Centene Corporation operates as a healthcare enterprise that provides programs and services to under-insured and uninsured families, commercial organizations, and military families in the United States. The company operates through Medicaid, Medicare, Commercial, and Other segments. The Medicaid segment offers health plan coverage, including medicaid expansion, aged, blind, disabled, children's health insurance program, foster care, medicare-medicaid plans, long-term services and support. This segment also provides healthcare products. The Medicare segment offers special needs and medicare supplement, and prescription drug plans. The Commercial segment provides health insurance marketplace product for individual, small, and large group commercials. It also operates clinical healthcare and pharmacies, as well as offers dental and speech therapy services. In addition, the company engages in the government contracts business under the TRICARE program and other healthcare related government contracts. It provides services through primary and specialty care physicians, hospitals, and ancillary providers. Centene Corporation was founded in 1984 and is headquartered in Saint Louis, Missouri.

Centene Corporation

Elevance Health, Inc. ELV recently encountered a significant legal blow after a federal judge dismissed its challenge against the U.S. government’s Medicare Advantage star ratings. The insurer sued the Centers for Medicare & Medicaid Services (CMS), alleging that changes in rating methodology unfairly downgraded several of its plans. However, U.S. District Judge Mark Pittman in Fort Worth, TX, rejected the claim and upheld CMS’ authority to set the standards.
The financial implications for Elevance are substantial. One of its contracts was calculated at 3.749565 stars but was rounded down to 3.5 stars, just shy of the four-star threshold required for the big bonus eligibility. As a result, the company estimates it will forgo at least $375 million in bonus payments for 2025. Elevance first filed suit in October, labeling CMS’ approach “arbitrary and capricious,” but the court found no grounds to overturn the agency’s decision.
CMS issues star ratings each year to measure the quality and performance of Medicare Advantage plans. These scores are highly consequential, as they not only determine whether insurers qualify for federal bonus payments but also influence consumer perceptions and enrollment.
Also, it sets a precedent that could discourage insurers from always opting for challenging CMS in court over rating methodologies. This forces Elevance and peers to focus on operational improvements and member satisfaction rather than relying on legal remedies. For investors, the outcome highlights regulatory risks that can significantly impact revenues in the Medicare Advantage space.
Other insurers, including Centene Corporation CNC and Humana Inc. HUM, had also pursued legal challenges last year, following the methodology updates that led to rating declines.
Last December, Centene’s seven contracts were upgraded. Revised CMS scores are expected to yield Centene $200 million in bonus payments, per reports. However, Humana’s lawsuit was dismissed on procedural grounds in July 2025, and the company refiled to resuscitate its stars. The lawsuit now somewhat differs from HUM’s first one.
Elevance’s Price Performance, Valuation and Estimates
Shares of ELV have lost 16.1% in the year-to-date period compared with the industry’s growth of 0.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, Elevance trades at a forward price-to-earnings ratio of 9.72, down from the industry average of 15.25. ELV has a Value Score of A at present.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Elevance’s 2025 earnings is pegged at $30.15 per share, implying an 8.8% decline from the year-ago period.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #5 (Strong Sell).
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Elevance Shoots for the Stars But Lands at 3.5: $375M Bonus Gone?

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Core S&P 500 ETF (Symbol: IVV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $710.89 per unit.
With IVV trading at a recent price near $641.23 per unit, that means that analysts see 10.86% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IVV's underlying holdings with notable upside to their analyst target prices are Centene Corp (Symbol: CNC), Edison International (Symbol: EIX), and Agilent Technologies, Inc. (Symbol: A). Although CNC has traded at a recent price of $29.40/share, the average analyst target is 19.68% higher at $35.19/share. Similarly, EIX has 18.39% upside from the recent share price of $55.96 if the average analyst target price of $66.25/share is reached, and analysts on average are expecting A to reach a target price of $138.57/share, which is 16.34% above the recent price of $119.11. Below is a twelve month price history chart comparing the stock performance of CNC, EIX, and A:
Below is a summary table of the current analyst target prices discussed above:
Name
Symbol
Recent Price
Avg. Analyst 12-Mo. Target
% Upside to Target
iShares Core S&P 500 ETF
IVV
$641.23
$710.89
10.86%
Centene Corp
CNC
$29.40
$35.19
19.68%
Edison International
EIX
$55.96
$66.25
18.39%
Agilent Technologies, Inc.
A
$119.11
$138.57
16.34%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Analysts Expect IVV Will Reach $711

