ELV

Centene Corporation CNC is rebuilding its Marketplace business after a difficult 2025, with better pricing, moderating medical costs and improved underwriting dynamics supporting a sharp improvement in profitability. The recovery is becoming an important contributor to Centene’s broader margin-restoration strategy. The Marketplace health benefits ratio improved to 79.2% in the second quarter of 2026 from 90.6% a year ago. The improvement reflected better medical cost trends and risk-adjustment dynamics. Centene also benefited from a $180 million favorable 2025 CMS risk-adjustment reconciliation during the quarter. Importantly, the improvement is not dependent solely on membership expansion. Marketplace membership stood at around 3.5 million at the end of June 2026, down substantially from 5.9 million a year ago. However, the business is now expected to generate a 4.5%-5% pretax margin in 2026, compared with the previous 3% outlook. This suggests that tighter pricing and a more favorable risk profile are helping Centene prioritize profitability over volume. The key challenge now is sustaining those gains as eligibility reviews could cause further membership attrition in the second half of 2026. Centene’s 6.9% adjusted SG&A expense ratio in the second quarter of 2026, which improved from 7.1% a year ago, and increased use of technology, automation and AI could provide another layer of support. If these trends hold, the Marketplace business could provide a more dependable earnings contribution and support Centene’s overall profit growth over time. Some of CNC’s major competitors in the healthcare service provider space are UnitedHealth Group Incorporated UNH and Elevance Health, Inc. ELV. UnitedHealth is taking a more selective approach to its individual exchange business, with pricing and benefit adjustments aimed at better aligning premiums with medical costs. UNH’s medical care ratio improved to 86.7% in the second quarter of 2026 from 89.4% a year ago. Elevance is also working to improve Individual ACA profitability through tighter pricing and plan repositioning. ELV is also investing in clinical oversight, payment integrity and value-based care to improve cost management and support more consistent margins. Shares of CNC have surged 56.4% in the year-to-date period compared with the industry’s rise of 20%. Image Source: Zacks Investment Research From a valuation standpoint, Centene trades at a forward price-to-earnings ratio of 12.39, below the industry average of 15.83. CNC carries a Value Score of A. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $4.89 per share, implying 135.1% growth from the year-ago period. Image Source: Zacks Investment Research CNC stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Centene Corporation (CNC) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Icon PLC (ICLR). Shares have added about 2.5% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Icon PLC due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts. ICON posted second-quarter 2026 adjusted earnings per share of $2.56, down 21.5% from the year-ago period’s reported figure. The metric missed the Zacks Consensus Estimate by 0.4%. The company reported GAAP EPS of 94 cents compared with $2.56 a year ago. Total revenues increased 1.4% year over year to $2.06 billion. The figure was up 0.4% on a constant-currency (CER) basis. The metric surpassed the Zacks Consensus Estimate by 3.5%. The company reiterated full-year financial guidance for 2026 with revenues expected in the range of $7.85-$8.15 billion. The Zacks Consensus Estimate for the metric is currently pegged at $8.09 billion. Adjusted EPS is expected to be in the range of $10.00-$11.00. The Zacks Consensus Estimate for ICON’s earnings is pegged at $10.61 per share. In the past month, investors have witnessed a downward trend in estimates revision. At this time, Icon PLC has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Icon PLC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Icon PLC belongs to the Zacks Medical Services industry. Another stock from the same industry, Elevance Health (ELV), has gained 6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Elevance Health reported revenues of $49.83 billion in the last reported quarter, representing a year-over-year change of +0.8%. EPS of $7.45 for the same period compares with $8.84 a year ago. Elevance Health is expected to post earnings of $4.80 per share for the current quarter, representing a year-over-year change of -20.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%. Elevance Health has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ICON PLC (ICLR) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Medpace (MEDP). Shares have added about 1.1% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Medpace due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Medpace Holdings, Inc. before we dive into how investors and analysts have reacted as of late. Medpace Holdings, Inc.reported second-quarter 2026 earnings of $4.25 per share, up 37.1% year over year. The figure beat the Zacks Consensus Estimate by 4.17%. Revenues rose 17.2% to $707.33 million and surpassed the consensus mark by 1.12%. On a constant-currency basis, growth was also 17.2%, indicating that foreign exchange had little effect on the reported expansion. Medpace Posts Record Quarterly Awards Net new business awards jumped 28.2% to $795.7 million, driving a net book-to-bill ratio of 1.13. Management attributed the record net bookings performance partly to a meaningful decline in cancellations from elevated first-quarter levels. Backlog as of June 30, 2026 rose 4.9% year over year to $3.01 billion. Medpace expects about $1.96 billion of backlog to convert into revenues over the next 12 months. The quarterly backlog conversion rate increased to 