HUM

Humana just posted its Q3 2026 scorecard and the headline is simple. Profit swung back to a solid quarter with basic earnings per share of 2.59 SEK on revenue of 2,595 million SEK. The share price, sitting at SEK70.40 into the release with a 7‑day return effectively flat, reflected a market still unsure about the story. The real tension is psychological. Traders are reacting to a healthcare operator that now earns a trailing P/E of 18.8x while carrying a thin 1.8% net margin and a history of declining earnings. Short term emotion is colliding with a longer record of squeezed profitability. Like the Humana story but uneasy about thin profitability at an 18.8x P/E? You can compare that setup with our screener of companies that pair stronger margins with resilient balance sheets in the list of solid balance sheet and fundamentals stocks (205 results). - Revenue (Q3 2026 vs Q3 2025): 2,595 million SEK vs 2,489 million SEK (up roughly 4%) - Net Income, Excl. Extra Items (Q3 2026 vs Q3 2025): 123 million SEK vs 120 million SEK (up about 3%) - Basic EPS (Q3 2026 vs Q3 2025): 2.59 SEK vs 2.42 SEK (rise of around 7%) - Trailing Net Profit Margin (last 12 months vs prior year): 1.8% vs 2.3% (compression of 0.5 percentage points) Tired of scrolling through dense tables and fragmented earnings headlines? See a complete visual financial overview of Humana, including its profitability trends and the context for its latest margin profile, in the company report for Humana. Supporters argue Humana is quietly rewiring its profit engine through capacity, mix and efficiency rather than headline growth. "Digitalization and AI investments, which are now starting to show up in lower costs and better efficiency in Swedish operations, have room to scale across the group and can support operating expense ratios and EBIT margin." The latest quarter offers early support for that claim. Revenue of 2,595 million SEK and basic EPS of 2.59 SEK both edge ahead of last year. Yet the trailing net margin sits at 1.8%, lower than the prior 2.3%, which shows the efficiency story is not yet lifting group profitability. One Narrative has put a figure on that disagreement. → See the Narrative with its lower Fair Value, assumptions and all. The cautious view rests on the idea that organic momentum in Humana is too soft to justify all the new capacity and spend. "Although centralized sales and marketing structures in Finland and Sweden are starting to support occupancy and pipeline building, the history of negative organic growth over the last 12 months and ongoing customer outflow in Personal Assistance mean that revenue growth and EBIT improvement could remain modest until these efforts are fully embedded." Q3 shows revenue and EPS slightly ahead of last year, yet the trailing net margin is thinner. That mix supports the concern. Headline earnings improved, but the margin squeeze and reference to negative organic growth suggest utilization and Personal Assistance churn remain unresolved pressure points rather than solved problems. Humana's mixed quarter highlights that reported profit and share price do not always align for investors. The real opportunity could sit in stocks that could be undervalued before the market closes the gap. - Company 1 - 42% below our estimate - expand higher-acuity hospitals and clinics while rolling out AI-supported operations to lift patient volumes and margins. - Company 2 - 38% below our estimate - turn a swelling turbine order backlog and fast-growing maintenance contracts into steadier cash flows from long-lived service deals. - Company 3 - 46% below our estimate - add sterile injectable manufacturing lines and scale specialty drug contracts that rely on in-house heparin capabilities. Three companies from the same screener. Open the full list of 195 companies trading below our fair value estimates → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HUM.ST. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Healthcare plan provider Centene Corporation CNC is set to report third-quarter 2026 results on Oct. 27, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter's earnings is currently pegged at 7 cents per share on revenues of $47.06 billion. The third-quarter earnings estimate remained stable over the past 60 days. However, the bottom-line projection indicates a year-over-year decline from 50 cents per share. The Zacks Consensus Estimate for quarterly revenues also suggests a year-over-year decline of 5.3%. Image Source: Zacks Investment Research For 2026, the Zacks Consensus Estimate for Centene's revenues is pegged at $196.29 billion, implying an increase of 0.8% year over year. Meanwhile, the consensus mark for 2026 EPS is pegged at $4.89, signaling growth of 135.1% year over year. Centene beat earnings estimates in each of the last four quarters, with the average surprise being 151.3%. This is depicted in the figure below. CNO Financial Group, Inc. price-eps-surprise | CNO Financial Group, Inc. Quote Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That's not the case here. CNC has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for the company's total commercial memberships indicates a 38.2% year-over-year