Will UnitedHealth's Push for Access to Trump Calm Investor Jitters?

UnitedHealth Group Incorporated UNH, facing criminal and civil investigations into its Medicare Advantage business and financial pressure from new federal billing rules, has stepped up the lobbying efforts in Washington, per the Wall Street Journal. The company has almost doubled its lobbying budget this year so far, hiring lawyers and lobbyists closer to President Trump’s administration officials.

Its leadership reportedly held high-level meetings with Justice Department and White House officials to discuss policy, billing and ongoing probes. UnitedHealth also changed its legal team, bringing in attorneys with closer ties to President Trump. These moves reflect UNH’s efforts to manage regulatory risks, protect its Medicare Advantage revenues and stabilize investor confidence.

According to the WSJ, the company is seeking a meeting with President Trump, though discussions have not yet been finalized. The outreach comes as the administration advances its “most favored nation” policy, designed to reduce drug prices and enhance market transparency.

UnitedHealth, the industry’s largest insurer, remains a key player given its scale and influence. The company is currently in the turnaround phase with CEO Stephen Hemsley back on the helm. Investor confidence has been reinforced by Warren Buffett’s Berkshire Hathaway Inc.’s (BRK.B) purchase of more than 5 million shares in the second quarter, representing an investment of around $1.57 billion.

The Journal also highlighted a slight uptick in lobbying spending at both Humana Inc. HUM and The Cigna Group CI. Market concerns around Medicare Advantage remain elevated, particularly following reports that higher “cut point” thresholds may challenge Humana’s ability to achieve quality bonus payments. Shares of Humana moved lower on the news, reflecting investor caution.

Cigna, by contrast, has strategically scaled back its Medicare Advantage presence through selective divestitures. Management is redirecting focus toward health services and commercial insurance, segments that carry lower regulatory complexity and more favorable margin dynamics. This repositioning is expected to enhance profitability and expand Cigna’s presence in less volatile areas of the healthcare market.

UnitedHealth’s Price Performance, Valuation and Estimates

Thanks to recent jumps in share price, UNH’s year-to-date decline was reduced to 30.3%. The industry declined 24.3% during this time.

From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 20.65, up from the industry average of 16.36. UNH carries a Value Score of C.

The Zacks Consensus Estimate for UnitedHealth’s 2025 earnings is pegged at $16.21 per share, implying a 41.4% drop from the year-ago period.

The stock currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research