A rising proportion of elderly citizens fuels demand for Medicare plans, enabling insurers to tap into a growing senior population. Centene Corporation CNC and Humana HUM — two major managed-care providers, heavily focused on government-sponsored health insurance programs such as Medicaid and Medicare Advantage (“MA”) — are poised to benefit from this demographic tailwind.
Enacted in July 2025, the One Big Beautiful Bill Act (OBBBA) aims to simplify and digitize the U.S. healthcare payment system by consolidating medical billing and reducing administrative inefficiencies. Centene and Humana, being major players, face challenges in the form of hampered enrollment, increased administrative costs and reimbursement uncertainty. The new regulatory landscape presents opportunities like developing tailored individual products and expanding into private markets to offset potential Medicaid revenue losses.
Yet, as an investment option, which stock is more attractive? Let’s closely look at the fundamentals of these stocks.
The Case for Centene
Centene is a major player in government-sponsored healthcare, offering services across Medicaid, MA, the ACA Marketplace, Tricare and correctional health. Its scale is reinforced by a broad and growing membership base. Over the years, acquisitions such as Health Net, WellCare and Magellan Health have expanded Centene’s reach and diversified its service portfolio, providing a strong platform for long-term growth.
The company’s Marketplace segment has been a key growth driver, with membership rising 12.4% as of Dec. 31, 2024. However, profitability has come under pressure. A spike in the second-quarter health benefits ratio (HBR) forced management to sharply lower its 2025 earnings guidance to about $1.75 per share, down from the earlier projection of more than $7.00. Results were further weighed down by lower-than-anticipated 2025 risk adjustment transfers and elevated medical utilization, particularly within Medicaid and MA. Enrollment losses in these higher-margin businesses have added to the strain.
Centene’s balance sheet also reflects the costs of its acquisition-led expansion, with long-term debt of $17.6 billion as of June 30, 2025.
Looking ahead, management is focused on recovery. The company intends to reprice its Marketplace plans in 2026 to restore margins, while pursuing disciplined pricing and operational improvements to stabilize MA. These initiatives are expected to drive meaningful progress, with management targeting breakeven in MA by 2027. Despite near-term challenges, Centene’s scale and diversified operations leave it well-positioned to regain profitability and sustain growth in a competitive healthcare landscape.
The Case for Humana
Humana stands as one of the strongest players in the U.S. healthcare insurance sector, with a dominant position in MA, holding nearly 21% market share. The company continues to benefit from favorable demographics, as an aging population sustains steady demand for MA plans. As of June 30, 2025, Humana reported approximately 3.54 million MA members, with continued expansion in both Medicare Advantage and state-based programs driving premium growth.
Diversification beyond traditional insurance remains central to Humana’s strategy. Its CenterWell business—which delivers value-based primary care, pharmacy services, and home health solutions—has gained meaningful traction, enhancing long-term growth visibility and reducing dependence on insurance margins. The company is also leveraging AI-driven efficiencies, disciplined cost management and conservative guidance to strengthen operating performance and restore investor confidence.
Strategic acquisitions have further bolstered Humana’s footprint. Deals for Family Physicians Group, Your Home Advantage and Curo extended its presence in primary care and home health. The acquisition of Enclara built scale in hospice pharmacy, while iCare and Inclusa expanded Medicare and Medicaid offerings in Wisconsin. At the same time, Humana has sharpened its portfolio by divesting non-core assets, most notably by selling a 60% stake in Kindred at Home’s Hospice and Personal Care units to Clayton, Dubilier & Rice, while retaining a 40% interest to benefit from the standalone company’s long-term growth.
Supported by stabilizing medical cost trends and stronger-than-expected MA retention, Humana raised its 2025 EPS outlook to about $17 and revenues above $128 billion .
Estimates for CNC and HUM
The Zacks Consensus Estimate for CNC’s 2025 revenues implies a year-over-year increase of 16.9% while that for EPS implies a 77% decline. EPS estimates have moved 14.6% southward over the past seven days.
Image Source: Zacks Investment Research
On the other hand, the Zacks Consensus Estimate for HUM’s 2025 revenues and EPS implies a year-over-year increase of 9.3% and 4.8%, respectively. EPS estimates have moved 0.4% north over the past seven days.
Image Source: Zacks Investment Research
Are CNC and HUM Shares Expensive?
Centene is trading at a price-to-earnings multiple of 11.61, above its median of 11.18 over the last five years. Humana’s price-to-earnings multiple sits at 19.73, above its median of 17.72 over the last five years.
Image Source: Zacks Investment Research
Conclusion
Centene is expected to face notable headwinds under OBBBA, including reduced membership, tightening profit margins and rising operational costs. The company’s Medicaid business is already strained by increasing expenditures related to behavioral health, home-based care and costly medications.
Humana’s Medicaid business stands to benefit from several contract wins and renewals, which contribute to top-line growth. Despite witnessing strong, consistent performance in its Medicare business in recent quarters, the unit came under stress. With Humana deciding to exit certain unprofitable plans and counties, its individual MA membership might take a hit. Nonetheless, its growing focus on Florida is a major positive.
On the basis of return on equity (“ROE”), which reflects a company’s efficiency in generating profit from shareholders' equity as well as gives a clear picture of the company's financial health, HUM, with a ROE of 16.7%, scores higher than CNC, which has a ROE of 9.6%.
Moreover, shares of HUM have gained 13% year to date, in contrast to the industry and CNC’s decline of 31.6% and 51.8%, respectively, over the same time.
HUM, with a Zacks Rank #3 (Hold), has an edge over CNC, which carries a Zacks Rank #5 (Strong Sell).
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CNC vs. HUM: Which Managed-Care Stock is a Smarter Investment?