24.1% from 21.2% a year ago. MEDP Sees Oncology Regain Momentum Management said oncology accounted for more than half of second-quarter bookings and initial award notifications. This marked a shift from the recent period when cardiometabolic programs were a larger contributor to business growth. Medpace expects oncology to move back toward a more historically typical share of its portfolio over the next year. Cardiometabolic award notifications have moderated, while oncology opportunities have strengthened. The company also reported meaningfully higher request-for-proposal activity both sequentially and year over year. Medpace Highlights Cash Position and Buybacks Cash and cash equivalents totaled $502.7 million at the second quarter-end compared with $652.7 million as of March 31, 2026. Net days sales outstanding remained favorable at negative 59.6 days. Cumulative cash flow from operating activities came in at $162 million compared with $274.4 million a year ago. MEDP repurchased approximately 706,000 shares for $294.7 million during the second quarter. The company had $527 million remaining under its authorized share repurchase program at quarter-end. MEDP Raises Its 2026 Outlook Medpace now expects 2026 revenues of $2.805-$2.885 billion, implying growth of 10.9%-14% over 2025 levels. The Zacks Consensus Estimate for revenues stands at $2.84 billion. EBITDA is projected between $618 million and $642 million, suggesting growth of 10.8%-15.1%. GAAP net income is forecast at $494-$514 million, while earnings are expected between $17.25 and $17.95 per share. The Zacks Consensus Estimate expects earnings to be $17.51 per share. The guidance assumes a 19%-19.5% tax rate, $21.1 million of interest income and no additional share repurchases after June 30. In the past month, investors have witnessed a upward trend in fresh estimates. The consensus estimate has shifted 5.61% due to these changes. Currently, Medpace has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Medpace has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Medpace belongs to the Zacks Medical Services industry. Another stock from the same industry, Elevance Health (ELV), has gained 4.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Elevance Health reported revenues of $49.83 billion in the last reported quarter, representing a year-over-year change of +0.8%. EPS of $7.45 for the same period compares with $8.84 a year ago. Elevance Health is expected to post earnings of $4.82 per share for the current quarter, representing a year-over-year change of -20.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.5%. Elevance Health has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Humana Inc.’s HUM Star Ratings recovery is emerging as a key catalyst for its Medicare Advantage (MA) turnaround. After facing a significant Stars-related headwind, the company is targeting a return to top-quartile performance by bonus year 2028. This recovery is important to the broader goal of achieving a sustainable pretax margin of at least 3% by 2028. Early execution signals are encouraging. The rate of improvement across 11 of 12 selected HEDIS and patient-safety measures outpaced historical trends. This suggests that investments in clinical quality and member engagement are gaining traction. Still, we should view this as positive momentum rather than a completed turnaround. The potential financial benefit is meaningful. The company defines top-quartile performance as Stars revenue per member per month 10% above the peer median. A successful recovery could improve the economics of its MA plans and complement other margin initiatives, including better plan selection and operating efficiencies. The October Centers for Medicare & Medicaid Services (“CMS”) Stars release will be the key near-term test. A meaningful rebound would validate its quality improvement efforts and provide greater confidence in its earnings trajectory. More importantly, it could strengthen the case that Humana is on a credible path toward its 2028 margin target, giving investors a stronger reason to remain optimistic about the turnaround. Peers like UnitedHealth Group Incorporated UNH and Elevance Health, Inc. ELV are also focused on strengthening Medicare Advantage quality and profitability. UnitedHealth Group maintains a strong quality profile, with roughly 75-78% of members in 4+ Star plans. This sustained performance secures Quality Bonus Payments and preserves rebate dollars, giving UNH greater flexibility to fund competitive supplemental benefits while protecting underwriting margins. Elevance Health operates with a broader commercial and Medicaid presence while working to strengthen its Medicare Advantage Stars profile through focused clinical outcomes and member engagement. Improving these quality scores could support ELV with better MA economics over time. Shares of HUM have gained 47.6% year to date, outperforming the broader industry’s 20.2% growth. Image Source: Zacks Investment Research From a valuation standpoint, HUM trades at a forward price-to-earnings ratio of 29.24X, up from the industry average of 15.98X. Humana carries a Value Score of B. Image Source: Zacks Investment Research The Zacks Consensus Estimate for HUM’s 2026 earnings implies a 47% deterioration year over year, followed by a 66.7% improvement next year. Image Source: Zacks Investment Research HUM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Humana Inc. (HUM) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CVS Health CVS reported its second-quarter 2026 results on Aug. 5. Revenues reached $106 billion, while adjusted operating income came in at approximately $5.2 billion, up more than 7% and 35%, respectively, from the prior-year quarter. The company saw growth across both the top and bottom lines in all of its operating segments. Adjusted