The Cigna Group, together with its subsidiaries, provides insurance and related products and services in the United States. Its Evernorth Health Services segment provides a range of coordinated and point solution health services, including pharmacy benefits, home delivery pharmacy, specialty pharmacy, distribution, and care delivery and management solutions to health plans, employers, government organizations, and health care providers. The company's Cigna Healthcare segment offers medical, pharmacy, behavioral health, dental, and other products and services for insured and self-insured customers; Medicare Advantage, Medicare Supplement, and Medicare Part D plans for seniors, as well as individual health insurance plans; and health care coverage in its international markets, as well as health care benefits for mobile individuals and employees of multinational organizations. In addition, it offers permanent insurance contracts sold to corporations to provide coverage on the lives of certain employees for financing employer-paid future benefit obligations. The company distributes its products and services through insurance brokers and consultants; directly to employers, unions and other groups, or individuals; and private and public exchanges. The company was formerly known as Cigna Corporation and changed its name to The Cigna Group in February 2023. The Cigna Group was founded in 1792 and is headquartered in Bloomfield, Connecticut.

Cigna Group’s valuation looks inexpensive on a multiples basis, but the fundamental picture is not strong enough to justify aggressively raising the target price. P/E of 11.4, P/S of 0.27, P/B of 1.70, and P/FCF of 9.25 are noticeably below the industry median, which suggests potential undervaluation and supports the current valuation. At the same time, the P/FCF trend has improved sharply from levels around 22–23 previously, while P/E and P/B remain relatively stable, indicating healthier earnings quality and cash flow. On the other hand, liquidity is weak: a current ratio of 0.74 and a quick ratio of 0.00 look very weak even for the insurance/healthcare business and limit room for a higher multiple. The debt burden is also not ideal: debt/equity of 0.69 is above the industry median, and long-term debt remains significant, although there has been no clear deterioration over the years. Profitability is mixed: a gross margin of 88.5% is strong, but operating margin of 3.5% and net margin of 2.3% are low relative to the industry, and ROA of 4.05% is also weaker than the median. ROE of 15.2% looks acceptable and supports the case for a normal return on equity, but not high enough to justify a meaningful valuation premium. Revenue, profit, and operating income in absolute terms remain large and generally stable, which reduces the risk of a sharp downward revision. Dividend yield of 0.57% is moderate and rising, but too small to become a key driver of revaluation. Overall, the company looks solid and profitable, but with limited liquidity and unimpressive operating margins, so only a slight negative adjustment to the current target is justified. For an investor, this is more a story of a stable large-cap business with moderate undervaluation than a candidate for strong fundamental upside.

The Cigna Group

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, незначительно вырос. Рынок не поддерживает быков.

Medium index, slightly up. The market does not support the bulls.

Слабый индекс, незначительно вырос

CI looks inexpensive on valuation multiples and stable in terms of earnings, but weak liquidity and low margins limit its re-rating potential.

The S&P 500 Index ($SPX) (SPY) is down -0.25% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.69%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.12%. E-mini S&P futures (ESU26) are down -0.92%, and September E-mini Nasdaq futures (NQU26) are up +0.11%.
Stock indexes are mostly lower today, with the Dow Jones Industrial Average falling to a 5-week low. The broader market is under pressure for a second day amid mounting inflation risks. WTI crude oil prices are up more than +2% today to a 3.25-month high amid escalating hostilities in the Middle East, heightening concerns about energy flows through the Strait of Hormuz. The surge in energy prices is boosting inflation expectations and pushing bond yields higher. The 10-year T-note yield rose to 4.82% today, the highest in 2.75 years. The higher bond yields are weighing on stocks.
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On the positive side, strength in chipmakers and AI-infrastructure stocks is supporting the Nasdaq 100 index. Energy producers are also climbing today on the strength in crude oil prices.
Also, an escalating trade war between the US and Canada is weighing on market sentiment. On Tuesday, Canada imposed tariffs of 15% to 50% on hundreds of US goods in retaliation for the US action last month to impose 50% tariffs on $20 billion of imports from Canada. The US responded by moving to block imports of some Canadian products and slapping new tariffs on others, as well as seeking to bar Canadian companies from selling to US government contractors.
US MBA mortgage applications fell -2.7% in the week ended September 4, with the purchase mortgage sub-index down -0.2% and the refinancing mortgage sub-index down -6.2%. The average 30-year fixed-rate mortgage rose +6 bp to a 14-month high of 6.85% from 6.79% in the prior week.
Oct WTI crude oil prices (CLV26) are up more than +2% today at a 3.25-month high due to the latest escalation of hostilities in the Middle East. The US destroyed five Iranian tankers carrying crude in response to two attempts by Iran to hit US Navy ships with ballistic missiles. Iran responded by firing missiles at a US air base in Jordan and warning ships in the Persian Gulf that they would be attacked.
The markets are discounting a 64% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are mixed today. The Euro Stoxx 50 fell to a 5-week low and is down -1.61%. China's Shanghai Composite closed up +0.28%. Japan's Nikkei-225 Stock Average closed down -0.19%.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -3 ticks today. The 10-year T-note yield is up +0.8 bp to 4.810%. T-notes fell to a 2.75-year nearest-futures low today, and the 10-year T-note yield rose to a 2.75-year high of 4.816%. T-notes are under pressure from higher crude oil prices, which are boosting inflation expectations, as WTI crude oil is up more than +2% to a 3.25-month high. Supply pressures are also weighing on T-note prices as the Treasury will auction $39 billion in 10-year T-notes later today.
European government bond yields are moving higher today. The 10-year German bund yield climbed to a new 15-year high of 3.423% and is up +5.0 bp to 3.416%. The 10-year UK gilt yield is up +5.1 bp to 5.225%.
French July manufacturing production unexpectedly fell -0.8% m/m, weaker than expectations of a +0.4% m/m increase.
Markets are discounting a 100% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Weakness in health insurance stocks is weighing on the broader market today. UnitedHealth Group (UNH)is down more than -5% to lead losers in the Dow Jones Industrials, and Centene (CNC) is down more than -4%. Also, Humana (HUM) and Molina Healthcare (MOH) are down more than -3%, and CVS Health Corp (CVS) and Elevance Health (ELV) are down more than -2%. In addition, Cigna Group (CI) is down more than -1%.
Chipmakers and AI-infrastructure stocks are moving higher today, a positive factor for the overall market. Marvell Technology (MRVL) is up more than +5% to lead gainers in the S&P 500 and Nasdaq 100. Also, ARM Holdings (ARM) is up more than +4%, and Advanced Micro Devices (AMD), Micron Technology (MU), and SanDisk (SNDK) are up more than +3%., In addition, Western Digital (WDC) is up more than +2%, and Qualcomm (QCOM) is up more than +1%.
Energy producers and service providers are moving higher today, with WTI crude up more than +2% at a 3.25-month high. APA Corp (APA), Baker Hughes (BKR), Diamondback Energy (FANG), ExxonMobil Holdings (XOM), Halliburton (HAL), Marathon Petroleum (MPC), Occidental Petroleum (OXY), and SLB Ltd (SLB) are up more than +2%, and Chevron (CVX) is up more than +2% to lead gainers in the Dow Jones Industrials. Also, ConocoPhillips (COP) and Devon Energy (DVN) are up more than +1%.
ServiceTitan (TTAN) is down more than -19% after reporting a Q2 EPS loss of -26 cents, a bigger loss than the consensus of -25 cents.
Casy’s General Stores (CASY) is down more than -17% to lead losers in the S&P 500 after reporting a Q1 gross margin of 21.8%, below the consensus of 22.3%.
Chewy (CHWY) is down more than -7% after forecasting a sequential decline in Q3 gross margin, due to a timing shift as certain rebate benefits shifted from the second half of the year into Q2.
Smithfield Foods (SFD) is down more than -6% after cutting its Q3 earnings outlook, citing “continued compression in the industry fresh pork market spread and lower hog prices.”
Booking Holdings (BKNG) is down more than -4% to lead losers in the Nasdaq 100 after losing an EU court fight over its takeover of Sweden’s Etraveli Group, when a judge said regulators were right to conclude that the planned buyout threatened fair competition.
Dyne Therapeutics (DYN) is down more than -3% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $10.
Chime Financial (CHYM) is up more than +7% after boosting its full-year revenue forecast to $2.76 billion to $2.77 billion from a previous forecast of $2.73 billion to $2.75 billion, stronger than the consensus of $2.74 billion.
Meta Platforms (META) is up more than +5% to lead gainers in the S&P 500 and Nasdaq 100 after analysts reported positive reviews of the company’s debut of Muse, an AI assistant.
Dell Technologies (DELL) is up more than +5% after Evercore ISI raised its price target on the stock to $650 from $575.
Earnings Reports (9/9/2026)
AeroVironment Inc (AVAV), Chewy Inc (CHWY), Cooper Cos Inc/The (COO), Core & Main Inc (CNM), SailPoint Inc (SAIL), Sunbelt Rentals Holdings Inc (SUNB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Pressured as Inflation Fears Boost Bond Yields

