Unsurprisingly
$UnitedHealth(UNH)$ has beenthe talk of the town with its 50% YLD decline. Some people might be tempted to "buy the dip" but is the decline a hoax like they think, or will it go down further? Here's why I think the stock might extend the current decline:
- Trade war started by Trump is not going to end anytime soon with probes into the healthcare industry and drug price pressures from the WH;
- Abrupt CEO transition earlier this year shows a bigger weakness within the UNH management ranks;
- The company is undergoing an investigation into possible Medicare fraud;
- In April 2025, the company revised its full year profit forecast downward due to higher-than-expected medicare costs;
- Complete withdrawal of 2025 outlook citing uncertainties and rising costs.
=> My position on $UnitedHealth(UNH)$ is bear.
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