Managed care stock sell-off could be a buying opportunity, says Wells Fargo (HUM)

Managed care stocks could be a buying opportunity despite concerns that a higher-than-expected uptick in Medicare procedures will likely weigh on corporate profits in the near-term, according to Wells Fargo.

Last week saw a significant sell-off in the sector, triggered by remarks made by UnitedHealth management on June 14 that it was seeing an unanticipated increase in procedures for Medicare Advantage patients, which it attributed to pent-up demand from the pandemic.