Key Points
Everett sold 617 shares at $284.05 per share for a total value of ~$175,000 on September 3, 2026.
The transaction involved shares equal to 11% of the equity held before the filing.
The disposal was executed directly from the executive's equity holdings and conducted under a pre-arranged Rule 10b5-1 trading plan.
The activity reflects routine portfolio management under a plan adopted in June 2026.
Neville Everett, Executive Vice President and Special Advisor to the CEO at The Cigna Group (NYSE:CI), sold 617 shares of common stock on Sept. 3, 2026, according to a SEC Form 4 filing.
Transaction summary
Shares sold
617
Transaction value
~$175,259
Post-transaction shares (directly held)
5,053
Post-transaction value
$1.45 million
Transaction value based on SEC Form 4 weighted average sale price ($284.05); post-transaction value based on Sept. 3, 2026, market close ($286.26).
Key questions
How did the pre-arranged trading plan influence the timing of this sale?
The disposition was executed under a Rule 10b5-1 trading plan adopted on June 2, 2026, a mechanism that establishes a predetermined schedule for equity sales and removes discretionary timing from the process.
What is the current scale of the executive's direct equity interest in the company?
Following the disposal of 617 shares, the insider maintains a direct position of 5,053 shares, which carries a market value of $1.45 million based on the Sept. 3, 2026, market close price of $286.26.
How does this equity sale relate to the company's performance over the past year?
The executive sold shares at $284.05 per share on a date when the company's stock had generated a one-year total return of -2.7% as of the Sept. 3, 2026 market close.
What is the executive's total ownership stake in the firm following this transaction?
The executive currently holds 0.0019% of the common stock in Cigna Group, with all reported equity held directly according to the filing.
Company Overview
Share Price (as of market close 2026-09-08)
$275.83
Market Capitalization
$72.5 billion
Revenue (TTM)
$282.5 billion
Net Income (TTM)
$6.9 billion
Company Snapshot
The Cigna Group operates through two primary segments: Evernorth, which provides coordinated and specialized health solutions including pharmacy services, benefits administration, care management and delivery, and advanced intelligence solutions; and its core insurance operations offering medical, dental, behavioral health, and supplemental insurance products across the United States.
The company generates revenue through premium income from health insurance policies, pharmacy benefit management services, care coordination and management services, and benefits administration fees charged to employers, health plans, and government programs.
Cigna serves a diverse clientele, including employers of all sizes, health plans, government programs, and individual consumers, positioning itself as a comprehensive healthcare solutions provider serving millions of members across medical, pharmacy, dental, and behavioral health services.
The Cigna Group is one of the largest integrated healthcare companies in the United States, with TTM revenues of $282.4 billion and a market capitalization of $73.1 billion, reflecting its substantial scale within the healthcare sector.
The company's competitive advantage derives from its integrated business model combining health insurance with pharmacy benefit management and care management services, enabling coordinated care delivery and operational efficiencies.
With approximately 66,685 employees and operations spanning medical insurance, pharmacy services, and specialized health solutions, Cigna is positioned as a diversified healthcare platform addressing multiple segments of the healthcare value chain.
What this transaction means for investors
This sale shouldn't concern investors. It was a small portion of the executive's total stake in the company's stock. Moreover, the sale was executed under a Rule 10b5-1 plan, which insiders commonly use to execute pre-planned sales for personal reasons unrelated to the company's fundamentals.
Importantly, Cigna continues to perform mostly in line with its historical trend. TTM revenue grew nearly 8% year over year, and operating margin held at 3.5%. This reflects tailwinds in the specialty pharmacy market, leading to greater affordability with generics and improved earnings growth.
The stock is trading off its 2024 highs and sitting at a modest forward price-to-earnings multiple of 8.7x. This is even as analysts project roughly 11% annualized earnings growth over the next several years.
Should you buy stock in Cigna Group right now?
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Cigna Group Executive Neville Everett Sells 617 Shares for $175,000

Looking at the universe of stocks we cover at Dividend Channel, on 9/8/26, The Cigna Group (Symbol: CI) will trade ex-dividend, for its quarterly dividend of $1.56, payable on 9/23/26. As a percentage of CI's recent stock price of $283.54, this dividend works out to approximately 0.55%, so look for shares of The Cigna Group to trade 0.55% lower — all else being equal — when CI shares open for trading on 9/8/26.
In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from CI is likely to continue, and whether the current estimated yield of 2.20% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of CI shares, versus its 200 day moving average:
Looking at the chart above, CI's low point in its 52 week range is $239.51 per share, with $315.47 as the 52 week high point — that compares with a last trade of $283.20.
According to the ETF Finder at ETF Channel, CI makes up 4.03% of the iShares U.S. Healthcare Providers ETF (Symbol: IHF) which is trading lower by about 0.8% on the day Friday. (see other ETFs holding CI).
In Friday trading, The Cigna Group shares are currently down about 0.9% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Further CI Research:

Cash Dividend On The Way From The Cigna Group (CI)

