UnitedHealth (UNH) Poised to Benefit as Investor Focus Shifts Away From AI, Says Barclays

UnitedHealth Group Incorporated (NYSE:UNH) is included among the 12 Best DOW Stocks to Buy in 2026.

On January 5, Barclays analyst Andrew Mok raised his price target on UnitedHealth Group Incorporated (NYSE:UNH) to $391 from $386 and kept an Overweight rating. The firm expects managed care stocks to benefit in 2026 as margins recover and investor attention shifts away from artificial intelligence names toward stocks that have been left behind.

UnitedHealth’s share price tells a tougher story in the near term. The stock is down nearly 35% in 2025. Higher-than-expected visits to doctors and surgeons weighed on results, driving up medical costs. In May, the company suspended its full-year profit forecast after posting its first quarterly earnings miss in more than a decade.

Management pointed to rising utilization. More doctor visits and surgeries meant higher insurance payouts, and the company said it could not reliably estimate how much those costs might climb. Pulling guidance added uncertainty, and investors reacted quickly. That decision became a clear warning sign for the market and helped fuel the stock’s sharp decline this year. UnitedHealth’s adjusted EPS for 2025 is expected to be at least $16.25. Any outlook for 2026 that comes in only modestly above that level may prompt investors to stay cautious.

UnitedHealth Group Incorporated (NYSE:UNH) operates across health insurance and health services. Its businesses include Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare, which serves employer, individual, Medicare, retirement, and government-sponsored plans.

While we acknowledge the potential of UNH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.