UnitedHealth Group ($UNH) has long been a leader in managed healthcare and insurance. Recent volatility has given traders and investors a rare chance to accumulate this blue-chip stock at bargain levels. At The Contrarian Trader, we view $UNH as one of the strongest setups in the healthcare sector for both short-term swing trades and multi-year investments.

Two Tiers of Trading: Swing vs. Investment

We separate our trading into two distinct tiers:

1. Swing Trade Tier (1 week – 3 months): Fast-moving setups designed to capture momentum off support levels or catalysts.

2. Investment Tier (6 months – several years): Long-term positions in companies with durable fundamentals, strong balance sheets, and shareholder returns.

In our Swing Trade Tier, we currently own Centene Corp. ($CNC), a healthcare stock with greater Medicaid exposure. For our Investment Tier, we are steadily building positions in UnitedHealth Group ($UNH) — a more diversified giant with less reliance on Medicaid and a steady 3% dividend yield.

Building Positions at the Lows

We began accumulating $UNH at the lows in May and again on August 1, 2025, when the stock bottomed near $248.88. Using TrendSpider’s automated trendline detection, we identified this level as a critical support zone on both weekly and monthly charts. At the same time, we added CNC in August when it touched its own strong technical support levels.

This barbell approach — owning both UNH (lower Medicaid exposure, dividend strength) and CNC (higher Medicaid leverage) — gives us balanced exposure within the healthcare sector.

Congressional Buying: Timing the Bottom

The bullish case for UNH was reinforced just days after the August 1 bottom. On August 4, 2025, Rep. Marjorie Taylor Greene disclosed a purchase of $UNH shares, as reported by CapitolTrades.com. This trade aligned almost perfectly with the rebound off TrendSpider’s support line. As traders on Stocktwits often say, “don’t fade Congress” — and Greene’s buy became a strong confidence signal.

TrendSpider chart highlighting the August 1, 2025 low ($248.88), congressional buying activity (Aug. 4), and automated resistance levels at $297, $339, and $358.

Why UNH Is Undervalued?

Despite recent headwinds, UnitedHealth’s valuation is attractive. Bulls point out that UNH has traded as high as $600, making current levels a “half-off sale.”

• Forward P/E near 16 – attractive for a healthcare leader with massive cash flows【stocktwits.com】.
  

• Dividend yield ~3% – a payout that pays investors to wait.

• Oversold technicals – UNH’s RSI reached levels last seen during the global financial crisis【twstalker.com】.

• Upside targets – TrendSpider’s automated projections now point to $320, $339, and $358 as logical next resistance zones.

This technical roadmap suggests 30%+ potential upside from the August lows.

Stocktwits Sentiment: Extremely Bullish

Across Stocktwits, traders remain resolutely bullish on UNH. Common themes include:

• “Insiders are buying” – confidence signal【stocktwits.com】

• “Monster rally ahead” – predictions of sharp rebounds【stocktwits.com】

• “Recession-proof defensive play” – healthcare as a safe haven【in.investing.com】

This bullish sentiment, paired with congressional and institutional buying, underscores the conviction behind UNH’s recovery story.

Tools for the Modern Trader

At The Contrarian Trader, we rely on TrendSpider to identify automated trendlines, Fibonacci levels, and insider activity that most traders miss. Tools like these help us act decisively at support levels — as we did with UNH in May and August.

 Use our code CON35 to get 35% off TrendSpider.
Or get TrendSpider for free when you join our premium membership tier.

The Bottom Line

UnitedHealth ($UNH) stands out as a blue-chip healthcare leader trading at a discount. With congressional buying, oversold technicals, resilient fundamentals, and a dividend yield above 3%, the stock offers opportunity for both swing traders and long-term investors.

We’re building positions now and believe that patience will be rewarded as UNH retraces back toward fair value in the years ahead.

Disclosure: We are long $UNH (Investment Tier) and $CNC (Swing Trade Tier).

Sources: Stocktwits.com, CapitolTrades.com, TastyLive.com, TwStalker.com, Investing.com.