The S&P 500 Index ($SPX) (SPY) closed down by -0.71% on Tuesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.79%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -1.29%. E-mini S&P futures (ESU26) fell -0.71%, and September E-mini Nasdaq futures (NQU26) fell -1.25%.
Stock indices retreated on Tuesday, with the S&P 500 falling to a 4-week low, the Dow Jones Industrials sliding to a 1-month low, and the Nasdaq 100 posting a 1-week low. Stocks fell as surging oil prices boosted inflation expectations and bond yields and ramped up expectations that global central banks will keep raising interest rates. Investors are demanding higher yields to hold bonds as concerns intensify over persistent inflation, government spending, and surging corporate borrowing to finance the AI buildout. The higher bond yields sparked a retreat in chipmakers and AI-infrastructure stocks on Tuesday.
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Tuesday’s global bond sell-off pushed bond yields to multi-year highs and undercut stocks. The UK 10-year Gilt yield soared to an 18-year high of 5.25%, the German 10-year Bund yield jumped to a 15-year high of 3.36%, the Japanese 10-year JGB bond yield surged to a 30-year high of 3.00%, and the 10-year T-note yield rose to a 1.75-year high of 4.80%.
Stocks maintained their losses on Tuesday amid weaker-than-expected US economic news, including Aug ISM manufacturing, July construction spending, and July JOLTS job openings.
The US Aug ISM manufacturing index fell -1.0 to 54.6, weaker than expectations of 55.2. The Aug ISM prices paid sub-index was unchanged at 71.1, stronger than expectations of a decline to 70.8.
US July construction spending fell by -0.5% m/m, weaker than expectations of no change.
The US July JOLTS job openings unexpectedly rose +89,000 to 7.271 million from a downward-revised 7.182 million in June, weaker than expectations of 7.313 million.
Hawkish comments on Tuesday from Fed Governor Michael Barr were bearish for stocks and bonds when he said, "If inflation appears not to be moderating sufficiently, then I think we should act decisively to raise interest rates."
Oct WTI crude oil prices (CLV26) surged more than +5% on Tuesday to a 6-week high as Middle East hostilities escalated. Late Monday, two oil supertankers were struck by projectiles while attempting to exit the Strait of Hormuz. Also on Monday, the US struck Iranian rocket launchers preparing to send mines into the Strait of Hormuz, and Iran retaliated by firing missiles and drones at US air bases in Jordan, while the United Arab Emirates said it intercepted drones from Iran.
Crude prices raced to their highs Tuesday afternoon when the US launched a fresh wave of strikes against targets in Iran in retaliation for Iran trying to put mines in the Strait of Hormuz and for earlier strikes on a US military base in Jordan. Iran said it retaliated with a “decisive operation” against US bases in the Middle East.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 487 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 69% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets settled lower on Tuesday. The Euro Stoxx 50 fell to a 1-month low and closed down -0.80%. China's Shanghai Composite fell from a 7-week high and closed down -0.16%. Japan's Nikkei-225 Stock Average closed down -0.15%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down by -9 ticks on Tuesday. The 10-year T-note yield rose +4.2 bp to 4.792%. T-notes dropped to a 1.75-year nearest-futures low on Tuesday, and the 10-year T-note yield rose to a 1.75-year high of 4.798%. T-notes were under pressure from Tuesday’s +5% surge in WTI crude oil prices to a 6-week high, which boosted inflation expectations and is hawkish for Fed policy. The 10-year breakeven inflation rate rose to a 1.5-week high of 2.360% on Tuesday. T-notes are also being pressured by negative carryover from last Friday, when hawkish comments from Fed Chair Warsh pushed the chances of a Fed rate hike at next month’s FOMC meeting up to 69% on Tuesday from 36% before he spoke.
Losses in T-notes were limited on Tuesday amid weaker-than-expected US economic news on Aug ISM manufacturing, July construction spending, and July JOLTS job openings that sparked some short covering in T-notes.
European government bond yields moved higher on Tuesday. The 10-year German bund yield rose to a 15-year high of 3.364% and finished up +2.0 bp to 3.344%. The 10-year UK gilt yield surged to an 18-year high of 5.250% and finished up +15.7 bp to 5.220%.
The Eurozone Aug CPI rose +3.3% y/y, in line with expectations and the largest increase in nearly 3 years. Aug core CPI rose +2.4% y/y, weaker than expectations of +2.5% y/y.
The Eurozone July unemployment rate was unchanged at 6.4%, showing a slightly weaker labor market than expectations of 6.3%.
The Eurozone Aug S&P manufacturing PMI was revised downward by -0.1 to 52.7 from the previously reported 52.8.
German July retail sales unexpectedly fell by -3.4% m/m, weaker than expectations of +0.5% m/m and the biggest decline in 5 years.
ECB Governing Council member Martin Kocher said, "Upside risks to inflation have increased again recently. If this picture is confirmed in the ECB's new forecast, I believe another interest rate hike will be necessary in the near future."
The UK Aug S&P manufacturing PMI was revised upward by +0.2 to 51.7 from the previously reported 51.5.
Markets are discounting a 99% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks retreated on Tuesday amid the surge in bond yields. Lam Research (LRCX), Applied Materials (AMAT), KLA Corp (KLAC), ARM Holdings Plc (ARM), and Texas Instruments (TXN) closed down more than -3%. Also, Advanced Micro Devices (AMD), Microchip Technology (MCHP), ASML Holding NV (ASML), Micron Technology (MU), Analog Devices (ADI), and Qualcomm (QCOM) closed down more than -2%.
Cybersecurity stocks sold off on Tuesday, weighing on the broader market. CrowdStrike Holdings (CRWD) closed down more than -7%, and Cloudflare (NET) and SentinelOne (S) closed down more than -6%. Also, Palo Alto Networks (PANW), Fortinet (FTNT), and Zscaler (ZS) closed down more than -5%, and Okta (OKTA) closed down more than +4%.
Cryptocurrency stocks moved lower on Tuesday after Bitcoin (^BTCUSD) fell more than -2%. Circle Internet Group (CRCL), Strategy (MSTR), Riot Platforms (RIOT), and Coinbase Global (COIN) closed down more than -6%. Also, MARA Holdings (MARA) and Galaxy Digital Holdings (GLXY) closed down more than -4%.
Mining stocks fell on Tuesday as gold, silver, and copper prices slumped. Freeport-McMoRan (FCX) closed down more than -4%, and Hecla Mining (HL), Anglogold Ashanti (AU), Barrick Mining (B), and Southern Copper (SCCO) closed down more than -3%. Also, Coeur Mining (CDE) and Newmont Corp (NEM) closed down more than -2%.
Home builders and home supplies fell on Tuesday after the 10-year T-note yield rose to a 1.75-year high, raising mortgage rates and weighing on housing demand. Builders Firstsource (BLDR) closed down more than -5%, and DR Horton (DHI), Pulte Group (PHM), KB Home (KBH), Toll Brothers (TOL), and Home Depot (HD) closed down more than -2%. Also, Lennar (LEN) closed down more than -1%.
Defensive health insurance stocks moved higher on Tuesday, with the slump in the broader market. Humana (HUM) and CVS Health Corp (CVS) closed up more than +3%, and Elevance Health (ELV), Cardinal Health (CAH), the Cigna Group (CI), and Molina Healthcare (MOH) closed up more than +2%. Also, UnitedHealth Group (UNH) and Centene (CNC) closed up more than +1%.
Fervo Energy (FRVO) closed up more than +28% on a Wall Street Journal report that said the company has signed a deal to sell power to Alphabet’s Google.
Duolingo (DUOL) closed up more than +7% after Evercore ISI upgraded the stock to outperform from in line with a price target of $210.
Howmet Aerospace (HWM) closed up more than +4% after Citigroup said Monday’s selloff in the stock was “overblown,” and maintains its buy rating on the stock.
Earnings Reports (9/2/2026)
Broadcom Inc (AVGO), Brown-Forman Corp (BF/B), Five Below Inc (FIVE), Hewlett Packard Enterprise Co (HPE), NetApp Inc (NTAP), Ollie's Bargain Outlet Holding (OLLI), PVH Corp (PVH), Snowflake Inc (SNOW).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Settle Lower as Bond Yields Surge