decrease, primarily due to a decline in the commercial marketplace. The consensus estimate for the company's total Medicaid memberships indicates a 6.9% decline from a year ago. As such, the Zacks Consensus Estimate for total membership indicates an 8.8% year-over-year decline, which reflects its portfolio optimization efforts. However, the consensus mark for Medicare PDP memberships signals 10.6% growth from the year-ago quarter. The consensus estimate projects CNC's service revenue growth of 4% year over year. The consensus mark for the company's investment and other income indicates a 23.7% year-over-year decline from $450 million. Moreover, the projection for premium revenues indicates a 3.4% fall from the year-ago quarter's figure. These are likely to have affected the third-quarter top line. The Zacks Consensus Estimate for the Commercial health benefits ratio is pegged at 87.6%, down from 89.9% in the year-ago period, meaning a higher portion of premiums remain in hand after paying claims. Centene stock has gained 70.7% in the year-to-date period compared with the industry's growth of 29%. Its peers, such as Humana Inc. HUM and Molina Healthcare, Inc. MOH, have jumped 66.1% and 23.8%, respectively, during this time. Meanwhile, the S&P 500 has only increased 12.2%. Image Source: Zacks Investment Research CNC is trading at 13.37X forward 12-month earnings, above its five-year median of 11.33X. But it is still below the industry's average of 16.37X. In comparison, Humana and Molina Healthcare are currently trading at 28.97X and 24.15X, respectively. Image Source: Zacks Investment Research Centene presents a mixed investment picture, with improving Medicaid margins and Marketplace profitability offset by declining memberships and persistent cost pressures. The Medicaid business is benefiting from favorable rate adjustments and medical-cost management initiatives, supporting underwriting profitability. Meanwhile, effective repricing, moderating medical trends and improved risk-adjustment positioning are strengthening Marketplace margins. These developments could support earnings growth and reinforce the company's turnaround efforts. However, shrinking commercial and Medicaid memberships, rising operating expenses and regulatory uncertainties remain major concerns. Medical cost pressures and changing enrollment trends could also challenge sustained margin expansion. CNC's shares have outperformed the industry and broader market, reflecting investor optimism. Although the stock trades at a discount to the industry, its valuation remains elevated against historical levels, limiting near-term upside potential. Given improving fundamentals but lingering uncertainties, existing investors may retain their positions, while new investors could await a more attractive entry point. 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 Humana Inc. (HUM) : Free Stock Analysis Report Molina Healthcare, Inc (MOH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Interested in Healthcare Services Group, Inc.? Here are five stocks we like better. - Healthcare Services Group reported strong Q3 results, with revenue of $479.6 million and net income of $24.9 million, supported by new business, client retention and operational execution. Management expects Q4 revenue of $535 million to $545 million and raised its 2027 revenue-growth outlook to the low double digits. - The acquisition of NEXDINE Hospitality, completed October 6, is expected to add more than $150 million in annual revenue at comparable margins and be immediately accretive to earnings. The deal expands HCSG's senior living and hospitality presence. - Liquidity remained solid, with $204.3 million in cash and marketable securities plus an unused $300 million revolver. The company repurchased $11.7 million of stock during Q3, while also recording a $6.1 million Genesis restructuring-related bad-debt recovery. - Cigna Considers Humana Acquisition – What It Means for the Stocks Healthcare Services Group (NASDAQ:HCSG) reported third-quarter 2026 revenue of $479.6 million and net income of $24.9 million, or $0.36 per diluted share, as new client wins, retention and operational execution supported growth and margins. Chief Executive Officer Ted Wahl said the quarter marked the company's ninth sequential revenue increase in the past 10 quarters. He said the company's field-based teams helped produce service outcomes and consistent margins, while industry conditions are benefiting from demographic trends in senior care. → The AI Sell-Off Continues—These 3 Stocks Keep Raising Guidance Anyway - Is Cigna Group the Nation's Best-Run Health Insurance Company? "The organic growth inflection we planned for and are now delivering" supports fourth-quarter revenue of $535 million to $545 million, Wahl said. The company also raised its 2027 revenue-growth outlook to low double digits from a prior mid-single-digit outlook. Environmental Services revenue was $217.2 million in the third quarter, with a segment margin of 13.3%. Dietary Services revenue was $262.4 million, with a segment margin of 8.7%. → Tesla's Roadster Reveal Hints at 2 Much Bigger Moves Cost of services totaled $399.2 million, or 