UNH

In recent months, UnitedHealth Group has reported better-than-expected earnings, raised its full-year adjusted EPS outlook, tightened medical cost trends, and moved to remove prior authorization requirements for a wide range of services while accelerating payments to rural hospitals. These steps suggest UnitedHealth Group is reshaping how it manages care delivery and insurer‑provider relationships, potentially reducing bureaucracy and improving member and clinician experience across its vast healthcare platform. Next, we’ll examine how UnitedHealth Group’s improved medical cost management may influence its existing investment narrative and longer-term outlook. Find 52 companies with promising cash flow potential yet trading below their fair value. To own UnitedHealth Group, you need to believe its scale, diversified Optum and insurance operations, and disciplined medical cost management can support resilient earnings, even as regulatory and utilization pressures persist. The near term story hinges on whether improved cost control in Medicare can offset ongoing commercial margin strain, while key risks center on rising healthcare costs outpacing pricing and uncertainty around Medicare funding. Recent earnings beats and guidance raises support the current catalyst, but do not remove these risks. The move to cut prior authorization for a wide range of services and accelerate payments to roughly 1,400 rural and Critical Access Hospitals is especially relevant here. It ties directly to medical cost trends, administrative expenses, and provider relationships, all of which influence margins and the pace of any earnings recovery. Investors watching UnitedHealth’s cost discipline and member experience will likely keep a close eye on how this policy change shows up in future results. Yet behind the improving numbers, investors should also be aware of mounting regulatory scrutiny and the possibility that... Read the full narrative on UnitedHealth Group (it's free!) UnitedHealth Group's narrative projects $498.6 billion revenue and $23.5 billion earnings by 2029. This requires 3.5% yearly revenue growth and an earnings increase of about $9.4 billion from $14.1 billion today. Uncover how UnitedHealth Group's forecasts yield a $475.23 fair value, a 19% upside to its current price. Some of the most optimistic analysts were already assuming revenue of about US$521.5 billion and earnings near US$26.3 billion by 2029, but the recent medical cost and prior authorization news could either support those stronger margin assumptions or reinforce the alternative view that rising regulatory and cost pressures might keep earnings closer to the lower end of forecasts, so it is worth comparing these competing stories before you decide which feels more realistic. Explore 16 other fair value estimates on UnitedHealth Group - why the stock might be worth just $384.04! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your UnitedHealth Group research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free UnitedHealth Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate UnitedHealth Group's overall financial health at a glance. Opportunities like this don't last. These are today's most promising picks. Check them out now: Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 30 best rare earth metal stocks of the very few that mine this essential strategic resource. Invest in the nuclear renaissance through our list of 91 elite nuclear energy infrastructure plays powering the global AI revolution. Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. 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 UNH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

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

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

Interested in The Estee Lauder Companies Inc.? Here are five stocks we like better. Estée Lauder returned to growth in fiscal 2026: Reported sales rose 5%, organic sales increased 3%, operating margin expanded to 11.2%, and diluted EPS jumped 66% to $2.51. Fourth-quarter organic growth accelerated to 5%, the strongest quarterly result of the year. Fragrance, skincare, China and digital channels led performance: Fragrance organic sales grew 10% and skincare 4%, while mainland China grew 9% and online sales increased at a double-digit rate to a record 34% of reported sales. Makeup stabilized, but haircare remained under pressure. Management expects continued improvement in fiscal 2027: The company forecast 3%–5% organic sales growth, adjusted operating margins of 12.7%–13.5% and diluted EPS of $3.10–$3.35, supported by restructuring savings, innovation and stronger travel-retail shipments. UnitedHealth Just Gave Wall Street a Clearer Turnaround Signal Estee Lauder Companies (NYSE:EL) said fiscal 2026 marked a return to growth and a substantial improvement in profitability as the prestige beauty company advanced its Beauty Reimagined strategy and Profit Recovery and Growth Plan. For the full fiscal year, reported sales rose 5% and organic sales increased 3%, with positive organic sales performance in every quarter, President and Chief Executive Officer Stéphane de La Faverie said. Gross margin expanded 150 basis points, operating margin increased 320 basis points to 11.2%, and diluted earnings per share rose 66% to $2.51. → Looking Beyond CrowdStrike? 