earnings estimates last quarter.
- It raised its 2026 earnings guidance.
- It's got a high yield and a consistent dividend.
- As a major healthcare stock, it tends to perform well in market downturns, making it a great defensive play.
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Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
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