From Nasdaq: 2025-05-16 14:10:00

UnitedHealth Group (UNH) shares plummeted by over 30% following news of a criminal investigation for Medicare fraud, now trading 60% below all-time highs. Investors should consider the “three-day rule” before buying, waiting for stabilization. The company’s valuation is attractive and forecasts suggest undervaluation, but caution is advised due to a Zacks Rank #5.

Alternative insurance stocks like The Progressive (PGR) and HCI Group (HCI) offer better momentum and rankings. PGR remains strong with steady growth, while HCI focuses on homeowners’ insurance in catastrophe-prone states. Both hold a Zacks Rank #2 (Buy) and show strong price momentum.

Investors eyeing UnitedHealth stock must navigate the current uncertainty carefully, with the Zacks Rank indicating caution. Looking beyond health insurance, The Progressive and HCI Group present better opportunities for growth and momentum. The three-day rule remains a valuable tool for timing entry into falling stocks.



Read more at Nasdaq: After 30% Slide, is UNH Stock a Buy? Use the 3-Day Rule to Decide