earnings per share (EPS) improved significantly, increasing 40% year over year to $2.58. CVS ended the quarter with approximately $2.7 billion of cash at the parent and unrestricted subsidiaries and a leverage ratio of roughly 3.5. Cumulative operating cash flow reached nearly $10.6 billion in the first half, reflecting strong earnings year to date and the impact of working capital improvements. Following the solid six-month performance, management raised its outlook for the full-year 2026 adjusted EPS and cash flow from operations. The quarterly results, however, did not translate into a stronger stock performance. CVS shares ended the session 5.1% lower than the previous day’s close. Over the past 12 months, the stock has climbed 32.4% compared with the industry’s 9.6% growth, the Medical sector’s 10.2% increase and the S&P 500 composite’s 23.7% gain. The stock has also fared better than peers UnitedHealth Group UNH and Elevance Health ELV, which have risen 29.8% and 25.1%, respectively, over the same period. Image Source: Zacks Investment Research The Health Care Benefits revenues increased 3.5%, driven by strength in the Government business. This growth was partially offset by the company’s strategic exit from the individual exchange business this year, which brought total medical membership down by roughly 700,000 members compared to the prior-year period. CVS is seeing significant momentum in Aetna's margin recovery, with year-to-date adjusted operating income expanding by more than $2 billion, reflecting the cumulative impact of the actions taken over the past two years. Medical benefit ratio was 87.4% compared to 89.9% in the prior year, with the impact of changes in our individual exchange risk adjustment position associated with the 2025 plan year as well as the impact of favorable prior-year development contributing roughly 140 basis points (bps). In Health Services, the top line grew 11.5% year over year, led by pharmacy drug mix and brand inflation. However, continued pharmacy client price improvements remained a drag on growth. Adjusted operating income growth of 10% was primarily driven by improved purchasing economics and pharmacy drug mix and modest improvement in the health care delivery business, which rose 23%. Pharmacy and Consumer Wellness revenues increased slightly in the quarter, driven by pharmacy drug mix, higher prescription volume, including contributions from the Rite Aid asset acquisitions, and brand inflation. Adjusted operating income grew 10%, primarily due to core pharmacy strength and incremental contributions from the Rite Aid transaction. CVS Health raised its full-year 2026 outlook across key financial metrics. The company now expects revenues of at least $414 billion, up from its previous forecast of at least $405 billion. Enterprise adjusted operating income is projected at $16.58 billion to $16.92 billion compared with the prior range of $15.53-$15.87 billion. Within this outlook, Health Care Benefits adjusted operating income is now expected to reach $5.03 billion to $5.37 billion, more than $1 billion above the previous guidance. Adjusted EPS is now expected in the range of $7.90-$8.10 compared with the prior range of $7.30-$7.50. The Zacks Consensus Estimate calls for the company’s EPS to increase 17.3% to $7.92 in 2026, followed by another 7% increase to $8.48 in 2027. The estimates have moved higher consistently over the past three months. Image Source: Zacks Investment Research CVS trades at a forward, five-year Price/Sales (P/S) of 0.28X, slightly above its historical median of 0.26X but well below the 0.52X industry average. It has a Value Score of A. Image Source: Zacks Investment Research By comparison, peers UnitedHealth Group and Elevance Health command higher valuations, trading at a P/S of 0.80X and 0.44X, respectively. In the second quarter, CVS Caremark’s 340B business faced some pressure. Restrictions imposed by pharma manufacturers on covered entities and some large specialty drugs turning generic weighed on the program. Though the impact was offset by strength in other parts of Caremark, management expects these pressures to persist and pose a headwind in 2027. Caremark’s membership decline remains another challenge next year. The fall is expected to result from CVS’ transition to the lowest-net-cost pricing model and taking a more deliberate approach to client renewals and the selling season. Product actions and market exit by some of the company’s health plan customers will also likely play a role. Medical cost utilization remains a key risk to Aetna’s recovery despite the improvement seen in the first half of 2026. Macroeconomic factors, including inflation, tariffs, interest rates, unemployment and supply-chain disruption, can affect costs, consumer behavior and cash flow across the enterprise. CVS Health’s latest results show strength across key parts of the business and continued progress in Aetna’s margin recovery. Pharmacy & Consumer Wellness maintained solid momentum, while Health Services benefited from drug mix and brand inflation. Health Care Benefits also gained from strength in the Government business. The raised full-year guidance adds to the positive outlook. At the same time, Caremark’s 340B pressures and expected membership declines remain notable near-term hurdles, while higher medical cost utilization could slow Aetna’s margin recovery. The stock has outperformed its industry, sector and peers over the past 12 months. Valuation also remains attractive, with CVS trading at a lower sales multiple than its industry and peers. Given these factors, existing shareholders may want to retain their position. Prospective investors, however, should wait for a more favorable entry point. CVS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CVS Health Corporation (CVS) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Elevance Health (ELV). Shares have added about 6.8% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Elevance Health due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Elevance Health, Inc. before we dive into how investors and analysts have reacted as of late. ELV Beats Q2 Earnings Estimates on Higher CarelonRx Product RevenuesElevance Health reported second-quarter 2026 adjusted earnings per share (EPS) of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. The top line beat the consensus mark by 2.9%.The quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The upside was partly offset by a decline in overall medical membership and an elevated expense level. As of June 30, 2026, Medical membership of Elevance Health was around 44.9 million, which dipped 1.5% year over year. The decrease was due to the expected loss of some commercial fee-based customers and a decline in Individual ACA and Medicaid membership. The reported figure beat the Zacks Consensus Estimate of 44.8 million and our estimate of 44.5 million. Premiums totaled $41.3 billion in the quarter under review, which remained flat year over year and surpassed our estimate of $39.3 billion. Product revenues grew 3.7% year over year to $6.3 billion, marginally missing the Zacks Consensus Estimate by 0.9% and our estimate by 0.5%.Net investment income rose 44.9% year over year to $704 million. The Adjusted operating margin of 3.6% deteriorated 140 basis points (bps) year over year.Total expenses escalated 2.2% year over year to $48.5 billion in the second quarter, higher than our estimate of $46.7 billion. The year-over-year increase was due to higher cost of products sold, operating expenses and interest expenses.The operating expense ratio was 11.1%, which increased 100 bps year over year. The benefit expense ratio increased 80 bps year over year to 89.7%. The unit recorded operating revenues of $42.7 billion in the second quarter, which rose 2.7% year over year and beat the Zacks Consensus Estimate of $41.2 billion as well as our estimate of $40.7 billion. The segment benefited from increased premium yields. The unit recorded an operating gain of $0.9 billion, which fell 43.8% year over year. It also missed the consensus mark of $1 billion. The operating margin deteriorated 170 basis points year over year to 2.1%. The segment’s operating revenues rose 6.1% year over year to $19.2 billion in the quarter under review, beating the Zacks Consensus Estimate of $18.4 billion and our estimate of $18.3 billion. The year-over-year increase was driven by higher CarelonRx product revenues and the scaling of risk-based capabilities in Carelon Services.The unit’s operating gain of $0.9 billion was up 1% year over year, reflecting better profitability in specialty pharmacy. The operating margin deteriorated 30 bps year over year to 4.9%. Operating revenues amounted to $6 million. The unit incurred an operating loss of $81 million, wider than the prior-year quarter’s loss of $71 million. Elevance Health exited the second quarter with cash and cash equivalents of $10.2 billion, which advanced 7.8% from the 2025-end level. Total assets of $126.4 billion increased 4.1% from the figure as of 2025-end. Long-term debt, less the current portion, amounted to $30.7 billion and fell 0.4% from the figure as of Dec. 31, 2025. There were no short-term borrowings at the end of the second quarter, while the current portion of the long-term debt amounted to $375 million. Total equity of $45 billion was up 2.3% from the 2025-end level.Elevance Health generated net cash flow from operations of $6.2 billion at the end of the second quarter of 2026. The figure rose from the prior-year figure of $3.1 billion. Elevance Health bought back shares worth $0.7 million in the second quarter. It had a leftover capacity of around $5.3 billion under its share buyback authorization as of June 30, 2026. Elevance Health paid a quarterly dividend of $1.72 per share, adding up to a cash distribution worth $373 million. The company now expects adjusted EPS to be at least $27.00, up from the previous guidance of at least $26.75. The operating margin for the Health Benefits segment was earlier estimated to witness a decrease of 50-25 bps from the 2025 reported figure. Also, the operating margin for CarelonRx was expected to see a 25-0 bps decline, while the same for Carelon Services was estimated to witness an increase of 0-25 bps.Management had earlier projected operating revenues to witness a low-single-digit decline in 2026 from the 2025 level. Premium revenues were estimated to witness a mid-single-digit decline from the 2025 level. Medical enrollment was forecasted to be between 43.2 million and 43.9 million in 2026.Net investment income was expected to be $1.9 billion. Interest expenses were forecasted to be $1.5 billion in 2026, while operating cash flow guidance raised to at least $6.0 billion. Diluted shares are estimated to be 219-220 million. In the past month, investors have witnessed a downward trend in estimates review. At this time, Elevance Health has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Elevance Health has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