83.2% of revenue. Chief Communications Officer Matt McKee said the result benefited from service execution and lower bad-debt expense. The company's stated goal is to manage cost of services at about 86% of revenue. McKee said execution was supported by customer experience, adherence to operating systems and regulatory requirements, and budget discipline. He cautioned, however, that quarterly results can vary based on the timing of certain items. → Luxury's Middle Market Is Cracking—These 3 Stocks Could Win Chief Financial Officer Vikas Singh said the company recorded a $3.6 million bad-debt benefit during the quarter, driven by its assessment of the Genesis restructuring. Excluding the $6.1 million Genesis-related benefit, bad-debt expense would have been about $2.5 million, or less than 0.5% of revenue, which Singh said was lower than the company's recent results. Singh said management is not changing its 86% cost-of-services target yet, despite recent performance below that level. He cited potentially variable items such as bad debt and workers' compensation expense, noting that the company's three-year average cost of sales before 2026 was closer to 87%. Selling, general and administrative expense was $48.5 million. After adjusting for a $600,000 decrease in deferred compensation, SG&A was $49.1 million, or 10.2% of revenue. Healthcare Services Group's current target range is 9.5% to 10.5%, with a longer-term goal of 8.5% to 9.5%. Singh said roughly half of SG&A is fixed and half is variable, creating the potential for operating leverage as revenue grows. He also said investments in people, training, technology and acquisitions, as well as professional and legal fees, can pressure SG&A in individual periods. Healthcare Services Group completed its acquisition of NEXDINE Hospitality on Oct. 6. Wahl said the acquisition expands the company's presence in senior living and hospitality-focused markets and is expected to contribute more than $150 million of annual revenue at comparable margins. Management said the transaction is immediately accretive to earnings. Wahl described NEXDINE as a double-digit growth opportunity and said it complements the company's existing Healthcare Services, Campus Services Group and Meriwether Godsey businesses. He said the combined organization expects to share ideas, client relationships, vendor partnerships and best practices while allowing NEXDINE to retain its brand identity and people culture. Singh said NEXDINE's contracts include provisions enabling the business to pass along price increases, similar to Healthcare Services Group's updated contractual framework. While the company has an integration plan spanning corporate functions and departments, Singh said management does not expect to provide external integration milestones because NEXDINE represents less than 10% of company revenue. Internal integration milestones are expected to be completed by year-end. Management did not provide figures for contingent consideration or intangible amortization from the acquisition, saying those assessments were still underway. Singh noted that the company used more than $90 million of cash for the transaction, reducing interest income on cash balances, but reiterated that the deal is expected to be accretive even after that impact. On Oct. 14, the Bankruptcy Court approved the sale of Genesis to 101 West State Street. Healthcare Services Group estimated a $6.1 million recovery of pre-petition claims. Singh said the recovery was reflected in the third-quarter income statement as an offset to bad-debt expense and benefited cost of sales and net income on a post-tax basis. The company said a higher recovery remains possible, but the outcome depends on unresolved variables, including claim allowances, total claims filed and assets available for distribution. Management said it does not expect a full recovery of its Genesis exposure and could not provide a timetable for final resolution. For 2027, Wahl said low-double-digit revenue growth will include a mid-single-digit organic growth target as well as NEXDINE's contribution. He said the organic outlook reflects current revenue momentum, a strong new-business pipeline, management capacity and client implementation timing. The company said it continues to retain more than 90% of its base business. Cash flow from operations was $30.2 million in the third quarter. After adjusting for a $9.5 million decrease in payroll accruals, operating cash flow was $20.7 million. At quarter-end, Healthcare Services Group held $204.3 million in cash and marketable securities and had an unused $300 million revolving credit facility. The company repurchased $11.7 million of common stock during the quarter, bringing year-to-date repurchases to $56.6 million. Healthcare Services Group had announced plans in February to target $75 million of repurchases over 12 months and had 7.7 million shares remaining under its authorization at the end of the quarter. Healthcare Services Group, Inc (NASDAQ:HCSG) provides outsourced support services to healthcare facilities in the United States. Its customers primarily include nursing homes, skilled nursing facilities, continuing care retirement communities, assisted-living facilities and other institutional healthcare providers. The company's principal service offerings include housekeeping, laundry and linen services, as well as dining and nutritional services. These services are designed to help healthcare operators manage nonclinical functions, maintain facility standards and support the daily needs of residents and patients. Healthcare Services Group was founded in 1976 and is headquartered in Bensalem, Pennsylvania. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What Healthcare Services Group (HCSG) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

