A wave of stock sell-offs in the managed care industry represent a buying opportunity, according to analysts at Wells Fargo. The sell-offs were sparked by comments from UnitedHealth and Humana that noted an uptick in procedures covered by Medicare Advantage plans that were likely postponed during the pandemic.
According to Val Brickates Kennedy, “Managed care stocks were hit hard by the news. Humana (NYSE:HUM) has been the worst performer over the past five days, with shares falling 14%, while UnitedHealth (NYSE:UNH) dropped 7%, Elevance (NYSE:ELV) fell 6%, Centene (NYSE:CNC) and CVS Health (NYSE:CVS) both shed 5%, and Molina Healthcare slipped 2%. Cigna was the outlier (NYSE:CI), inching up 1%. In comparison, the S&P 500 (SP500) rose 2%.”
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(Source: Seeking Alpha, June 19th, 2023)