The S&P 500 Index ($SPX) (SPY) is down by -0.44% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.34%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.96%. E-mini S&P futures (ESU26) are down -0.46%, and September E-mini Nasdaq futures (NQU26) are down -0.98%.
Stock indices are trading lower today, with the S&P 500 falling to a 4-week low and the Dow Jones Industrials and the Nasdaq 100 posting 1-week lows. Stocks are sliding as rising oil prices boost inflation expectations and ramp up expectations that global central banks will keep raising interest rates. Investors are demanding higher yields to hold bonds as concerns intensify about persistent inflation, government spending, and surging corporate borrowing to finance the AI buildout. The higher bond yields have sparked a retreat in chipmakers and AI-infrastructure stocks today.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Today’s global bond sell-off has pushed bond yields to multi-year highs and is undercutting stocks. The UK 10-year Gilt yield soared to an 18-year high of 5.25%, the German 10-year Bund yield jumped to a 15-year high of 3.36%, the Japanese 10-year JGB bond yield surged to a 30-year high of 3.00%, and the 10-year T-note yield rose to a 1.75-year high of 4.80%.
Stocks maintained their losses today on weaker-than-expected US economic news, including Aug ISM manufacturing, July construction spending, and July JOLTS job openings.
The US Aug ISM manufacturing index fell -1.0 to 54.6, weaker than expectations of 55.2. The Aug ISM prices paid sub-index was unchanged at 71.1, stronger than expectations of a decline to 70.8.
US July construction spending fell -0.5% m/m, weaker than expectations of no change.
The US July JOLTS job openings unexpectedly rose +89,000 to 7.271 million from a downward revised 7.182 million in June, weaker than expectations of 7.313 million.
Hawkish comments today from Fed Governor Michael Barr were bearish for stocks and bonds when he said, "If inflation appears not to be moderating sufficiently, then I think we should act decisively to raise interest rates."
Oct WTI crude oil prices (CLV26) are up more than +2% today to a 6-week high as Middle East hostilities escalate. Late Monday, two oil supertankers were struck by projectiles while attempting to exit the Strait of Hormuz. Also on Monday, the US struck Iranian rocket launchers preparing to send mines into the Strait of Hormuz, and Iran retaliated by firing missiles and drones at US air bases in Jordan, while the United Arab Emirates said it intercepted drones from Iran. Axios reported that President Trump is weighing limited strikes against Iran to prevent it from reconstituting its radar and missile capabilities to attack ships in the Strait of Hormuz.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 486 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 65% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are lower today. The Euro Stoxx 50 fell to a 1-month low and is down -0.73%. China's Shanghai Composite fell from a 7-week high and closed down -0.16%. Japan's Nikkei-225 Stock Average closed down -0.15%.
Interest Rates
December 10-year T-notes (ZNZ6) are down -4 ticks today. The 10-year T-note yield is up +1.2 bp to 4.762%. T-notes dropped to a 1.75-year nearest-futures low today, and the 10-year T-note yield rose to a 1.75-year high of 4.796%. T-notes are under pressure from today’s +2% jump in WTI crude oil prices to a 6-week high, which boosts inflation expectations and is hawkish for Fed policy. T-notes are also being pressured by negative carryover from last Friday, when hawkish comments from Fed Chair Warsh pushed the chances of a Fed rate hike at next month’s FOMC meeting up to 65% today from 36% before he spoke.
T-notes recovered from their worst level today after weaker-than-expected US economic news on Aug ISM manufacturing, July construction spending, and July JOLTS job openings sparked short covering in T-notes.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 15-year high of 3.364% and is up +0.8 bp to 3.332%. The 10-year UK gilt yield surged to an 18-year high of 5.250% and is up +13.6 bp to 5.199%.
The Eurozone Aug CPI rose +3.3% y/y, in line with expectations and the largest increase in nearly 3 years. Aug core CPI rose +2.4% y/y, weaker than expectations of +2.5% y/y.
The Eurozone July unemployment rate was unchanged at 6.4%, showing a slightly weaker labor market than expectations of 6.3%.
The Eurozone Aug S&P manufacturing PMI was revised downward by -0.1 to 52.7 from the previously reported 52.8.
German July retail sales unexpectedly fell by -3.4% m/m, weaker than expectations of +0.5% m/m and the biggest decline in 5 years.
ECB Governing Council member Martin Kocher said, "Upside risks to inflation have increased again recently. If this picture is confirmed in the ECB's new forecast, I believe another interest rate hike will be necessary in the near future."
The UK Aug S&P manufacturing PMI was revised upward by +0.2 to 51.7 from the previously reported 51.5.
Markets are discounting a 98% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks are retreating today amid the surge in bond yields. Qualcomm (QCOM), Lam Research (LRCX), Advanced Micro Devices (AMD), and KLA Corp (KLAC) are down more than -3%, and Applied Materials (AMAT), Analog Devices (ADI), Microchip Technology (MCHP), Marvel Technology (MRVL), ASML Holding NV (ASML), and Texas Instruments (TXN) are down more than -2%.
Cybersecurity stocks are weaker today, weighing on the broader market. CrowdStrike Holdings (CRWD) is down more than -6% to lead losers in the S&P 500 and the Nasdaq 100. Also, Palo Alto Networks (PANW) and SentinelOne (S) are down more than -5%, and Okta (OKTA), Fortinet (FTNT), and Zscaler (ZS) are down more than -4%, and Cloudflare (NET) is down more than +3%.
Cryptocurrency stocks are sliding today, with Bitcoin (^BTCUSD) down nearly -1%. Riot Platforms (RIOT) is down more than -5%, and Circle Internet Group (CRCL) and MARA Holdings (MARA) are down more than -3%. Also, Coinbase Global (COIN), Galaxy Digital Holdings (GLXY), Strategy (MSTR), and Iren Ltd (IREN) are down more than -2%.
Defensive health insurance stocks are climbing today, with the slump in the broader market. Humana (HUM) and CVS Health Corp (CVS) are up more than +3%, and Elevance Health (ELV), Centene (CNC), Cardinal Health (CAH), the Cigna Group (CI), and Molina Healthcare (MOH) are up more than +2%. Also, UnitedHealth Group (UNH) and Universal Health Services (UHS) are up more than +1%.
Amazon.com (AMZN) is down more than -2% to lead losers in the Dow Jones Industrials after the US Federal Trade Commission and a group of US states sued the company over claims it overcharged advertisers by more than $20 billion since 2019.
Fervo Energy (FRVO) is up more than +23% on a Wall Street Journal report that said the company has signed a deal to sell power to Alphabet’s Google.
Duolingo (DUOL) is up more than +5% after Evercore ISI upgraded the stock to outperform from in line with a price target of $210.
Howmet Aerospace (HWM) is up more than +3% to lead gainers in the S&P 500 after Citigroup said Monday’s selloff in the stock was “overblown,” and maintains its buy rating on the stock.
Earnings Reports (9/1/2026)
Credo Technology Group Holding (CRDO), Dell Technologies Inc (DELL), Gitlab Inc (GTLB), Medtronic PLC (MDT), MongoDB Inc (MDB), Palo Alto Networks Inc (PANW).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Global Bond Selloff Weighs on Stocks