- UNH surged 4% after beating Q3 EPS of $4.69 against a $4.15 estimate and raising its full-year outlook, while ELV gained just 2%. - XLV rose just 0.7% and SPY held flat, confirming UNH's gain as company-specific rather than a broader sector or market move. - A $610 million reserve release aided UNH's medical care ratio improvement, and Medicare Advantage membership fell 935,000 since year-end, clouding margin durability. - Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and UnitedHealth Group didn't make the cut. Enter your email to see the names that beat UNH. The report is free. Enter your email and see if any of your stocks made the cut. UnitedHealth Group (NYSE:UNH) shares are up 4% to $395.19 after the health insurer topped Q3 2026 profit estimates and raised its full-year outlook. The beat came on the metric that matters most in managed care, though a reserve release did part of the work. Meanwhile, Elevance Health (NYSE:ELV) shares are up 2% to $429.47 and Humana (NYSE:HUM) stock is trading 2% higher at $442.01; these gains obviously fall short of the move in UnitedHealth stock. Elevance Health runs a comparable insurance and health services combination at a smaller scale. The Health Care Select Sector SPDR ETF (NYSEARCA:XLV) is up 0.7% to $173.10, a far smaller advance than the gain in UnitedHealth stock. For a broad-market reading, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is flat at $777.76. UnitedHealth reported third-quarter adjusted earnings per share (EPS) of $4.69 before the opening bell, well ahead of the $4.15 consensus estimate. Management raised its full-year 2026 adjusted EPS outlook again, to at least $20.50, extending a string of upgrades this year. Chief executive Stephen Hemsley weighed in. He stated that the results reflect "the discipline and execution our teams are bringing to every part of our business." ------ Free Report, Just Released Why Didn't UNH Make The Top 10 List? 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now. And UNH didn't make the cut! The report is free, and you can see why we think each stock is a top investment today. Enter Your Email and See the Ten → ------ On the cost side, UnitedHealth's medical care ratio, the share of premiums paid out on claims, improved to 88.4% from 89.9% a year earlier. This included $610 million of net favorable prior period reserve development. That means money set aside in earlier periods for claims proved larger than needed. A reserve release lifts the quarter and may not repeat, which is what separates a durable result from a flattering one. UnitedHealth's Optum Health unit posted operating earnings of $735 million. The unit, part of its Optum health services and pharmacy arm, was up from $41 million a year earlier. The rebound followed UnitedHealth's exit from value-based care markets where it lacked sufficient scale. That decision also cut Optum Health revenue 10%. Trading revenue for profit in this way gives UnitedHealth a second source of earnings repair beyond insurance pricing. Elsewhere in Optum, Optum Insight earnings rose to $1.3 billion from $920 million on enhanced product offerings and operational improvements. Optum Rx earnings climbed to $1.7 billion from $1.5 billion, reflecting continued adoption of biosimilars. UnitedHealthcare, the insurance arm, sees its profitability turn on how much of each premium dollar goes back out in medical costs. Its medical membership slipped to 48.3 million from 50.1 million a year earlier. A decline in its Medicare Advantage and Medicaid enrollment pulled total revenue down 0.4% to $112.69 billion, though the figure still topped estimates. Humana and Elevance Health, fellow managed care insurers, offer a benchmark for how far UnitedHealth's report carries among peers. Elevance Health stock's smaller gain frames the move as company-specific strength with modest impact. What remains unclear is whether the medical care ratio holds its improvement once reserve benefits fade. UnitedHealth's Medicare Advantage enrollment has also contracted by 935,000 since year-end 2025, which could keep pressure on revenue even as margins recover. A raised outlook, the Optum Health rebound and $5 billion in share buybacks through September 30 support the bull case. The insurer's shrinking membership and a quarter helped by reserve releases keep the bear case alive. If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And UNH wasn't one of them. They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list -->> Contact [email protected] for any questions or corrections.

