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A Notable After-Hours Move

Shares of this portfolio name are trading lower after the close. Here's how I'd play it tomorrow.
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UnitedHealth Group (UNH) is down about 4 points in after-hours trading from Monday's closing price of $45.07 on word that fellow health insurer WellPoint (WLP) cut its full-year profit guidance by about 10%. WellPoint is also down about 11 points, or 17% in after-hours trading.

WellPoint cited higher medical costs for the warning, which is an issue that could very well come to affect the entire industry. That said, I believe that UnitedHealth shares are overreacting to this news.

It's too crazy to try to do anything now, but if UnitedHealth were to open under $40 Tuesday morning, in a market that's already looking oversold, I'd be a buyer if my restrictions allow.

Regards,

Jim Cramer

DISCLOSURE: At the time of publication, Cramer was long UnitedHealth Group.

Send email to james.cramer@thestreet.com.