Why UnitedHealth stock slid another 4% today

Core Viewpoint - UnitedHealth Group Inc. is facing significant challenges, including a Department of Justice investigation into its Medicare practices, leading to a sharp decline in its stock price and raising concerns about its recovery potential [1][2][3]. Group 1: Stock Performance - UnitedHealth's stock has seen a decline of approximately 44% year-to-date, currently trading at $281.49 in pre-market hours [2]. - The stock hit a low of $274.35 in May 2025, but recent news regarding the DOJ investigation threatens to hinder any recovery [2]. - The stock is considered one of the most oversold in the S&P 500 for 2025 [2]. Group 2: DOJ Investigation - The company has begun complying with formal requests from the Department of Justice regarding its Medicare program practices [3]. - UnitedHealth proactively reached out to the DOJ after media reports about the investigations, expressing confidence in its practices [3]. - The company has initiated third-party reviews to assess its policies and practices, although it acknowledged uncertainty regarding the investigation's outcome [3]. Group 3: Analyst Outlook - Wall Street analysts maintain a generally positive long-term outlook for UnitedHealth, with a "Moderate Buy" consensus based on 24 ratings [4]. - The average 12-month price target for the stock is $356.36, with forecasts ranging from a low of $270.00 to a high of $440.00 [6]. - Investors are anticipating insights from the upcoming Q2 earnings report on July 29, 2025, to understand the impact of current challenges on the business [6].