The S&P 500 Index ($SPX) (SPY) is down by -0.66% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.43%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -1.30%. E-mini S&P futures (ESU26) are down -0.66%, and September E-mini Nasdaq futures (NQU26) are down -1.26%.
Stock indices are trading lower today, with the S&P 500 falling to a 4-week low and the Dow Jones Industrials and the Nasdaq 100 posting 1-week lows. Stocks are sliding as rising oil prices boost inflation expectations and ramp up expectations that global central banks will keep raising interest rates. Investors are demanding higher yields to hold bonds as concerns intensify about persistent inflation, government spending, and surging corporate borrowing to finance the AI buildout. The higher bond yields have sparked a retreat in chipmakers and AI-infrastructure stocks today.
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Today’s global bond sell-off has pushed bond yields to multi-year highs and is undercutting stocks. The UK 10-year Gilt yield soared to an 18-year high of 5.25%, the German 10-year Bund yield jumped to a 15-year high of 3.36%, the Japanese 10-year JGB bond yield surged to a 30-year high of 3.00%, and the 10-year T-note yield rose to a 1.75-year high of 4.80%.
Oct WTI crude oil prices (CLV26) are up more than +2% today to a 6-week high as Middle East hostilities escalate. Late Monday, two oil supertankers were struck by projectiles while attempting to exit the Strait of Hormuz. Also on Monday, the US struck Iranian rocket launchers preparing to send mines into the Strait of Hormuz, and Iran retaliated by firing missiles and drones at US air bases in Jordan, while the United Arab Emirates said it intercepted drones from Iran. Axios reported that President Trump is weighing limited strikes against Iran to prevent it from reconstituting its radar and missile capabilities to attack ships in the Strait of Hormuz.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 486 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 65% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are lower today. The Euro Stoxx 50 fell to a 1-month low and is down -0.61%. China's Shanghai Composite fell from a 7-week high and closed down -0.16%. Japan's Nikkei-225 Stock Average closed down -0.15%.
Interest Rates
December 10-year T-notes (ZNZ6) are down -7 ticks today. The 10-year T-note yield is up +3.2 bp to 4.782%. T-notes dropped to a 1.75-year nearest-futures low today, and the 10-year T-note yield rose to a 1.75-year high of 4.796%. T-notes are under pressure from today’s +2% jump in WTI crude oil prices to a 6-week high, which boosts inflation expectations and is hawkish for Fed policy. T-notes are also being pressured by negative carryover from last Friday, when hawkish comments from Fed Chair Warsh pushed the chances of a Fed rate hike at next month’s FOMC meeting up to 65% today from 36% before he spoke.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 15-year high of 3.364% and is up +1.7 bp to 3.341%. The 10-year UK gilt yield surged to an 18-year high of 5.250% and is up +15.4 bp to 5.217%.
The Eurozone Aug CPI rose +3.3% y/y, in line with expectations and the largest increase in nearly 3 years. Aug core CPI rose +2.4% y/y, weaker than expectations of +2.5% y/y.
The Eurozone July unemployment rate was unchanged at 6.4%, showing a slightly weaker labor market than expectations of 6.3%.
The Eurozone Aug S&P manufacturing PMI was revised downward by -0.1 to 52.7 from the previously reported 52.8.
German July retail sales unexpectedly fell by -3.4% m/m, weaker than expectations of +0.5% m/m and the biggest decline in 5 years.
ECB Governing Council member Martin Kocher said, "Upside risks to inflation have increased again recently. If this picture is confirmed in the ECB's new forecast, I believe another interest rate hike will be necessary in the near future."
The UK Aug S&P manufacturing PMI was revised upward by +0.2 to 51.7 from the previously reported 51.5.
Markets are discounting a 98% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks are retreating today amid the surge in bond yields. Qualcomm (QCOM) is down more than -4%, and Marvel Technology (MRVL) and Intel (INTC) are down more than -3%. Also, Advanced Micro Devices (AMD), Applied Materials (AMAT), Analog Devices (ADI), Lam Research (LRCX), Microchip Technology (MCHP), NXP Semiconductors (NXPI), Broadcom (AVGO), KLA Corp (KLAC), Micron Technology (MU), and Texas Instruments (TXN) are down more than -2%. In addition, Nvidia (NVDA) is down more than -2% to lead losers in the Dow Jones Industrials.
Mining stocks are falling today, with the slump in gold, silver, and copper prices. Hecla Mining (HL) is down more than -4%, and Coeur Mining (CDE) is down more than -3%. Also, Newmont Corp (NEM), Anglogold Ashanti (AU), Barrick Mining (B), and Freeport-McMoRan (FCX) are down more than -2%, and Southern Copper (SCCO) is down more than -1%.
Cryptocurrency stocks are sliding today, with Bitcoin (^BTCUSD) down more than -1%. Circle Internet Group (CRCL) is down more than -69%, and Coinbase Global (COIN), Galaxy Digital Holdings (GLXY), Strategy (MSTR), Iren Ltd (IREN), MARA Holdings (MARA), and Riot Platforms (RIOT) are down more than -5%.
Cybersecurity stocks are weaker today, weighing on the broader market. Palo Alto Networks (PANW), SentinelOne (S), and Zscaler (ZS) are down more than -3%, and , CrowdStrike Holdings (CRWD) and Cloudflare (NET) are down more than +2%. Also, Okta (OKTA) and Fortinet (FTNT) are down more than -1%.
Defensive health insurance stocks are climbing today, with the slump in the broader market. Elevance Health (ELV), Centene (CNC), Humana (HUM), Cardinal Health (CAH), and CVS Health Corp (CVS) are up more than +2%. Also, UnitedHealth Group (UNH), the Cigna Group (CI), and Molina Healthcare (MOH) are up more than +1%.
Fervo Energy (FRVO) is up more than +10% on a Wall Street Journal report that said the company has signed a deal to sell power to Alphabet’s Google.
Duolingo (DUOL) is up more than +6% after Evercore ISI upgraded the stock to outperform from in line with a price target of $210.
Howmet Aerospace (HWM) is up more than +3% to lead gainers in the S&P 500 after Citigroup said Monday’s selloff in the stock was “overblown,” and maintains its buy rating on the stock.
Medtronic Plc (MDT) is up more than +2% after reporting Q1 revenue of $9.76 billion, stronger than the consensus of $9.54 billion, and raising its 2027 organic revenue forecast to +7.25% to +7.75% from a previous forecast of +6.75% to +7.25%.
Earnings Reports (9/1/2026)
Credo Technology Group Holding (CRDO), Dell Technologies Inc (DELL), Gitlab Inc (GTLB), Medtronic PLC (MDT), MongoDB Inc (MDB), Palo Alto Networks Inc (PANW).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Stocks Retreat as Global Bond Yields Surge

The Cigna Group’s CI health benefits arm, Cigna Healthcare, is linking medical and supplemental health benefits through a new connected experience designed to make cash support easier to access for costly health events. Its Medical with Smart Coverage option can be added to qualifying high-deductible health plans and may provide eligible members up to $7,000 for covered injuries, illnesses or hospitalizations.
Cigna is also rolling out Simple File Sync Plus, which automatically matches qualifying medical claims with eligible supplemental benefits, reducing paperwork and missed claims. Smart Coverage launches Jan. 1, 2027, for U.S. clients with 500 to 2,999 employees at launch, with broader availability planned for 2028.
The move targets a clear affordability gap in employer health coverage. Cigna and Ipsos found nearly 60% of Americans are not financially prepared for a health event, while 44% have spent at least $1,000 out of pocket after a diagnosis, injury or hospitalization. Fewer than one-third understand that supplemental benefits can also cover everyday costs including groceries, housing or child care.
Meanwhile, half of workers with employer-sponsored medical coverage were offered a high-deductible plan in 2024, versus 38% in 2015. Cigna says employees are more than 2.5 times likelier to enroll when supplemental benefits are available alongside them today.
The launch could strengthen Cigna’s employer offering by making high-deductible plans easier to sell and supplemental coverage easier to use. That may support client retention, new account wins and higher participation in supplemental products, creating incremental premium and fee opportunities over time.
How Are Peers Placed?
UnitedHealth Group Incorporated UNH and Elevance Health, Inc. ELV offer solutions that are similar to the connected-benefits approach. UnitedHealthcare’s Benefit Ally combines medical coverage with accident, critical-illness and hospital-indemnity benefits. For qualifying medical events, the system can automatically identify eligibility and trigger supplemental payouts, reducing or eliminating the need for employees to file separate claims. UnitedHealth also has Benefit Assist, which uses integrated medical-claims data to initiate supplemental claims. Elevance is doing something similar through Anthem. Its Whole Health Connection links Anthem medical coverage with accident, critical-illness and hospital-indemnity plans. When medical claims indicate that a member may qualify for a supplemental benefit, Anthem automatically alerts the member.
CI’s Price Performance, Valuation and Estimates
Shares of Cigna have gained 2% year to date, underperforming the broader industry’s growth of 22.1%.
From a valuation standpoint, Cigna trades at a forward price-to-earnings ratio of 8.67X, down from the industry average of 16.13X. CI carries a Value Score of A.
The Zacks Consensus Estimate for Cigna’s 2026 earnings implies 2.3% growth year over year, followed by a 9.5% improvement next year.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).