3 AI Security Stocks Stand Out Overextended, e.l.f. Beauty Is Primed to Rebound in Back Half “We reignited growth with organic sales rising 3%, driven by the breadth of growth across brands and expanded operating margins significantly,” de La Faverie said. Fourth-quarter organic sales growth reached 5%, the company’s strongest quarterly performance of the year. Growth was broad-based across product categories and geographies, with the exception of haircare, according to Executive Vice President and Chief Financial Officer Akhil Shrivastava. Business disruptions related to the Middle East conflict reduced growth in the Europe, U.K., Middle East and Africa region by 2% during the quarter, he said. → 3 Robotics Stocks Under $10: Value, Momentum, or Bet? Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Skincare generated 4% organic sales growth during fiscal 2026, while fragrance sales increased 10% organically. De La Faverie said fragrance performance reflected demand for hero products and new launches from Le Labo, TOM FORD, KILIAN PARIS and Jo Malone London, as well as the launch of Balmain Beauty. Jo Malone London and TOM FORD joined Clinique, Estée Lauder, La Mer and M·A·C as billion-dollar brands in the company’s portfolio. Five of the six billion-dollar brands delivered sequential improvement in organic sales trends during the year, management said. The Ordinary continued to post double-digit organic sales growth and is approaching that sales milestone. → Michael Burry Is Betting Against Palantir Again—Should Investors Care? Makeup performance stabilized, with the organic sales trend improving by 500 basis points, led by M·A·C and TOM FORD. Management said M·A·C benefited from lip products and broader distribution in channels including specialty multi-retail and social commerce. The company also said it has been closing M·A·C freestanding stores where profitability and productivity were insufficient while shifting emphasis to faster-growing, more profitable channels. Haircare did not return to organic sales growth, although the company cited signs of a turnaround at Aveda in the U.S. The Ordinary’s hair-density serum remained a strong performer, management said. Mainland China led regional growth with organic sales up 9%, supported by high-single-digit skincare growth, mid-single-digit makeup growth and double-digit fragrance growth. De La Faverie said the company outperformed the prestige beauty market and gained share in China in every quarter of fiscal 2026, extending its share-gain streak to six consecutive quarters. He said 11 brands posted retail sales growth in China during the fourth quarter, including six that grew at double-digit rates. The company has also increased China-specific innovation, with about 30% of its worldwide innovation now coming from China for the Chinese market, he said. Global travel retail returned to growth during fiscal 2026 and represented about 15% of reported sales. Management said travel retail retail sales turned positive in June and July for the first time in three years, led by Hainan, where retail growth was double digit in the fourth quarter. The company said it is shipping to demand and considers inventory in travel retail to be in a good position. Online organic sales grew at a double-digit rate and accounted for a record 34% of reported sales, up three percentage points from fiscal 2025. Management cited share gains online across markets including China and the U.S. In North America, the company returned to organic sales growth in the fourth quarter, while retail sales rose at a mid-single-digit rate. Management said the region’s result was supported by gains in prestige beauty volume share and improving performance across brands including The Ordinary, M·A·C, Clinique, Bobbi Brown, Le Labo and TOM FORD. Estee Lauder concluded approvals under its Profit Recovery and Growth Plan as of June 30 and recorded $823 million in cumulative restructuring charges during fiscal 2026, primarily related to employee costs. Shrivastava said benefits from the program arrived more quickly than initially expected and helped fund additional consumer-facing investment. Cash flow from operating activities rose to $1.8 billion from $1.3 billion a year earlier, despite higher restructuring payments. Capital expenditures declined to $457 million from $602 million, and the company ended the year with $3.5 billion in cash. For fiscal 2027, the company forecast organic net sales growth of 3% to 5%, with stronger growth expected in the first half because of an earlier innovation slate and stronger travel retail shipments against a lower prior-year base. Management expects stronger EUKEM growth in the second half as it laps the prior-year disruptions tied to the Middle East conflict. Based on current conditions, the company does not expect the conflict’s effects to be material to fiscal 2027 results. Adjusted operating margin is expected to range from 12.7% to 13.5%. Adjusted effective tax rate is projected at approximately 33% to 34%. Diluted EPS is expected to be between $3.10 and $3.35. Operating cash flow is forecast at $1.3 billion to $1.4 billion, reflecting higher restructuring payments and working-capital needs to support growth. De La Faverie said the company will continue to focus on growing its core business and pursue minority investments and single-brand acquisitions that complement its portfolio. He said the company does not plan to pursue transformational acquisitions “for the foreseeable future,” citing a desire to avoid diversions from its current strategy. Management said it expects further operating leverage from lower non-consumer-facing expenses, continued restructuring savings and sales growth. Shrivastava added that the company’s cash priorities include consumer-facing capital expenditures, dividends and debt reduction. Estée Lauder Companies Inc (NYSE: EL) is a global leader in prestige beauty that develops, manufactures and markets a broad portfolio of skincare, makeup, fragrance and hair care products. Founded in 1946 by Estée Lauder, the company has grown from a small family business into a multinational consumer-products enterprise headquartered in New York City. Its activities span product research and development, brand and product marketing, manufacturing and global distribution across multiple retail channels. The company's portfolio includes a mix of legacy and prestige brands that target different consumer segments and price points, with well-known names such as Estée Lauder, Clinique, MAC, La Mer and Jo Malone among others. 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 "Estee Lauder Companies Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

