This S&P 500 Stock Soared While the Market Plunged. Is It Still a Buy Now?

Roughly four out of five S&P 500 (SNPINDEX: ^GSPC) stocks are in negative territory in 2025. Most of those stocks weren't immune to the meltdown that occurred in recent days following President Trump's "Liberation Day" announcement of steep reciprocal tariffs.

However, most doesn't mean all. At least one S&P 500 stock soared as the market plunged. What is this outlier -- and is it still a smart pick to buy?

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Going against the grain

UnitedHealth Group (NYSE: UNH) has delivered a solid gain this year. Shares of the health insurance giant even held up pretty well in the immediate aftermath of the president's introduction of universal reciprocal tariffs.

What's more remarkable about UnitedHealth Group's performance in 2025 is that its strength especially showed up as the S&P 500 fell. At one point, the health insurance stock was down roughly 8% year to date, with an article in The Wall Street Journal that was critical of Medicare Advantage plans rattling some investors. The S&P 500 remained in positive territory at the time.

However, UnitedHealth Group went on a tear beginning in late February. This pivot was right around the time the overall stock market began to flounder.

The S&P 500 and other major market indexes have continued to languish as worries about a potential global trade war and recession mount. But UnitedHealth Group's momentum has accelerated.

Behind UnitedHealth Group's resilience

How has UnitedHealth Group's stock been so resilient while the S&P 500 slid into a sharp correction and came close to entering a bear market? One key reason is that the company's business is, for all practical purposes, immune to the negative impacts of tariffs.

Health insurers don't import products from other countries. Sure, UnitedHealth Group has operations in Europe and South America. However, those businesses don't affect what the company does in the U.S. or vice versa.

Furthermore, healthcare stocks as a group are often viewed as safe havens by many investors when there's significant uncertainty. Not only is UnitedHealth Group's business on solid ground during these times, but so are the businesses of many of the healthcare providers that its Optum unit serves.

UnitedHealth Group and other health insurers also received great news on April 8, from the Centers for Medicare and Medicaid Services (CMS). The agency announced a higher-than-expected payment increase in 2026 for Medicare Advantage plans.

The Senate confirmation of former TV show host and heart surgeon Dr. Mehmet Oz could bode well for UnitedHealth's prospects, too. Oz has been a longtime advocate of Medicare Advantage plans.

Should you buy the stock now?

Investors looking for a relatively stable stock to buy amid the overall market turbulence could like UnitedHealth Group. Its business is solid and continues to grow. The stock is also reasonably valued, with a forward price-to-earnings ratio of 17.6.

UnitedHealth Group looks even more of a compelling choice factoring in its growth prospects. Its price-to-earnings-to-growth (PEG) ratio, which incorporates analysts' five-year earnings growth projections, is 0.93, according to financial markets data and infrastructure provider LSEG. Any PEG ratio below 1.0 is considered to be an attractive valuation.

Income investors will probably like UnitedHealth Group's track record of increasing its dividend for 16 consecutive years. However, the health insurer's forward dividend yield of only 1.52% isn't anything to get excited about.

I think there are two things to be aware of before investing in UnitedHealth Group, though.

First, the company's OptumRx ranks as one of the largest pharmacy benefit managers (PBMs) in the U.S. PBMs have come under intense scrutiny by regulatory agencies. Both Democrats and Republicans in the U.S. Congress have criticized PBMs for allegedly contributing to higher healthcare costs. It's possible that the federal government could crack down on PBMs and hurt UnitedHealth Group's business.

Second, safe haven stocks sometimes don't perform well when the stock market is surging. No one knows how long the current market malaise will continue. Should negotiations between the U.S. and its major trading partners result in the removal or reduction of steep tariffs, stocks could again take off. UnitedHealth Group may or may not be one of them.

Should you invest $1,000 in UnitedHealth Group right now?

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Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.