- Khouw's trade sells November $420 calls and $340 puts to help fund a January 2027 $400 call, lowering its cost by nearly 58%. - UnitedHealth is expected to post $112.4 billion in Q3 revenue, $6.45 billion in EBITDA and $3.06 in earnings per share. - Oppenheimer noted that UNH's share of members in four-star-or-higher plans fell 15%, while Humana's rose to 95% from 42%. UnitedHealth (UNH) is set to report third-quarter (Q3) earnings before Tuesday's market open, with options pricing in a 6.5% move around the results. Tidal Financial Group strategist Michael Khouw says elevated options prices create an opportunity for traders to sell November premium to help finance a cheaper January call. UNH stock rose 0.9% in after-hours trading on Monday after closing the regular session down 0.2% at $378.52. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox "The only thing more expensive than health insurance is perhaps the costs of insuring shares of health insurers," Khouw said, pointing to UnitedHealth as an example. Options imply a 6.5% move in UnitedHealth shares around earnings, while implied volatility is running at about 40%, about twice the stock's realized volatility of 20%, he said. The implied move is the second-largest in almost two years. Shares have fallen after five of their past eight earnings reports, including nearly 20% drops after results in January and April 2025, CNBC noted. Khouw's proposed trade is a "short premium" strategy: It sells two November options to collect $10.60 per share and offset part of the cost of a longer-dated call. Leg | Trade | Premium Per Share 1 | Buy January 2027 $400 Call | Pay $18.20 2 | Sell November $420 Call | Collect $5.80 3 | Sell November $340 Put | Collect $4.80 | Net Upfront Debit | $7.60 The trade buys a January 2027 $400 call for $18.20 per share, then sells a November $420 call for $5.80 and a November $340 put for $4.80. The resulting net cost is $7.60 per share, or $760 per contract, reducing the call's upfront cost by about 58%. If UnitedHealth finishes November between $340 and $420: The short options would expire worthless. The January call's breakeven would be $407.60 at expiration. If UNH stock falls below $340: The short put could require the seller to buy shares at that price, for an effective cost of about $347.60 per share after the trade's net debit. Khouw said UnitedHealth had been essentially flat over five years and traded 12% to 13% below the midpoint of its two-year high-low range. At about 17 times forward earnings, he said, the stock was not priced for a recovery. He sees the company's 13% to 16% earnings-growth target as achievable, though rising healthcare costs is a headwind. Khouw also pointed to enrollment trends. Affordable Care Act (ACA) marketplace enrollment appears poised to decline, he said, although the segment is smaller than Medicare and commercial coverage. Commercial fee-based enrollment grew about 2.9% from 2024 to 2025, while total Medicare enrollment rose 4.5%. Commercial growth exceeded U.S. workforce growth of about 1.4%. Koyfin's estimates for the upcoming quarter compare with the last reported quarter. They show revenue of $111.49 billion, down 0.5% sequentially. Earnings before interest, taxes, depreciation and amortization (EBITDA) is estimated at $6.47 billion, down 28%, while earnings before interest and taxes (EBIT) is forecast at $5.44 billion, down 32%. GAAP earnings per share (EPS) are projected to fall 36.81%. Fiscal.ai's year-over-year estimates show revenue of $112.4 billion, compared with $113.2 billion a year earlier. It forecasts EBITDA of $6.45 billion, up from $5.25 billion, and earnings per share of $3.06, compared with $2.92. TD Cowen lowered its price target on UNH to $402 from $430, implying a 6% upside, while maintaining a 'Buy' rating. The firm expects preliminary commentary on 2027 earnings-per-share expectations with the report. Meanwhile, Piper Sandler said 66.8% of UnitedHealth members were enrolled in plans rated four stars or higher, based on September 2026 enrollment data, and called the company's resilience "impressive" and underappreciated. Oppenheimer noted that the share of members in four-star-or-higher plans fell 15% at UnitedHealth for 2027, versus 10% at Elevance Health, 15% at CVS Health and 9% at Centene. Humana moved in the opposite direction, with 95% of its members in four-star-or-higher plans, up from 42% a year earlier. On Stocktwits, retail sentiment for UNH jumped to 'extremely bullish' from 'bullish' levels a day ago amid a 1,680% surge in 24-hour message volumes. One user said, "$UNH beat and raise. 500 incoming" Another user said, "$UNH be cool to beat huge and raise. Shorts have to chase to 435.00 plus this week." UNH stock has risen 17% year-to-date. For updates and corrections, email newsroom[at]stocktwits[dot]com. Read Next: 'The Trick Is To Get There': Michael Burry Sees 'Bull Trap' Risk But Holds Back On New Shorts Deepti Sri has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: - Ray Dalio Cautions US Treasury Selloff Is 'Far From Over' - TMC Stock Hits Fresh 52-Week Lows But CEO Says Selloff Isn't Fundamental: '...Negativity Can Feed On Itself' - Visa Stock Has Caught Wall Street's Attention – What's The China Angle?

