Shares of UnitedHealth (UNH) remain under pressure on March 23 after Zacks Research cut its first-quarter earnings estimates for the insurance company, citing persistently elevated medical expenses. The healthcare giant now sits firmly below its major moving averages (MAs), indicating a strong bearish trend that is unlikely to ease any time soon.
Following today’s drop, UnitedHealth stock is down about 18% since the beginning of 2026.
UNH stock continues to falter this year primarily due to the widening gap between stagnant reimbursement rates and rising medical expenses.
The Centers for Medicare and Medicaid Services (CMS) recently proposed a meager 0.09% rate increase by 2026, a figure that does not take into account increased utilization in outpatient surgeries and specialty care.
For a name like UnitedHealth, this rate reduction directly threatens profit margins across its massive Medicare Advantage portfolio.
Additionally, an intensifying antitrust investigation by the Justice Department into the synergy between Optum and its insurance division has created lingering headline risk, deterring conservative investors who previously viewed UNH as a safe-haven stock.
Despite the recent carnage, UnitedHealth stock remains attractive as it has now entered deep value territory.
With a forward earnings multiple of less than 16 times, the NYSE-listed company trades at a deep discount to its five-year historical P/E ratio, indicating that the worst regulatory scenarios are already in place.
Additionally, the aging U.S. population is another structural tailwind that could drive UNH stock higher as the year progresses.
Overall, with a strong balance sheet, a history of stable dividend payments, and an Optum division that continues to diversify revenue beyond pure insurance, UnitedHealth is fully committed to becoming a high-growth pharmaceutical and technology provider that can generate a much higher multiple.
It’s also worth mentioning that Wall Street analysts also remain bullish on UNH stock through the remainder of 2026.