Why UnitedHealth Stock Is Sinking Again Today
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S of UnitedHealth Group (UNH -5. 62%) are falling today, down 4. 5% as of 2:41 p. The drop comes as the S&P 500 (^GSPC 0. 47%) gained 0. 3% and...
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investment
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July 2, 2025
03:32 PM
The Motley Fool
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S of UnitedHealth Group (UNH -5. 62%) are falling today, down 4. 5% as of 2:41 p
The drop comes as the S&P 500 (^GSPC 0. 47%) gained 0. 3% and the Nasdaq Composite (^IXIC 0. 94%) gained 0
The troubled health insurance giant is seeing its stock slide after a fellow insurer announced it was pulling its full-year guidance
Centene pulls guidance Centene, a rival insurer, announced late Tuesday that it is pulling its previously set earnings and revenue guidance for 2025
The company said that new data from its Affordable Care Act plans was so poor that it would need to readjust
Centene said that preliminary data indicated it will need to cut its previous 2025 earnings per (EPS) target of $7
Mizuho analyst Ann Hynes told investors this morning she believes it could be cut by as much as half
The massive downward adjustment is the in a string of bad news for the insurance industry, leading to stocks slipping across the board
Image source: Getty Images
A year of troubles The company is under investigation by the DOJ for fraudulent billing practices in its Medicare division, and a recent investigative report by The Guardian revealed that UnitedHealth has been making secret bonus payments to nursing s in order to keep ailing residents out of hospitals and money
The report also claims the company staffed nursing s with its own medical teams who, at times, interfered in order to keep residents who needed hospital care from receiving it
There are just too many issues facing UnitedHealth at the moment, with no picture of an imminent turnaround
This once-seemingly stable investment looks far from it at the moment, and I would stay away from the stock
Johnny Rice has no position in any of the stocks mentioned
The Motley Fool recommends UnitedHealth Group
The Motley Fool has a disclosure policy.
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