UnitedHealth Group (UNH) came out with quarterly earnings of $4.69 per share, beating the Zacks Consensus Estimate of $4.12 per share. This compares to earnings of $2.92 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +13.84%. A quarter ago, it was expected that this largest U.S. health insurer would post earnings of $4.94 per share when it actually produced earnings of $6.38, delivering a surprise of +29.15%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. UnitedHealth, which belongs to the Zacks Medical - HMOs industry, posted revenues of $112.69 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.18%. This compares to year-ago revenues of $113.16 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. UnitedHealth shares have added about 14.7% since the beginning of the year versus the S&P 500's gain of 14.1%. While UnitedHealth has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for UnitedHealth was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.13 on $111.21 billion in revenues for the coming quarter and $19.85 on $446.78 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - HMOs is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Humana (HUM), is yet to report results for the quarter ended September 2026. The results are expected to be released on November 6. This health insurer is expected to post quarterly loss of $1.03 per share in its upcoming report, which represents a year-over-year change of -131.8%. The consensus EPS estimate for the quarter has been revised 2.7% lower over the last 30 days to the current level. Humana's revenues are expected to be $40.49 billion, up 24% from the year-ago quarter. 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 Humana Inc. (HUM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

On October 9, Humana Inc. (NYSE:HUM) gained more than 11% after analysts named it the biggest potential beneficiary of the new Medicare Advantage star ratings for 2027. Earlier this year, the stock also ranked 5th on our list of the 7 Best Turnaround Stocks to Buy in 2026. See which four stocks ranked higher than Humana Inc. and why. The health insurer said 95% of its Medicare Advantage members would be enrolled in plans rated four stars or higher in 2027, up from just 20% in 2026. The result also exceeded J.P. Morgan's expectations of 60% to 70%. Photo by Arturo Añez on Unsplash Higher ratings from the US health department can help insurers qualify for government bonus payments. This makes the improvement a potential boost to Humana's future revenue and profitability. Evercore ISI analyst Elizabeth Anderson noted that the improved ratings could help the company receive $4.8 billion in bonus payments in 2028. However, Baird analysts said that the improvement in profitability will depend on reinvestment in member benefits and arrangements with healthcare providers. Humana's improved ratings could also give it a competitive advantage over larger rivals. J.P. Morgan estimates that the share of UnitedHealth Group Incorporated's (NYSE:UNH) enrollments in plans rated four stars or higher will fall from 81% to about 67%, while CVS Health Corporation's (NYSE:CVS) share is expected to fall from from 84% to roughly 70%. The stronger ratings could help Humana attract and retain members as competitors face weaker results. Is HUM the best healthcare stock to buy right now? See how it compares with HealthStream (HSTM) and whether it is the better healthcare bet. The improvement marks a turnaround after the company's 2025 ratings declined sharply, putting its bonus payments at risk. Humana also lost a lawsuit challenging the calculation of its 2025 ratings in October last year and forecast 2026 profit below Wall Street expectations in February. Anderson attributed the latest improvement to better performance in measures related to drug-plan quality, health-plan quality, and readmissions. Some Risks Remain Despite the positive ratings news, Humana still faces headwinds in achieving sustainable growth in profitability. The company lowered its minimum 2026 GAAP EPS guidance from $8.36 to $6.52, while maintaining its adjusted EPS outlook of at least $9. Another concern is whether bonus payments will keep pace with rising healthcare costs. If government payments fall short of medical-cost inflation, the company could face further pressure on margins and may need to reduce benefits, raise premiums where possible, or withdraw from less-profitable markets. These risks could limit the financial gains from improved star ratings. What the Numbers Say Hedge fund interest in the stock increased during the second quarter. According to Insider Monkey's database, 74 hedge funds held HUM at the end of the second quarter, up from 61 in the first quarter. As of September 15, short interest stood at 2.69% of the company's float, indicating that bearish positioning in the stock remains low. Humana trades at a trailing price-to-earnings ratio of 35.42 and a forward P/E ratio of 24.33. Although the forward multiple is lower than the trailing multiple, the valuation still depends on the company delivering an earnings recovery. While the improved star ratings could support future bonus payments and strengthen Humana's competitive position, persistent medical-cost pressures or weaker-than-expected financial benefits could undermine that recovery. The stock's improved ratings strengthen its turnaround case, but whether its valuation is justified will depend on how much of the expected bonus revenue translates into sustainable earnings growth. While we acknowledge the potential of HUM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ ALSO: 10 Best US Stocks to Buy Under $50 and AMD's $8.2 Billion AI Bet Comes With a $1 Trillion Valuation Problem. Disclosure: None. Follow Insider Monkey on Google News.