Can Cigna's Smart Coverage Help Close Health-Cost Gaps?

For Immediate Release
Chicago, IL – August 25, 2026 – Today, Zacks Equity UnitedHealth Group Inc. UNH, The Cigna Group CI, Humana Inc. HUM, Centene Corp. CNC and Molina Healthcare, Inc. MOH
Industry: HMO
Link: https://www.zacks.com/commentary/2978917/5-hmo-stocks-to-watch-amid-steady-premium-flow-increased-digitization
The U.S. health insurance industry, commonly referred to as the Health Maintenance Organization (HMO), continues to benefit from a diversified membership base, an aging population, digital transformation and strategic mergers and acquisitions (M&A). Growth in Medicare Advantage, particularly Special Needs Plans, and steady commercial and exchange enrollment should support premium flows, partly offsetting expected Medicaid membership declines amid regulatory changes.
Meanwhile, insurers are enhancing Medicare offerings and investing in home-based care, telehealth, digital tools, automation and AI to improve care delivery and operating efficiency. Strategic acquisitions should further broaden capabilities, diversify revenues and strengthen integrated healthcare platforms. Industry leaders such as UnitedHealth Group Inc., The Cigna Group, Humana Inc., Centene Corp. and Molina Healthcare, Inc. are well-positioned to capitalize on these favorable growth dynamics.
About the Industry
The Zacks HMO industry consists of entities (either private or public) that take care of subscribers’ basic and supplemental health services. Players in this space primarily assume risks and assign health and medical insurance policy premiums. Industry participants also provide administrative and managed-care services for self-funded insurance.
Services are generally offered via a network of approved care providers (called in-network), which include primary care physicians, clinical facilities, hospitals and specialists. However, out-of-network exceptions are made during emergencies or when medically necessary. Health insurance plans can be availed through private purchases, social insurance or social welfare programs.
4 Trends Shaping the Fate of the HMO Industry
Diversified Membership Mix Supports Steady Premium Flow: Membership trends across Medicare, Medicaid and other health plans remain broadly supportive for the U.S. health insurance industry, though the mix is shifting. Special Needs Plans is emerging as an increasingly important growth area within Medicare Advantage.
However, expected Medicaid membership declines resulting from growing regulatory challenges following the enactment of the One Big Beautiful Bill Act may act as a partial offset. But to add some relief, commercial employer-sponsored and individual exchange plans continue to diversify insurers' membership bases and ensure an uninterrupted flow of premiums, the most important revenue component for any health insurer.
An Aging U.S. Population: Medicare plans are specifically designed to meet the healthcare needs of individuals aged 65 and older. The aging U.S. population is steadily expanding the pool of Medicare-eligible individuals and generating higher premium revenues. As older adults generally require greater access to medical services and ongoing management of chronic conditions, insurers are enhancing Medicare Advantage offerings to provide more comprehensive and coordinated coverage.
Efforts include strengthening primary and preventive care, expanding care-management programs and offering supplemental benefits covering dental, vision, hearing, wellness and other everyday healthcare needs. These initiatives can improve care coordination and member experience, thereby paving the way for increased plan enrolment.
Digital Transformation Through Technology Investments: Digital transformation remains underway across the HMO industry as health insurers increasingly invest in technology to improve member engagement, streamline operations and enhance care delivery. Insurers are expanding digital platforms, mobile applications, telehealth capabilities and self-service tools to make healthcare services more accessible and convenient for members.
At the same time, greater use of automation, advanced analytics and Artificial Intelligence is helping insurers simplify administrative processes and improve claims management. While these investments may initially increase costs for health insurers, they should gradually enhance operating efficiency and the overall member experience, and generate more sustainable revenue growth over the long term.
Strategic M&A Strengthens Growth Opportunities: M&As continue to offer meaningful growth opportunities for the U.S. health insurance industry as insurers pursue strategic deals to broaden capabilities, strengthen geographic presence and diversify beyond traditional insurance operations. Companies are increasingly targeting assets in care delivery, pharmacy services, specialty benefits, healthcare technology and other complementary businesses that can deepen relationships with members and create additional revenue streams. Such transactions can also help insurers build more integrated healthcare platforms, expand access to services and improve operational efficiency through greater scale and technology sharing.
Zacks Industry Rank Instills Optimism
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. The Zacks Medical-HMOs industry, which is housed within the broader Zacks Medical sector, currently carries a Zacks Industry Rank #25, which places it in the top 10% of 247 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.
Before we present a few stocks that you may want to buy or retain in your portfolio, let’s look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms S&P 500, Sector
The Zacks Medical-HMO industry has gained 24% in the past year compared with the Zacks S&P 500 composite’s 21.4% growth. The Zacks Medical sector rallied 15.1% in the same time frame.
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing medical stocks, the industry trades at 15.77X compared with the S&P 500’s 20.37X and the sector’s 21.96X.
Over the past five years, the industry has traded as high as 19.64X and as low as 11.58X, with the median being at 16.13X.
5 Stocks to Keep a Close Eye On
We present five stocks from the space, either sporting a Zacks Rank #1 (Strong Buy) or #3 (Hold). Considering the current industry scenario, it might be prudent for investors to buy or retain these stocks in their portfolio, as these are well-placed to generate growth in the long haul.
You can see the complete list of today’s Zacks #1 Rank stocks here.
UnitedHealth Group: Minnesota-based UnitedHealth Group benefits from the complementary capabilities of UnitedHealthcare and Optum. UnitedHealthcare benefits from strong local-market relationships, a broad product portfolio and advanced technology. Optum’s capabilities in value-based care, population health and analytics further strengthen the company’s position across the healthcare system. Additionally, continued focus on M&As, coupled with expanding telehealth capabilities, strengthens the nationwide footprint of this Zacks Rank #1 company.
The Zacks Consensus Estimate for UnitedHealth Group’s 2026 earnings is pegged at $19.81 per share, which implies 21.2% growth from the year-ago figure. UNH’s earnings beat estimates in each of the last four quarters, the average surprise being 12.05%.
Centene: Based in Missouri, Centene serves as one of the nation’s leading Medicaid and Marketplace insurers and stand-alone PDP providers. Its businesses are further supported by numerous contract wins and steady membership expansion. Its locally focused model allows it to tailor products, provider networks and services to community needs. Investments in data-driven care and expertise in dual-eligible populations further support care coordination, affordability and member outcomes. This Zacks Rank #1 company also pursues strategic growth through acquisitions and provider partnerships. Management projects premium and service revenues within $173-$177 billion for 2026.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $4.89 per share, which more than doubled from the year-ago figure. CNC’s earnings outpaced estimates in each of the last four quarters, the average being 151.28%.
Cigna:Based in Connecticut, Cigna is aided by Evernorth Health Services and Cigna Healthcare businesses. Evernorth benefits from its comprehensive portfolio of specialty pharmacy services, while Cigna Healthcare leverages its broad customer base across both the U.S. Government and U.S. Commercial markets. Its extensive customer relationships and broad provider network support significant scale, while a modular portfolio enables solutions to be tailored to client needs. This Zacks Rank #3 company further enhances its market position and growth prospects through strategic acquisitions and partnerships with leading healthcare organizations,
The Zacks Consensus Estimate for Cigna’s 2026 earnings is pegged at $30.50 per share, indicating 2.2% growth from the prior-year figure. CI’s earnings beat estimates in each of the last four quarters, the average surprise being 2.31%.
Humana:Headquartered in Kentucky, Humana benefits from its longstanding Medicare expertise, national reach and integrated care delivery model. The company offers a diverse set of health plans across 50 states and leverages a geographically diverse membership base to broaden its provider networks. The strong execution of these programs has enabled the company to win new contracts. Its model combines insurance with CenterWell’s primary care, pharmacy and home health capabilities, supported by data analytics and value-based care arrangements. Additionally, strategic acquisitions have strengthened business diversification efforts and expanded the geographic reach of this Zacks Rank #3 company.
The Zacks Consensus Estimate for Humana’s 2026 earnings is pegged at $9.11 per share. The consensus mark for 2026 earnings has moved 1.1% north over the past 30 days. HUM’s earnings surpassed estimates in each of the last four quarters, the average surprise being 9.59%.
Molina Healthcare: This California-based health insurer benefits from its focused expertise in government-sponsored healthcare, broad presence across 21 states and established scale serving roughly 4.9 million members as of June 30, 2026. The company develops affordable Medicare and Medicaid plans, enriched with extensive benefits, which have consistently led to contract wins and a steady customer base for the Zacks Rank #3 company. Management expects premium revenue to be approximately $42 billion for 2026. The company continues to strengthen its market position through disciplined acquisitions.
The Zacks Consensus Estimate for Molina Healthcare’s 2026 earnings is pegged at $5.29 per share. The consensus mark for MOH’s 2026 earnings has moved 1.1% north over the past 30 days. MOH’s earnings beat estimates in two of the last four quarters and missed the mark twice.
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Zacks Industry Outlook UnitedHealth, The Cigna, Humana, Centene and Molina

