Why UnitedHealth Stock Is Crashing This Week

Shares of UnitedHealth Group (NYSE: UNH) are plummeting this week. The company's stock is down 27.4% as of 12:29 p.m. ET. The collapse comes as the S&P 500 (SNPINDEX: ^GSPC) gained 4.7% and the Nasdaq-100 gained 6.4%.

It was reported this week that the troubled health insurance giant is facing a criminal investigation from the Department of Justice (DOJ). The report came just days after its CEO stepped down unexpectedly and the company pulled its full-year earnings guidance.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

UnitedHealth is facing another DOJ probe

The Wall Street Journal reported late Wednesday that the DOJ's Health Care Fraud Unit is conducting a criminal investigation into the company for possible Medicare fraud. According to the report, the investigation has been ongoing since at least last summer.

This isn't the first, however. The DOJ is already investigating the company's Medicare unit in a civil case.

Image source: Getty Images.

UnitedHealth's CEO abruptly exits as the company pulls guidance

Earlier in the week, CEO Andrew Witty said he would step down for "personal reasons." On the same day, the company announced it was suspending its annual earnings forecast, citing rising medical costs.

In a call for investors, chairman and now CEO Stephen Hemsley apologized: "I'm deeply disappointed in and apologize for the performance setbacks we have encountered from both external and internal challenges." The suspension follows an already lowered forecast and earnings miss revealed in April.

All of this has shaken investor confidence in the healthcare giant, and its shares have plummeted 50% in just 23 trading days, marking the most severe drop for an S&P 100 company since Netflix fell 54% in May 2022, according to Dow Jones Market Data.

There are just too many issues facing UnitedHealth at the moment, and this once seemingly stable investment looks far from it at the moment. I would stay away from UnitedHealth stock.

Should you invest $1,000 in UnitedHealth Group right now?

Before you buy stock in UnitedHealth Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and UnitedHealth Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $826,385!*

Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 171% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 12, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.