UnitedHealth Group Inc (NYSE:UNH) is higher in premarket trading, up 2.7% at $387.01, after Bank of America upgraded the health insurer to "buy" from "neutral" and lifted its price target to $450 from $420. The analyst cited improving medical cost trends and a favorable setup heading into second-quarter earnings, arguing the stock offers an attractive risk/reward profile.
This bull note arrives as UnitedHealth stock attempts to resume its longer-term uptrend. Shares are up 25.2% over the last 12 months and 14.2% in 2026, though the equity has pulled back from its May 13, 52-week high of $404.08. Today's move has UNH looking to snap a five-day losing streak. This bounce could've already been in the cards, per UNH's 14-day relative strength index (RSI) of 25.5.
Options traders are pricing in low volatility expectations, per its Schaeffer's Volatility Index (SVI) of 31%, which ranks in the low 22nd percentile of its annual range. UnitedHealth stock also sports a Schaeffer's Volatility Scorecard (SVS) of 96 out of 100, indicating the stock has consistently exceeded these volatility expectations during the past year.