The U.S. health insurance industry, commonly referred to as the Health Maintenance Organization (HMO), continues to benefit from a diversified membership base, an aging population, digital transformation and strategic mergers and acquisitions (M&A). Growth in Medicare Advantage, particularly Special Needs Plans, and steady commercial and exchange enrollment should support premium flows, partly offsetting expected Medicaid membership declines amid regulatory changes. Meanwhile, insurers are enhancing Medicare offerings and investing in home-based care, telehealth, digital tools, automation and AI to improve care delivery and operating efficiency. Strategic acquisitions should further broaden capabilities, diversify revenues and strengthen integrated healthcare platforms. Industry leaders such as UnitedHealth Group Incorporated UNH, The Cigna Group CI, Humana Inc. HUM, Centene Corporation CNC and Molina Healthcare, Inc. MOH are well-positioned to capitalize on these favorable growth dynamics.
About the Industry
The Zacks HMO industry consists of entities (either private or public) that take care of subscribers’ basic and supplemental health services. Players in this space primarily assume risks and assign health and medical insurance policy premiums. Industry participants also provide administrative and managed-care services for self-funded insurance. Services are generally offered via a network of approved care providers (called in-network), which include primary care physicians, clinical facilities, hospitals and specialists. However, out-of-network exceptions are made during emergencies or when medically necessary. Health insurance plans can be availed through private purchases, social insurance or social welfare programs.
4 Trends Shaping the Fate of the HMO Industry
Diversified Membership Mix Supports Steady Premium Flow: Membership trends across Medicare, Medicaid and other health plans remain broadly supportive for the U.S. health insurance industry, though the mix is shifting. Special Needs Plans is emerging as an increasingly important growth area within Medicare Advantage. However, expected Medicaid membership declines resulting from growing regulatory challenges following the enactment of the One Big Beautiful Bill Act may act as a partial offset. But to add some relief, commercial employer-sponsored and individual exchange plans continue to diversify insurers' membership bases and ensure an uninterrupted flow of premiums, the most important revenue component for any health insurer.
An Aging U.S. Population: Medicare plans are specifically designed to meet the healthcare needs of individuals aged 65 and older. The aging U.S. population is steadily expanding the pool of Medicare-eligible individuals and generating higher premium revenues. As older adults generally require greater access to medical services and ongoing management of chronic conditions, insurers are enhancing Medicare Advantage offerings to provide more comprehensive and coordinated coverage. Efforts include strengthening primary and preventive care, expanding care-management programs and offering supplemental benefits covering dental, vision, hearing, wellness and other everyday healthcare needs. These initiatives can improve care coordination and member experience, thereby paving the way for increased plan enrolment.
Digital Transformation Through Technology Investments: Digital transformation remains underway across the HMO industry as health insurers increasingly invest in technology to improve member engagement, streamline operations and enhance care delivery. Insurers are expanding digital platforms, mobile applications, telehealth capabilities and self-service tools to make healthcare services more accessible and convenient for members. At the same time, greater use of automation, advanced analytics and Artificial Intelligence is helping insurers simplify administrative processes and improve claims management. While these investments may initially increase costs for health insurers, they should gradually enhance operating efficiency and the overall member experience, and generate more sustainable revenue growth over the long term.
Strategic M&A Strengthens Growth Opportunities: M&As continue to offer meaningful growth opportunities for the U.S. health insurance industry as insurers pursue strategic deals to broaden capabilities, strengthen geographic presence and diversify beyond traditional insurance operations. Companies are increasingly targeting assets in care delivery, pharmacy services, specialty benefits, healthcare technology and other complementary businesses that can deepen relationships with members and create additional revenue streams. Such transactions can also help insurers build more integrated healthcare platforms, expand access to services and improve operational efficiency through greater scale and technology sharing.
Zacks Industry Rank Instills Optimism
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. The Zacks Medical-HMOs industry, which is housed within the broader Zacks Medical sector, currently carries a Zacks Industry Rank #25, which places it in the top 10% of 247 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.
Before we present a few stocks that you may want to buy or retain in your portfolio, let’s look at the industry’s recent stock-market performance and valuation picture.
Industry Outperforms S&P 500, Sector
The Zacks Medical-HMO industry has gained 24% in the past year compared with the Zacks S&P 500 composite’s 21.4% growth. The Zacks Medical sector rallied 15.1% in the same time frame.
One-Year Price Performance
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Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing medical stocks, the industry trades at 15.77X compared with the S&P 500’s 20.37X and the sector’s 21.96X.
Over the past five years, the industry has traded as high as 19.64X and as low as 11.58X, with the median being at 16.13X, as the chart below shows.
Forward 12-Month Price/Earnings (P/E) Ratio
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Image Source: Zacks Investment Research
5 Stocks to Keep a Close Eye On
We present five stocks from the space, either sporting a Zacks Rank #1 (Strong Buy) or #3 (Hold). Considering the current industry scenario, it might be prudent for investors to buy or retain these stocks in their portfolio, as these are well-placed to generate growth in the long haul.
You can see the complete list of today’s Zacks #1 Rank stocks here.
UnitedHealth Group: Minnesota-based UnitedHealth Group benefits from the complementary capabilities of UnitedHealthcare and Optum. UnitedHealthcare benefits from strong local-market relationships, a broad product portfolio and advanced technology. Optum’s capabilities in value-based care, population health and analytics further strengthen the company’s position across the healthcare system. Additionally, continued focus on M&As, coupled with expanding telehealth capabilities, strengthens the nationwide footprint of this Zacks Rank #1 company.
The Zacks Consensus Estimate for UnitedHealth Group’s 2026 earnings is pegged at $19.81 per share, which implies 21.2% growth from the year-ago figure. UNH’s earnings beat estimates in each of the last four quarters, the average surprise being 12.05%.
Price & Consensus: UNH
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Centene: Based in Missouri, Centene serves as one of the nation’s leading Medicaid and Marketplace insurers and stand-alone PDP providers. Its businesses are further supported by numerous contract wins and steady membership expansion. Its locally focused model allows it to tailor products, provider networks and services to community needs. Investments in data-driven care and expertise in dual-eligible populations further support care coordination, affordability and member outcomes. This Zacks Rank #1 company also pursues strategic growth through acquisitions and provider partnerships. Management projects premium and service revenues within $173-$177 billion for 2026.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $4.89 per share, which more than doubled from the year-ago figure. CNC’s earnings outpaced estimates in each of the last four quarters, the average being 151.28%.
Price & Consensus: CNC
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Cigna: Based in Connecticut, Cigna is aided by Evernorth Health Services and Cigna Healthcare businesses. Evernorth benefits from its comprehensive portfolio of specialty pharmacy services, while Cigna Healthcare leverages its broad customer base across both the U.S. Government and U.S. Commercial markets. Its extensive customer relationships and broad provider network support significant scale, while a modular portfolio enables solutions to be tailored to client needs. This Zacks Rank #3 company further enhances its market position and growth prospects through strategic acquisitions and partnerships with leading healthcare organizations,
The Zacks Consensus Estimate for Cigna’s 2026 earnings is pegged at $30.50 per share, indicating 2.2% growth from the prior-year figure. CI’s earnings beat estimates in each of the last four quarters, the average surprise being 2.31%.
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Humana: Headquartered in Kentucky, Humana benefits from its longstanding Medicare expertise, national reach and integrated care delivery model. The company offers a diverse set of health plans across 50 states and leverages a geographically diverse membership base to broaden its provider networks. The strong execution of these programs has enabled the company to win new contracts. Its model combines insurance with CenterWell’s primary care, pharmacy and home health capabilities, supported by data analytics and value-based care arrangements. Additionally, strategic acquisitions have strengthened business diversification efforts and expanded the geographic reach of this Zacks Rank #3 company.
The Zacks Consensus Estimate for Humana’s 2026 earnings is pegged at $9.11 per share. The consensus mark for 2026 earnings has moved 1.1% north over the past 30 days. HUM’s earnings surpassed estimates in each of the last four quarters, the average surprise being 9.59%.
Price & Consensus: HUM
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Molina Healthcare: This California-based health insurer benefits from its focused expertise in government-sponsored healthcare, broad presence across 21 states and established scale serving roughly 4.9 million members as of June 30, 2026. The company develops affordable Medicare and Medicaid plans, enriched with extensive benefits, which have consistently led to contract wins and a steady customer base for the Zacks Rank #3 company. Management expects premium revenue to be approximately $42 billion for 2026. The company continues to strengthen its market position through disciplined acquisitions.
The Zacks Consensus Estimate for Molina Healthcare’s 2026 earnings is pegged at $5.29 per share. The consensus mark for MOH’s 2026 earnings has moved 1.1% north over the past 30 days. MOH’s earnings beat estimates in two of the last four quarters and missed the mark twice.
Price & Consensus: MOH
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5 HMO Stocks to Watch Amid Steady Premium Flow, Increased Digitization