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

CVS Health CVS is entering the second half of 2026 with stronger earnings momentum, higher cash generation and an improved Aetna profit outlook. Those gains strengthen the recovery case after a difficult period for the insurer. The trade-off is that medical-cost pressure and changing pharmacy benefit manager economics remain unresolved. CVS trades below major valuation benchmarks, but its multiple is already above its own five-year median. The Zacks Consensus Estimate for 2026 earnings has increased 7.9% over the prior four weeks, while projected 2026 EPS growth stands at 16.6%. Current cash flow growth of 65.3% adds another positive signal. Second-quarter results support that trend. Adjusted EPS increased 42.5% year over year to $2.58, while adjusted operating income rose 35.4% to $5.16 billion. CVS also raised 2026 adjusted EPS guidance to $7.90-$8.10. Image Source: Zacks Investment Research CVS trades at 11.7X forward 12-month earnings, below the Zacks sub-industry's 16.2X and the S&P 500's 20.8X. The gap shows that investors still assign CVS a sizable discount despite improving earnings. Image Source: Zacks Investment Research The stock is less cheap against its own history. CVS' five-year median forward multiple is 10.3X, below the current level. Relative valuation is favorable, but the shares are not unusually inexpensive compared with their historical norm. Health Care Benefits is the clearest operating reason for greater confidence. Adjusted operating income increased by more than $2 billion year over year in the first half of 2026 as pricing discipline and medical-cost management improved profitability. CVS raised the segment's 2026 adjusted operating income outlook to $5.03-$5.37 billion, more than $1 billion above prior guidance. The medical benefit ratio improved to 87.4% in the second quarter from 89.9% a year earlier, showing measurable progress in the margin-recovery plan. The recovery still faces pressure from elevated medical utilization and reimbursement changes. CVS continues to take a prudent view of second-half medical costs, while retail pharmacy and pharmacy services face reimbursement and client-pricing pressure. Caremark adds uncertainty. Weaker 340B conditions are expected to create a 2027 earnings headwind, while management anticipates lower pharmacy benefit manager membership next year. Specialty pharmacy and generic opportunities may offset part of that pressure, but uneven earnings remain possible. The Cigna Group CI is relevant because its Evernorth Health Services business includes pharmacy benefit and related health-service operations. Cigna therefore offers another diversified model exposed to benefit-management economics. UnitedHealth Group UNH combines a large insurance franchise with health-services operations through Optum. It provides another useful reference point for investors assessing medical-cost and health-services trends across managed care. The bottom line is that CVS has better earnings momentum and a favorable relative valuation, but execution risk remains. Aetna is improving, while medical utilization, reimbursement pressure and Caremark's 2027 reset argue for more evidence that the gains can persist. CVS currently carries a Zacks Rank #3 (Hold), which fits that mixed setup rather than signaling an aggressive entry point. The stock also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those scores indicate favorable characteristics across several styles, but they are designed to complement the Zacks Rank. 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 Cigna Group (CI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CVS Health CVS raised its 2026 earnings and cash-flow outlook after a second quarter marked by stronger profitability across all operating segments. The improvement gives the company more room to rebuild margins after a difficult period for its Aetna insurance business. The recovery is gaining traction, but the path is not risk-free. Medical-cost pressure, reimbursement changes and a changing pharmacy benefit manager environment could still test the durability of the higher outlook. Second-quarter adjusted earnings rose 42.5% year over year to $2.58 per share, while revenues increased 7.3% to $106.10 billion. Adjusted operating income advanced 35.4% to $5.16 billion, reflecting gains across all operating segments. Health Care Benefits delivered the largest earnings improvement, while Health Services and Pharmacy & Consumer Wellness also posted higher adjusted operating income. That broader contribution matters because the recovery is not resting on a single business line. CVS lifted its 2026 adjusted EPS guidance to $7.90-$8.10 from $7.30-$7.50. The company now expects consolidated revenues of at least $414 billion and adjusted operating income of $16.58-$16.92 billion. Here’s where consensus estimates for the company’s revenues and earnings currently stand. Image Source: Zacks Investment Research Expected cash flow from