UnitedHealth Group Incorporated’s UNH second-quarter results show that its earnings performance is improving. The medical care ratio (MCR) fell to 86.7% from 89.4% a year ago, meaning the company spent less of its premium revenues on medical care and retained more for profits. This helped operating earnings rise 55%. UNH also raised its 2026 adjusted EPS guidance, reflecting confidence in its earnings recovery. The trend is encouraging, particularly in Medicare. Medical costs are running below UNH’s original expectations, aided by better benefit planning, care management and changes in provider networks. OptumHealth is also making progress as it focuses more on value-based care and controls unnecessary medical spending. These trends suggest that the company’s cost-control efforts are beginning to show results. Still, the 86.7% MCR may not fully reflect UNH’s underlying medical-cost trend. The quarter included $860 million of favorable prior-period medical development. At the same time, commercial medical costs are increasing at a rate exceeding 11%, caused by higher provider billing and coding intensity and specialty drug costs. This could keep pressure on commercial margins for longer. UNH’s earnings rebound looks encouraging, but its durability remains the key issue. The company’s 2027 pricing and benefit decisions will be an important test. If the company can maintain pricing growth in line with rising medical costs, margin expansion could drive further earnings growth. Otherwise, sustained medical-cost pressure may constrain future earnings growth. UnitedHealth isn't alone; peers from the Medical space, including Elevance Health, Inc. ELV and CVS Health Corporation CVS, are also navigating changing medical cost trends. Elevance Health’s second-quarter benefit expense ratio was 89.7%, up 80 basis points year over year, mainly due to higher medical costs in its government businesses. Still, ELV raised its 2026 adjusted EPS guidance to at least $27. This shows Elevance is using pricing and cost controls to protect margins. CVS Health is showing encouraging cost-control trends. Its Aetna business benefited from lower medical costs in the second quarter, helping the company deliver strong earnings beat and raise its 2026 adjusted EPS guidance to $7.90-$8.10. However, CVS faces uncertainty heading into 2027 due to ongoing PBM and 340B-related pressures. Shares of UnitedHealth have risen 47.9% in the past 12 months compared with the industry’s 41% growth. Image Source: Zacks Investment Research From a valuation standpoint, UNH trades at a forward price-to-earnings ratio of 18.83X compared with the industry average of 16.48X. UNH carries a Value Scoreof B. Image Source: Zacks Investment Research The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.69 per share, implying a 20.4% increase from the year-ago period’s level. Image Source: Zacks Investment Research UNH currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Encompass Health Corporation EHC reported second-quarter adjusted earnings per share (EPS) of $1.55, which beat the Zacks Consensus Estimate by 4.7%. The bottom line increased 10.7% year over year. Net operating revenues of $1.6 billion improved 9.6% year over year. The top line marginally beat the consensus mark by 1.5%. The robust results were primarily driven by strong growth in net patient revenue per discharge, supported by solid discharge volumes and contributions from capacity expansion. However, the upside was partly offset by elevated operating expenses, particularly higher salaries, benefits, and general and administrative costs. Encompass Health Corporation price-consensus-eps-surprise-chart | Encompass Health Corporation Quote EHC’s net patient revenue per discharge rose 3.9% year over year and beat the Zacks Consensus Estimate by 2.1%. Total discharges grew 5.6% year over year to 68,895, but missed the consensus estimate by 0.2%. Total operating expenses of $1.3 billion escalated 9.2% year over year due to elevated salaries, benefits, other operating and general & administrative expenses. The figure marginally missed our estimate by 0.9%. Net income climbed 12.2% year over year to $207.4 million in the second quarter. Adjusted EBITDA of $348 million grew 9.2% year over year and surpassed our estimate of $330.2 million. In the first half, Encompass Health opened three new hospitals with beds totaling 139 and added 54 beds across its existing hospitals. Encompass Health exited the second quarter with cash and cash equivalents of $107.7 million, which rose 49.2% from the 2025-end level. Total assets of $7.5 billion increased 5.2% from the 2025-end level. Long-term debt, net of the current portion, amounted to $2.6 billion, which increased 6.2% from that recorded as of Dec. 31, 2025. The current portion of long-term debt totaled $35.9 million. Total shareholders’ equity of $3.4 billion improved 5.8% from the 2025-end figure. EHC generated $595.7 million of net cash from operations in the first half, which improved 6.6% from the prior-year figure. Adjusted free cash flow decreased 9.2% to $370.8 million for the period. Encompass Health bought back 0.7 million shares worth $74.2 million in the second quarter of 2026. As of June 30, 2026, the company had a leftover capacity of around $188 million under its buyback authorization. On July 23, 2026, Encompass Health increased the aggregate common stock repurchase authorization to $1 billion. Management paid out a quarterly cash dividend of 19 cents per share. Net operating revenues are now expected to be between $6.41 billion and $6.49 billion, up from the earlier projection of $6.375-$6.475 billion. This reflected growth over the 2025 reported figure of $5.94 billion. Adjusted EBITDA is now expected to range between $1.365 billion and $1.395 billion, up from $1.27 billion in 2025. The prior guidance was $1.35-$1.38 billion for the metric. Adjusted EPS from continuing operations is projected to be between $6.02 and $6.25, reflecting an increase from $5.45 in 2025. The earlier guidance for the metric was $5.89-$6.11. Adjusted free cash flow is presently forecasted to be in the range of $760-$865 million. Maintenance CAPEX is expected to remain in the range of $225-$240 million. The company still expects to open eight de novo hospitals, adding a total of 389 beds. It plans to add 150 to 200 beds to its existing hospitals. Over the 2023-2027 period, management still aims to inaugurate six to 10 de novos each year, as well as make bed additions in the range of 80-120 every year. It also expects a CAGR of 6-8% in discharges in the same time frame. It also expects to open freestanding hospitals, including remote and satellite locations, with more than 30 beds beginning in 2026. EHC currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are some stocks from the broader Medical space that have also reported their quarterly results: Tenet Healthcare Corporation THC, Elevance Health, Inc. ELV and Pediatrix Medical Group, Inc. MD. Here's how they have performed: Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year. THC’s net operating revenues advanced 6.8% year over year to $5.63 billion. The quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions. Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. ELV’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses. Pediatrix Medical reported second-quarter 2026 adjusted earnings per share of 63 cents, which beat the Zacks Consensus Estimate by 10.5%. The bottom line increased 18.9% year over year. Net revenues increased 4.1% year over year to $487.8 million. MD’s strong performance was driven by improved cash collection activity and a favorable payor mix, along with contributions from recent acquisitions. However, these gains were partly offset by lower patient volumes and higher operating costs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Encompass Health Corporation (EHC) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Pediatrix Medical Group, Inc. (MD) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Pediatrix Medical Group, Inc. MD reported second-quarter 2026 adjusted earnings per share (EPS) of 63 cents, which beat the Zacks Consensus Estimate by 10.5%. The bottom line increased 18.9% year over year. Net revenues increased 4.1% year over year to $487.8 million. The top line surpassed the Zacks Consensus Estimate by 2.2%. The strong performance was driven by improved cash collection activity and a favorable payor mix, along with contributions from recent acquisitions. However, these gains were partly offset by lower patient volumes and higher operating costs. Pediatrix Medical Group, Inc. price-consensus-eps-surprise-chart | Pediatrix Medical Group, Inc. Quote Same-unit revenues increased 1.9% year over year, which beat our growth estimate of 0.4%. Same-unit revenues from patient service volumes declined 2.1% year over year. Same-unit revenues from net reimbursement-related factors grew 4% year over year. This growth was supported by higher cash collections, increased patient acuity and a slightly better payor mix. This metric exceeded our model estimate of 2.6%. Total operating expenses were $430.9 million, up 5.4% year over year. The figure was higher than our estimate of $415.8 million. The year-over-year increase was primarily due to higher practice salaries and benefits costs, and general and administrative expenses. Practice salaries and benefits totaled $336.1 million, up 3.9% year over year, mainly due to higher same-unit clinical salaries and malpractice expenses. Interest expense decreased 10.5% year over year to $8.2 million. The figure was below our estimate of $8.7 million due to lower interest rates and borrowings. Adjusted EBITDA rose 4.4% year over year to $76.4 million, driven by favorable contributions from recent acquisitions. Pediatrix Medical exited the second quarter of 2026 with cash and cash equivalents of $288.9 million, down from $375.2 million as of Dec. 31, 2025. There were no outstanding borrowings on its revolving credit facility at the end of the quarter. Total assets of $2.1 billion decreased from $2.2 billion at the end of 2025. Total debt, including finance leases, net was $584.2 million, which fell from $597.3 million at the end of 2025. Total shareholders’ equity of $881 million improved from $865.9 million at the end of 2025. MD generated net cash from operations of $126.3 million in the second quarter of 2026 compared with $138.1 million in the prior-year comparable period. During the first half of 2026, the company repurchased 2.8 million shares for $61.7 million. As of June 30, 2026, $104.5 million was available under the buyback program. Management has reaffirmed its guidance for adjusted EBITDA at $280-$300 million for 2026. Net income is now estimated to be between $147.6 million and $162.1 million for 2026. Interest expenses are currently forecasted to be $33.1 million. Income tax expenses are expected to be in the range of $54.5-$60 million. Depreciation and amortization expenses are now estimated to be $24.4 million. Transformational and restructuring-related expenses are anticipated to be $20.4 million. MD currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are some stocks from the broader Medical space that have also reported their quarterly results: Tenet Healthcare Corporation THC, Elevance Health, Inc. ELV and UnitedHealth Group Incorporated UNH. Here's how they have performed: Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year. THC’s net operating revenues advanced 6.8% year over year to $5.63 billion. The quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions. Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. ELV’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses. UnitedHealth Group reported second-quarter 2026 adjusted earnings per share of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion. UNH’s strong quarterly results were aided by growth in commercial fee-based membership and the strength in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weaker performance at Optum Health and Optum Rx, along with declining risk-based membership, partially offset these gains. