Can UnitedHealth turn it around?

 UnitedHealth Group's (NYSE:UNH) stock has plunged nearly 40% year-to-date as the healthcare company has grappled with crisis after crisis, including the aftermath of a massive cyberattack, the murder of a top executive, unexpectedly higher costs, and federal investigations into its business practices.

Shares of the managed care giant were battered yet again on Tuesday after the company withdrew its 2025 financial guidance and announced that CEO Andrew Witty had resigned. Witty will be succeeded by UnitedHealth Chairman Stephen Hemsley, who served as also CEO of the company from 2006 to 2017.

So, what's next for UnitedHealth (NYSE:UNH)? Can the healthcare juggernaut turn it around?

We asked Seeking Alpha analysts JR Research, Investing Group Leader for Ultimate Growth Investing, and Dr. Christopher Davis of Quad 7 Capital for their thoughts on what lies ahead.

JR Research: UnitedHealth (UNH) stunned investors by changing its CEO abruptly, although the transition is assessed to be "less disruptive" as new CEO Stephen Hemsley has proved himself as he previously led UNH between 2006 and 2017 and is also its current chair. During his tenure as CEO, Hemsley also helped shape UnitedHealth (UNH) into the monolith that we know today. 

It remains to be seen, however, whether Hemsley's return can reinvigorate a remarkable turnaround amidst the current regulatory headwinds, pricing and utilization challenges emanating from its aggressive enrollment growth. With management maintaining its confidence of returning UNH to its long-term growth trajectory of between 13% to 16%, I believe the UNH story isn't dead yet, suggesting investors must focus on execution over the next two to three quarters to assess the plausible turnaround opportunity further. 

Quad 7 Capital: After this last kitchen sink flush, we highlighted that UNH was in chaos, but presented a potential generational entry opportunity into a world class, blue chip stock. 

Look, a surprise overnight CEO exit and uncertainty around WHY the company is experiencing high costs, on top of its Q1 report and guidance cut, deserved a selloff. But the stock is incredibly cheap historically. Bringing back a tremendous leader in Stephen Hemsley is bullish. He will right the ship. 

We are not saying this stock returns to $500-$600 in a few weeks. But we do think the stock finds a base at around $300. We suggested readers consider buying in $15 drops on the day of the flush. We think that while catching the bottom is improbable, it is possible; this is the type of selloff you have to take advantage of. 

We expect as early as the Q2 earnings we will get some sort of guidance. If not, then in Q3. We will get more clarity on the costs and the plan to address it. For traders with a medium-term horizon, look for a mean reversion trade back over $350-$360 later this year, provided the outlook does not change to project no growth in 2026. 

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