From Nasdaq: 2025-02-24 09:03:00

UnitedHealth Group Inc. (NYSE: UNH) stock has plummeted 30% following a Department of Justice investigation into its Medicare Advantage business. Despite the drop, the stock rebounded 7% on Friday, signaling potential for further gains. Analysts maintain Buy ratings with price targets suggesting over 50% upside, making it an attractive entry point.

UnitedHealth’s fundamentals remain strong with solid earnings and forward guidance. Analysts are bullish, reiterating Buy ratings with price targets between $650 and $700. The stock’s recent oversold conditions and potential for a rebound make it an intriguing opportunity for traders and investors.

While UnitedHealth’s stock may be undervalued, the DoJ investigation poses a significant risk. Investors have been rattled by scrutiny into the company’s practices, and the stock has erased three years of gains. Long-term holders may want to consider the implications of ongoing investigations and the stock’s performance relative to the market.

Despite the risks, UnitedHealth presents an attractive oversold bounce setup for short-to medium-term traders. The RSI indicates extremely oversold conditions, leading to a potential sharp rebound. With strong fundamentals and analyst endorsements, the stock could quickly recover losses and offer a compelling risk-reward opportunity for traders.



Read more at Nasdaq:: UnitedHealth’s RSI Suggests It Is Extremely Oversold