Controversial UnitedHealth Group Incorporated (UNH.US) is expected to break out of its stock price slump? Raymond James adds it to "Preferred Stock List"

Recently, the well-known investment institution Raymond James on Wall Street added the American healthcare insurance giant UnitedHealth Group Incorporated (UNH.US) to its "preferred stock list," while removing GoodRx (GDRX.US) from the institution's preferred list. Typically, when a stock is included in an institution's preferred stock list on Wall Street, it can quickly boost the stock's performance in the short term, and even potentially trigger a new round of long-term price increases. This also means that since the CEO of UnitedHealth Group Incorporated, Luigi Manzione, was gunned down and the company was pushed to the forefront of public opinion due to long-term dissatisfaction with the American health insurance compensation system, leading to a sharp decline in the stock price, the stock may see a rebound. Raymond James added UnitedHealth Group Incorporated to its list of favorite stocks in a research report, citing reasons such as the recent underperformance of the stock compared to the S&P 500 index, indicating a potential "oversold rebound" after a significant decline in the short term. Meanwhile, the institution removed the leading American digital healthcare service provider GoodRx from its "preferred stock list." Raymond James stated that its optimistic view on UnitedHealth Group Incorporated's stock price trend is mainly based on the potential significant improvement in fundamentals by 2025 and business model changes driven by news headlines, possibly starting from the MA Advanced Rate Notification expected at the end of January. The investment institution also expressed that it does not believe the incoming Trump administration at the federal level will be more hostile than the previous US government regarding the Medicare Advantage program. Furthermore, Raymond James believes that the 2025 performance forecast of UnitedHealth Group Incorporated is "conservative, especially in terms of MLR assumptions and expectations." "We believe that with easing competition and gradually improving sales, the market expects significant growth in 2026, reassessing its actual value and fundamental outlook. The stock is expected to gradually strengthen from 2025," the investment institution added. However, Raymond James has removed GoodRx from its preferred stock list. The institution stated: "Although we remain optimistic about the stock, the measures to turn losses into profits may take more time to show tangible results in company financial performance, while other healthcare insurance or digital healthcare service companies within our research scope offer more attractive risk/reward opportunities." In December 2024, UnitedHealth Group Incorporated CEO Brian Thompson was shot and killed in Manhattan, New York. This incident not only triggered strong criticism of the American health insurance industry nationwide, but the gunman was even seen as a "modern Robin Hood," with some American people initiating crowdfunding campaigns in his defense. The event also caused the stock price of UnitedHealth Group Incorporated to plummet since December. As the largest private health insurance company in the US, UnitedHealth Group Incorporated has long been criticized by the American public for denying claims, complex claims processes, and raising patient costs. The shooting incident became a focal point for public dissatisfaction with the health insurance industry, with social media filled with criticism of UnitedHealth Group Incorporated by Americans. Many shared stories of themselves or loved ones facing difficulties due to insurance claim denials. Gunman Luigi Manzione left behind bullet casings engraved with "delay, deny, defend," phrases commonly used to criticize insurance company strategies. This act was interpreted as a protest by Luigi and many other long-term dissatisfied Americans against the entire American insurance industry's business model regarding the compensation system. The extreme anger of Americans towards healthcare insurance giants also spread to the stock market, leading retail and institutional investors to sell UnitedHealth Group Incorporated significantly in a short period, causing a sharp decline in the stock price, which has plummeted by up to 16% since December, a rare occurrence for this large-cap stock with typically low volatility. The shooting incident sparked a new round of criticism of the commercial model of the health insurance industry by the public, including issues such as denying claims and raising patient costs. These extreme negative sentiments prompted the financial market's attitude toward UnitedHealth Group Incorporated to shift to cautious in the short term, leading to selling or profit-taking.