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pediatrix Medical Group, Inc. (MD) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CVS Health CVS is scheduled to report second-quarter 2026 results on Aug. 5, before the market opens. The Zacks Consensus Estimate for second-quarter earnings per share (EPS) suggests a 3.3% increase year over year to $1.87. The estimate has moved up 1 cent in the past 30 days. The Zacks Consensus Estimate for second-quarter revenues currently stands at $98.31 billion, calling for a 3% jump year over year. Image Source: Zacks Investment Research The diversified healthcare company has a solid earnings surprise history. Its bottom-line surpassed estimates in each of the trailing four quarters, the average beat being 16.8%. Image Source: Zacks Investment Research Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is exactly the case here. Earnings ESP: CVS Health has an Earnings ESP of +1.42%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks Rank #1 stocks here. The Health Care Benefits segment’s second-quarter performance is likely to have sustained momentum in the Government business. However, this may have been partially offset by CVS Health’s exit from the Individual Exchange business in 2026. Growth in commercial fee-based membership has likely helped reduce the impact of the decline in total medical membership resulting from this exit. The segment’s operating performance may have benefited from the continued execution of Aetna's margin recovery initiatives. In May, Aetna launched the second-generation Aetna Claims Assist Manager, an AI-powered agentic claims advisor platform designed to streamline claims processing and improve payment accuracy. It is part of CVS Health’s $20 billion multi-year digital investment focused on simplifying the U.S. healthcare system and improving the consumer experience. The first-quarter Medical Benefit Ratio exceeded expectations, supported by favorable prior-year development and disciplined medical cost management. These factors are likely to have continued to support the metric in the second quarter. The Zacks Consensus Estimate for the Health Care Benefits segment's revenues indicates a 1.6% year-over-year decrease. In the Health Services segment, the performance is expected to have been supported by a favorable pharmacy drug mix and brand drug inflation. These gains, however, may have been partially offset by continued pharmacy client price improvements. CVS Health is also likely to have continued to execute on its operational plans in the Health Care Delivery business to improve health care access across the country. Second-quarter revenue growth is expected to have been led by Oak Street Health. CVS Caremark pharmacy benefit manager ("PBM") continues to strengthen its value proposition by driving meaningful savings and the lowest net cost for its clients and members. During the quarter, Caremark announced a comprehensive approach to GLP-1 support across more than 9,000 CVS Pharmacy locations and MinuteClinic, with virtual access available in nearly all states. New offerings include expanded pharmacy support to help patients access and stay on these treatments, along with a new $49 MinuteClinic virtual visit for eligible adults seeking GLP-1 therapy. Effective June 1, 2026, Caremark has removed the new-to-market block on Foundayo (orforglipron), a new oral GLP-1 therapy from Eli Lilly and Company, where approved for coverage by plans. The Zacks Consensus Estimate projects a 3.9% year-over-year increase in Health Services revenues. Lastly, the Pharmacy & Consumer Wellness segment may have made a strong contribution to the quarter’s revenues, driven by pharmacy drug mix and brand inflation.Higher prescription volumes, including contributions from CVS Health’s Rite Aid asset acquisitions, are also expected to have supported growth. However, similar to the prior quarter, the gains may have been largely offset by the impact of regulatory-related price reductions on select drugs, recent generic drug introductions and pharmacy reimbursement pressure. The Zacks Consensus Estimate expects Pharmacy & Consumer Wellness revenues to stay flat year over year. Year to date, CVS shares have rallied 31.6%, significantly outpacing the industry’s modest 0.1% growth and the 0.9% decline of the Zacks Medical sector. The stock has also performed better than its peers, UnitedHealth Group UNH and Elevance Health ELV, over the same period. Image Source: Zacks Investment Research CVS is trading at a forward 12-month Price/Sales (P/S) of 0.32X, lower than the industry average of 0.52X. The stock sits with a Value Score of A at present. Image Source: Zacks Investment Research Meanwhile, UnitedHealth Group and Elevance Health currently have a P/S of 0.83X and 0.41X, respectively. CVS has maintained solid momentum in 2026. One of the company's top priorities is to return Aetna to its target margins and regain its leadership position. Aetna now has the fewest medical services subject to prior authorization in the industry, with more than 95% of eligible prior authorizations completed within 24 hours and more than 80% approved in real time. In the Centers for Medicare & Medicaid Services' 2026 Star Ratings, Aetna ranked among the top national payers with more than 81% of its Medicare Advantage members in plans rated 4 stars or higher.  