LOUISVILLE, Ky., October 12, 2026--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM) will release its financial results for the third quarter 2026 (3Q26), as well as prepared management remarks (in PDF format), at 6:00 a.m. Eastern time on November 6, 2026. The company will host a live question-and-answer session at 8:00 a.m. Eastern time that morning to discuss its financial results for the quarter and earnings guidance for 2026. A webcast of the 3Q26 earnings call may be accessed via Humana's Investor Relations page at https://humana.gcs-web.com/. If you anticipate asking a question during the question-and-answer session, please register in advance using this link, https://register-conf.media-server.com/register/BIe96a47a3d2724a5baa1fa1210aa58a13. Upon registration, telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number and a unique registrant ID. The company suggests participants listening via the web or the conference call sign in or dial in at least 15 minutes in advance of the call. For those unable to participate in the live event, the virtual presentation archive will be available in the Historical Webcasts and Presentations section of the Investor Relations page at https://humana.gcs-web.com/, approximately two hours following the live webcast. The company's 3Q26 earnings news release is expected to include financial measures that are not in accordance with Generally Accepted Accounting Principles (GAAP). A reconciliation of non-GAAP financial measures to financial results under GAAP, as well as management's reasons for including non-GAAP financial measures, will be included in the company's 3Q26 earnings news release, a copy of which will be available on the Investor Relations page of www.humana.com on November 6, 2026. About Humana Humana (NYSE: HUM) is a leading U.S. healthcare company. Through our Humana insurance services and our CenterWell healthcare services, we make it easier for the millions of people we serve to achieve their best health – delivering the care and service they need, when they need it. These efforts are leading to a better quality of life for people with Medicare and Medicaid, families, individuals, military service personnel, and communities at large. Learn more about what we offer at Humana.com and at CenterWell.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20261012193938/en/ Contacts FOR MORE INFORMATION CONTACT: Lisa Stoner Humana Investor Relations (502) 580-2652 e-mail: [email protected] Mark Taylor Humana Corporate Communications (317) 753-0345 e-mail: [email protected]

VANCOUVER, BC, Oct. 12, 2026 /PRNewswire/ -- American News Group News Commentary - The S&P 500 set an all-time high on Tuesday, October 6, and finished the week at 7,811.54 after a Friday gain of 0.6%, with the Dow Jones Industrial Average closing at 51,654.95 and the Nasdaq Composite at 27,366.17. All three finished the week higher, even as the 10-year Treasury yield recently reached its highest level since 2002 and closed Friday at 5.24%. The most active names of the week moved on company news: a satellite spectrum deal that hit wireless carriers, a Medicare ratings update, an airline outlook cut and a consumer staples guidance change. Next week brings September inflation data and the first major third-quarter earnings reports. Active Companies from around the markets with current developments this week include: Humana Inc. (NYSE: HUM), Delta Air Lines, Inc. (NYSE: DAL), PepsiCo, Inc. (NASDAQ: PEP), UnitedHealth Group Incorporated (NYSE: UNH), Johnson & Johnson (NYSE: JNJ). The largest single move of the week came late Thursday, when SpaceX agreed to acquire a nationwide portfolio of 800 MHz low-band spectrum licenses from Grain Management, a deal that remains subject to Federal Communications Commission approval and that would support its Starlink Mobile service. On Friday, T-Mobile US fell 13.3%, AT&T fell 9.8% and Verizon fell 8.7%, while tower operators Crown Castle and American Tower rose 15.6% and 9.3%, respectively, according to the Associated Press. The backdrop remains demanding. The Federal Reserve raised its benchmark rate