The Cigna Group CI continues to drive growth on the back of strong segmental performance, improving operating efficiency and shareholder-friendly moves. Its forward P/E of 8.61X is lower than the industry average of 16X.
Cigna — with a market capitalization of $73.6 billion — offers a variety of health solutions and insurance products. It operates through two main divisions: Cigna Healthcare and Evernorth Health Services. The company’s shares have gained 1.2% in the year-to-date period compared with the industry average of a 20.3% rise.
Courtesy of solid prospects, Cigna currently carries a Zacks Rank #3 (Hold) and Value Score of A.
Where Do Estimates for CI Stand?
The Zacks Consensus Estimate for Cigna’s 2026 earnings is pegged at $30.50 per share, indicating a 2.2% year-over-year rise. In the past month, it has witnessed eight upward estimate revisions against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $288.8 billion for 2026.
It beat earnings estimates in each of the past four quarters, with the average surprise being 2.3%.
Cigna Group Price, Consensus and EPS Surprise
CI’s Growth Drivers
Cigna is benefiting from strong growth in its Specialty and Care Services business, supported by rising specialty-drug utilization and faster adoption of biosimilars and specialty generics. Evernorth’s Specialty and Care Services delivered 22% year-over-year growth in pretax adjusted earnings to $1.1 billion in the second quarter of 2026. Higher generic penetration, operating efficiencies and contributions from Shields Health Solutions, which expands Cigna’s reach across hospitals and health systems, also supported the performance. In the second quarter of 2026, Evernorth Health Services’ adjusted revenues increased 6.3% year over year.
Cigna Healthcare is another key growth driver, with the U.S. employer business benefiting from strong client relationships, disciplined pricing and effective care coordination. Second-quarter adjusted revenues increased 9.1% year over year to $11.7 billion, while pretax adjusted earnings rose 17%, supported by favorable medical cost trends and continued membership growth in the employer market.
CI is also reshaping its pharmacy benefits business to create a more sustainable growth platform. Its new Signature rebate-free pharmacy model has generated early interest from health plans and employers and is expected to be introduced to Cigna Healthcare’s fully insured plans next year before a broader market launch in 2028. Pharmacy Benefit Services also achieved more than 97% client retention for 2026, while new business secured for 2027 already exceeds the combined level of the previous two selling seasons.
Technology and AI are emerging as additional levers for improving care, affordability and efficiency. Cigna’s Pharmacy Forward program is expected to halve the average time to therapy for specialty medications and reduce clinician documentation time by up to 50%. Meanwhile, expanded AI-enabled care coordination is expected to reach 20% more customers with emerging complex health needs. Customers participating in these programs have seen approximately $2,000 in annual medical-cost savings and a 42% reduction in avoidable inpatient stays.
Cigna continues to demonstrate a strong commitment to enhancing shareholder value. During the second quarter of 2026, it repurchased approximately 0.9 million shares for about $250 million. Its current dividend yield of 2.24% is higher than the industry average of 2.02%.
CI: Risks to Watch
However, there are some factors that investors should keep a careful eye on.
The company’s total benefits and expenses escalated over the last several years due to higher pharmacy and other service costs, medical costs and other benefit expenses. Total benefits and expenses witnessed a year-over-year increase of 6% in the second quarter of 2026. The persistent escalation of expenses might weigh on its margin growth. In the second quarter of 2026, the medical cost ratio deteriorated 130 bps year over year to 84.5%.
Cigna has been grappling with a significant debt level over the past several years. As of June 30, 2026, it had a long-term debt of $29.1 billion, significantly higher than the cash balance of $6.3 billion. This is likely to put pressure on the company’s interest expenses. Its net debt to capital is 32.9%, higher than the industry’s average of 18.4%.
Stocks to Consider
Some better-ranked stocks in the Medical space are BrightSpring Health Services, Inc. BTSG, Globus Medical, Inc. GMED and Centene Corporation CNC, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BrightSpring Health Services’ current-year earnings of $1.78 per share has witnessed five upward revisions in the past 30 days against no movement in the opposite direction. BTSG beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 16.1%. The consensus estimate for current-year revenues is pegged at $15.2 billion, suggesting 18.1% year-over-year growth.
The Zacks Consensus Estimate for Globus Medical’s current-year earnings of $4.93 per share has witnessed three upward revisions in the past 30 days, against no movement in the opposite direction. GMED Pharmaceuticals beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.9%. The consensus estimate for current-year revenues is pegged at $3.2 billion, suggesting 8.8% year-over-year growth.
The Zacks Consensus Estimate for Centene’s current-year earnings of $4.89 per share has witnessed one upward revision in the past seven days, against no movement in the opposite direction. CNC beat earnings estimates in each of the trailing four quarters, with an average surprise of 151.3%. The consensus estimate for current-year revenues is pegged at $196.3 billion, suggesting 0.8% year-over-year growth.
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This article originally published on Zacks Investment Research (zacks.com).