UnitedHealth stock plunges: seven-day selloff wipes $30 billion in value amid cost fears

This article first appeared on GuruFocus.

UnitedHealth Group (NYSE:UNH) shares extended their losing streak Thursday, marking seven straight sessions in the red. The stock slipped about 2% to $321.5, bringing its total decline to nearly 8% over the past week. Year to date, UnitedHealth has dropped roughly 35%, significantly underperforming the broader S&P 500, which has gained about 16% over the same period.

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The managed care giant continues to face investor pressure as concerns grow around rising medical costs and regulatory scrutiny of its Medicare Advantage business. Analysts suggest that uncertainty around reimbursement rates and margins has weighed on sentiment.

Despite the weakness, some investors view the selloff as potentially overdone, noting that UnitedHealth remains one of the largest and most diversified players in U.S. health insurance, with a broad services footprint through its Optum division. Still, market participants appear cautious until clearer visibility emerges on cost trends and policy impacts.

Is UNH Stock a Buy?UnitedHealth stock plunges: seven-day selloff wipes $30 billion in value amid cost fears

Based on the one year price targets offered by 26 analysts, the average target price for UnitedHealth Group Inc is $389.62 with a high estimate of $440.00 and a low estimate of $198.00. The average target implies a upside of +21.16% from the current price of $321.56.

Based on the consensus recommendation from 30 brokerage firms, UnitedHealth Group Inc's (NYSE:UNH) average brokerage recommendation is currently 2.3, indicating a "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

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