in September for the first time in more than three years, crude oil has traded above $90 per barrel, and the University of Michigan's preliminary October survey showed consumers expect inflation of 4.7% over the coming year, up from 4.6% a month earlier. The coming week is shortened for the bond market, which is closed Monday for Columbus Day while stocks trade normally. The U.S. Bureau of Labor Statistics releases the Consumer Price Index for September on Wednesday, October 14, at 8:30 a.m. ET, followed by the Producer Price Index on Thursday. The largest U.S. banks begin reporting third-quarter results on Tuesday, alongside two of the largest healthcare companies in the market. CONTINUED... Get the full week-ahead market report in The Roadmap at: stockpreachers.com In other industry developments and happenings in the market this week include: Humana Inc. (NYSE: HUM) Humana shares rose 11.6% on Friday after the company reported that, based on final 2027 Medicare Advantage Star Ratings data released by the Centers for Medicare & Medicaid Services on October 8, it has exceeded its goal of top-quartile results. Humana said 95% of its Medicare Advantage members are in plans rated 4 stars or above for 2027. The company affirmed its 2026 adjusted earnings per share guidance of at least $9.00 and scheduled a virtual investor update for December 10, 2026. "We'll keep finding new, better ways to support our members and improve their experience," said Jim Rechtin, Humana CEO. Delta Air Lines, Inc. (NYSE: DAL) Delta reported September quarter 2026 earnings of $1.72 per share on an adjusted basis and $1.15 per share on a GAAP basis, with GAAP operating revenue of $20.2 billion and pre-tax profit of $1.5 billion on an adjusted basis. The company now expects full-year 2026 earnings per share of $5.10 to $5.60 and free cash flow of about $2.5 billion, and expects December quarter revenue to rise about 20%. Shares recovered from an early decline to finish Friday nearly unchanged. "Demand remains strong, supported by consumers' growing preference for experiences and travel," said Delta CEO Ed Bastian, adding that the company expects to "generate a pre-tax profit of roughly $4.5 billion, absorbing a $6 billion increase in fuel costs." PepsiCo, Inc. (NASDAQ: PEP) PepsiCo reported third quarter 2026 net revenue of $25.27 billion on October 8, up 5.6%, with organic revenue up 3.1%. Reported earnings per share rose 17% to $2.23 and core earnings per share rose 2% to $2.34. The company raised its full-year organic revenue outlook to approximately 3% and lowered its core earnings per share growth outlook to a range of 2.5% to 3.5%. UnitedHealth Group Incorporated (NYSE: UNH) UnitedHealth Group will release its third quarter 2026 results before the market opens on Tuesday, October 13, with a conference call at 8:00 a.m. ET. In its second quarter, the company reported revenues of $112.0 billion, adjusted earnings per share of $6.38 and a medical care ratio of 86.7%, down from 89.4% a year earlier, and raised its 2026 adjusted earnings outlook to $19.50 to $20.00 per share. "Our results and outlook reflect the continuing progress in our work to simplify how we operate," said CEO Stephen Hemsley at the time. Johnson & Johnson (NYSE: JNJ) Johnson & Johnson will release its third quarter 2026 results at approximately 6:45 a.m. ET on Tuesday, October 13, with an investor call at 8:30 a.m. ET. For the second quarter, the company reported sales of $25.3 billion, up 6.6%, and raised its 2026 guidance to estimated reported sales of $101.1 billion and adjusted earnings per share of $11.68 at the midpoints. Start Every Week With a Plan Stock Preachers publishes The Roadmap, an in-depth market report released three times a week: a Monday week-ahead edition, a Wednesday mid-week update and a Friday recap covering the names, sectors and data driving the tape. Access is free during the public beta at stockpreachers.com. Contact Information: americannewsgroup.com Media Contact: [email protected] DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. 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