operations also rose to at least $11.5 billion from at least $9.5 billion. The stronger cash outlook supports further leverage improvement after the company ended the second quarter with a leverage ratio of about 3.5 times. Aetna's Health Care Benefits business is becoming a larger earnings contributor as pricing discipline and medical-cost management improve results. Second-quarter adjusted operating income reached $2.43 billion, up 85.5% year over year, while the medical benefit ratio improved to 87.4% from 89.9%. CVS raised the segment's 2026 adjusted operating income outlook to $5.03-$5.37 billion, more than $1 billion above its prior guidance. Management expects the full-year medical benefit ratio to be about 89.75%, plus or minus 25 basis points, while continuing to take a prudent view of second-half medical costs. The higher outlook does not remove execution risk. CVS expects the Health Care Benefits medical benefit ratio to rise materially through the second half, while reimbursement pressure continues in retail pharmacy and pharmacy services. Weakness in the 340B business is also expected to create a 2027 headwind. Caremark faces another transition as regulatory changes and the shift toward net-cost pricing reshape pharmacy benefit manager economics. Management also expects lower Caremark membership in 2027 as it takes a more disciplined approach to contract renewals and some health-plan clients exit products or markets. Peer results show that managed-care and pharmacy-services operators are also adjusting to changing cost and contracting conditions. UnitedHealth Group UNH raised its 2026 adjusted earnings outlook after its second quarter, while The Cigna Group CI increased its 2026 adjusted income outlook after reporting year-over-year revenue and earnings growth. CVS has clearer operating momentum than it did a year ago, led by Aetna's margin recovery, stronger pharmacy execution and higher cash generation. Still, the second-half medical-cost trajectory and 2027 pharmacy-services headwinds argue for a measured view rather than assuming the recovery is complete. The stock currently carries a Zacks Rank #3 (Hold). CVS also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those favorable Style Scores point to attractive characteristics across valuation, growth and momentum, but the Zacks Rank keeps the near-term signal balanced as investors assess whether the higher guidance can translate into sustained. 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 Cigna Group (CI) : 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

Interested in CVS Health Corporation? Here are five stocks we like better. CVS Health exceeded second-quarter expectations, reporting $106 billion in revenue, adjusted EPS of $2.58 and adjusted operating income of $5.2 billion. The company raised its full-year 2026 adjusted EPS guidance to $7.90–$8.10 and operating cash flow outlook to at least $11.5 billion. The Health Care Benefits segment showed improving margins, supported by stronger Medicare performance and favorable risk-adjustment factors. CVS increased its full-year segment operating-income forecast by more than $1 billion, to $5.03–$5.37 billion. Pharmacy services and retail operations also posted growth, while CVS highlighted GLP-1 access and technology investments as strategic priorities. Management offered an early 2027 adjusted EPS view of at least $8.44 and maintained its target for mid-teens adjusted EPS compound annual growth through 2028. UnitedHealth Just Gave Wall Street a Clearer Turnaround Signal CVS Health (NYSE:CVS) reported second-quarter results that exceeded its expectations, citing earnings growth across all operating segments and raising its full-year outlook for adjusted earnings per share and operating cash flow. Chair and Chief Executive Officer David Joyner said the company generated adjusted operating income of $5.2 billion and adjusted earnings per share of $2.58 during the quarter. Revenue exceeded $106 billion, up more than 7% from the prior-year quarter, while adjusted operating income increased 35% and adjusted EPS rose more than 40%, Chief Financial Officer Brian Newman said. → 3 Drone Stocks That Should Soar After the Summer Slump Eli Lilly Wins Back CVS Health, Reverting Novo's Advantage The company raised its full-year 2026 adjusted EPS guidance by $0.60 to a range of $7.90 to $8.10. CVS also lifted its operating cash flow expectation by $2 billion to at least $11.5 billion, reflecting its updated earnings outlook and working-capital improvements. The company now expects at least $414 billion in full-year revenue and enterprise adjusted operating income of $16.58 billion to $16.92 billion. CVS’ Health Care Benefits segment, which includes Aetna, generated more than $37 billion in quarterly revenue, up over 3% from the prior year. Adjusted operating income was about $2.4 billion, while the medical benefit ratio was 87.4%. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 3 Healthcare Stocks Set to Benefit From the One Big Beautiful Bill Newman said results reflected continued margin recovery as well as approximately $500 million, or 140 basis points, of benefit from changes in the company’s individual exchange risk-adjustment position for the 2025 plan year and favorable prior-year development. Excluding those items, CVS said underlying performance still exceeded expectations, led by its Medicare business. Medical membership totaled roughly 26 million at quarter-end, flat sequentially and down approximately 700,000 from the prior year. The year-over-year decline primarily reflected CVS’ exit from the individual exchange business, partly offset by growth in commercial fee-based membership. → Jersey Mike's Serves Fresh Gains After IPO Stumble Steve Nelson, executive vice president of CVS Health and president of Aetna, said the company’s Medicare business has benefited from changes to its geographic footprint, product mix, annual enrollment execution, pricing discipline, favorable member mix and medical-cost management. Nelson said Aetna expects to continue progressing toward target margins in 2027. For the full year, CVS now expects Health Care Benefits adjusted operating income of $5.03 billion to $5.37 billion, an increase of more than $1 billion from its earlier forecast. It expects a full-year medical benefit ratio of 89.75%, plus or minus 25 basis points. The Health Services segment produced nearly $52 billion in revenue, up more than 11%, and adjusted operating income of more than $1.7 billion, up 10%. Revenue growth was driven by pharmacy drug mix and brand inflation, partly offset by pharmacy client price improvements. Newman said the segment benefited from improved purchasing economics, pharmacy mix and modest improvement in the health care delivery business. CVS also cited higher specialty generic penetration rates. However, the company experienced pressure in its 340B business, which it said remains subject to a changing environment. CVS also said some value originally expected in the second half was pulled forward into the second quarter. Prem Shah, executive vice president and group president of CVS Health, said restrictions imposed by pharmaceutical manufacturers on covered entities contributed to the 340B pressure. The company expects 340B to become a headwind in 2027, although management said it remains confident in its 2026 Health Services outlook. CVS expects Caremark membership to decline next year, citing a more disciplined approach to contract underwriting and renewals, as well as product actions and market exits by some health-plan customers. Shah said the company expects its specialty pharmacy business, including generic opportunities, to partially offset those pressures. The Pharmacy and Consumer Wellness segment reported nearly $34 billion in revenue and nearly $1.5 billion in adjusted operating income, with operating income rising more than 10% year over year. Same-store pharmacy sales increased approximately 3%, supported by a 7% increase in same-store prescription volume. Same-store front-store sales improved 100 basis points from the prior-year period. CVS raised its full-year Pharmacy and Consumer Wellness adjusted operating income expectation by $220 million to at least $6.4 billion. Newman said results were supported by core pharmacy strength and contributions from the Rite Aid transaction completed last year. Joyner highlighted CVS’ efforts to serve patients using GLP-1 therapies for weight loss through both benefit-plan and cash-pay channels. He said MinuteClinic’s virtual weight-management offering connects eligible patients with licensed clinicians for $29, while eligible patients may obtain GLP-1 therapies for as little as $149 through cash-pay options. CVS plans to expand a partnership with Eli Lilly later this year, allowing eligible Zepbound and Mounjaro patients to access cash-pay pricing for same-day pickup through the CVS Health app or stores. The company also has an existing relationship with Novo Nordisk to dispense oral and injectable Wegovy. Management also emphasized investments in artificial intelligence and technology. Joyner said CVS has committed to invest more than $20 billion in technology efforts over the next decade. The company said its AI-enabled Claims Assist Manager is expected to reduce claims-processing time by more than 20% and accelerate payment on hundreds of millions of claims annually. Newman said CVS has generated more than $1 billion in operating-expense savings over the last several years through technology efficiencies and AI. He said ongoing investments are incorporated into the company’s updated 2026 outlook and its preliminary expectations for 2027. CVS said it remains confident in its target of mid-teens adjusted EPS compound annual growth from 2025 through 2028. While it will provide formal 2027 guidance later, Newman said adjusted EPS of at least $8.44 appears reasonable based on current conditions. That would represent approximately 13% growth from an adjusted $7.46 baseline, which excludes prior-year development and prior-year items related to the individual exchange business CVS has exited. The company ended the quarter with approximately $2.7 billion of cash at the parent and unrestricted subsidiaries, a leverage ratio of about 3.5 times, and year-to-date operating cash flow of approximately $10.6 billion. CVS returned more than $1.7 billion to shareholders through dividends during the first half and said its outlook does not assume share repurchases this year. CVS Health Corporation is a diversified healthcare company that operates a large network of retail pharmacies, pharmacy benefit management services and health care solutions. Headquartered in Woonsocket, Rhode Island, the company traces its roots to the early 1960s and has grown into an integrated provider of prescription drugs, over‑the‑counter products, clinical services and health insurance offerings. Its operating model combines retail pharmacy locations and in‑store clinics with broader pharmacy and health plan capabilities. Key business activities include CVS Pharmacy retail operations, MinuteClinic walk‑in medical clinics and HealthHUB locations that offer expanded clinical services. 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 "CVS Health Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

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