More than 63% were enrolled in 4.5-star plans. At the same time, CVS is rolling out innovations that simplify the pharmacy experience, accelerate biosimilar adoption and improve cost predictability. Effective July 1, 2026, it replaced the brand Stelara with lower-cost biosimilars across its commercial template formularies. Management expects to use the same playbook that drove the successful Humira transition, converting more than 90% of eligible patients. The goal is to achieve similar conversion rates and zero out-of-pocket costs for most customers. Technology also remains another strategic focus. Later this year, CVS plans to launch Health100, an AI-native, technology and service platform that allows any payer, PBM, pharmacy or provider to seamlessly connect. The Health100app is designed to give consumers a fully integrated health care experience, regardless of the banner on their pharmacy or the brand of their benefit card. CVS Health’s upcoming second-quarter 2026 results are expected to reflect continued progress at Aetna, alongside favorable contributions from Health Services and Pharmacy & Consumer Wellness segments. Improved profitability in Health Care Benefits is also expected to have supported the company's bottom-line performance. So far this year, CVS has stood out by outpacing its industry, broader sector and close peers. The company also looks poised to build on its solid earnings surprise track record. Supported by its cheaper valuation, the stock appears to be a worthwhile investment option for now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CVS Health Corporation (CVS) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The Ensign Group, Inc. ENSG reported a second-quarter 2026 adjusted EPS of $1.92, which beat the Zacks Consensus Estimate by 6.7%. The bottom line improved 20.8% year over year. Operating revenues advanced 17.3% year over year to $1.4 billion. The top line beat the consensus mark by 0.6%. ENSG’s strong results were driven by higher occupancy, improved patient days and contributions from acquired and transitioning facilities, along with growth in rental income. The positives were partly offset by higher expenses. The Ensign Group, Inc. price-consensus-eps-surprise-chart | The Ensign Group, Inc. Quote Ensign Group’s adjusted net income of $114.3 million rose 22.5% year over year. Same-facilities occupancy improved 220 basis points (bps) to 84.1%, while transitioning-facilities occupancy increased 190 bps year over year to 84.7%. Total expenses escalated 17.3% year over year to $1.3 billion due to higher cost of services, rent and G&A costs and came in higher than our estimate by 0.6%. Skilled Services: The segment’s revenues totaled $1.4 billion, which grew 17.6% year over year but missed our estimate by 1.2%. The metric benefited from higher occupancy rates and improved patient days. Segment income of $179.6 million advanced 19.7% year over year. Skilled nursing facilities and campus operations were 348 and 32, respectively. Standard Bearer: Rental revenues climbed 40.2% year over year to $44.1 million in the quarter. The metric benefited from real estate purchases and increased annual rent. Segment income of $12.1 million advanced 32.3% year over year. Funds from operations amounted to $24.7 million, which increased 34.6% year over year. Ensign Group exited the second quarter with cash and cash equivalents of $262.3 million, which fell from the 2025-end figure of $503.9 million. It had $591.6 million of available capacity under its line of credit. Total assets of $5.7 billion increased from $5.5 billion at the end of 2025. Long-term debt — less current maturities — totaled $135.6 million, down from $137.5 million as of Dec. 31, 2025. Current maturities of long-term debt amounted to $4.2 million. Total equity of $2.4 billion advanced from the 2025-end figure of $2.2 billion. ENSG generated net cash from operations of $272.1 million in the first half of 2026, which grew from the prior-year figure of $228 million. ENSG bought back shares worth $40 million in the second quarter of 2026. As of June 30, 2026, $60 million remained available under the company’s stock repurchase program. The company also paid a quarterly cash dividend of 6.5 cents per share of Ensign common stock. ENSG has raised its full-year 2026 outlook. Revenues are now expected to range between $5.87 billion and $5.92 billion compared with the prior guidance of $5.81-$5.86 billion. Adjusted EPS is projected to be in the band of $7.75-$7.85 per share, up from the earlier estimate of $7.48-$7.62. The weighted average common shares outstanding is currently estimated to be around 59.5 million and the tax rate is anticipated to be 25%. ENSG currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are some stocks from the broader Medical space that have also reported their quarterly results: Tenet Healthcare Corporation THC, Elevance Health, Inc. ELV and UnitedHealth Group Incorporated UNH. Here's how they have performed: Tenet Healthcare reported second-quarter 2026 adjusted earnings per share of $6.12, which surpassed the Zacks Consensus Estimate by 50%. The bottom line increased 52.2% year over year. THC’s net operating revenues advanced 6.8% year over year to $5.63 billion. The quarterly results were driven by strong same-facility revenue growth, higher patient acuity, disciplined expense management and higher Medicaid supplemental revenues. However, the gains were partly offset by an unfavorable payer mix due to lower exchange admissions. Elevance Health reported second-quarter 2026 adjusted earnings per share of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year. Operating revenues advanced 0.8% year over year to $49.8 billion. ELV’s quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The gains were partly offset by a decline in overall medical membership and higher operating expenses. UnitedHealth Group reported second-quarter 2026 adjusted earnings per share of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Revenues rose 0.4% year over year to $112 billion. UNH’s strong quarterly results were aided by growth in commercial fee-based membership and the strength in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weaker performance at Optum Health and Optum Rx, along with declining risk-based membership, partially offset these gains. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research