Elevance Health, Inc. ELV is taking a bold step in the delivery of primary care by integrating Food as Medicine into its care model. By partnering with the National Association of Community Health Centers (NACHC), the company aims to integrate nutrition into treatment plans, along with prescriptions and diagnostics. This program expands ELV’s existing regional Nourished Well initiative. Elevance Health Foundation will also support NACHC with a six-month Food as Medicine grant.
Through this collaboration, primary care teams at Community Health Centers (CHCs) will be trained to effectively screen and connect Medicaid patients with personalized nutrition support. This includes medically tailored meals, coaching and lifestyle interventions.
As CHC is serving around 34 million Americans, this program aims to reduce food and nutrition insecurities while enhancing chronic disease management and preventive health outcomes. By incorporating these services within the care processes, ELV and NACHC are breaking down barriers to access and establishing a sustainable model for achieving long-term health outcomes.
Looking ahead, ELV, NACHC and CHCs aim to serve as a scalable national model that promotes food-based clinical care by developing a Nutrition Center of Excellence. If a nutrition-focused strategy turns out to be effective, it might open the door to wider acceptance across the U.S. healthcare system. ELV’s individual medical membership rose 5.2% year over year in the second quarter of 2025 to 1.3 million. We expect the metric to rise 0.7% year over year in 2025.
How Are Competitors Faring?
Some of ELV’s competitors in the medical space are Centene Corporation CNC and The Cigna Group CI.
Centene’s high-acuity Medicaid membership grew 6.2% year over year in the second quarter of 2025. Its total membership was around 28 million as of June 30, 2025. Centene’s total revenues rose 22.4% year over year in second-quarter 2025.
Cigna reported 3.2% year-over-year growth in international health customers in the second quarter of 2025. Its total medical customers were around 18 million as of June 30, 2025. Cigna’s total revenues rose 11% year over year in the second quarter of 2025.
Elevance Health’s Price Performance, Valuation & Estimates
Shares of ELV have lost 16.1% in the year-to-date period compared with the industry’s decline of 1%.
Image Source: Zacks Investment Research
From a valuation standpoint, Elevance Health trades at a forward price-to-earnings ratio of 9.62, down from the industry average of 15.08. ELV has a Value Score of A at present.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Elevance Health’s 2025 earnings is pegged at $30.59 per share, implying a 7.4% decline from the year-ago period.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #5 (Strong Sell).
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Food as Medicine: Elevance Health & NACHC Integrate Nutrition in Care

Shares of UnitedHealth Group Incorporated UNH jumped nearly 12% last Friday after Warren Buffett's Berkshire Hathaway Inc. (BRK.B) revealed that it had snapped up a significant number of shares of the troubled health insurer. As of June 30, 2025, Berkshire had amassed more than 5 million UNH shares, a stake worth roughly $1.57 billion.
The disclosure came despite Berkshire maintaining its broader net-seller stance, marking the 11th consecutive quarter in which it sold more than it bought. That contrast underscores the significance of this investment: a classic Buffett-style contrarian bet on long-term value. When Buffett takes a stake, it sends a powerful message that he sees enduring potential, sparking a wave of copycat buying from both institutional and retail investors.
Berkshire pared back holdings in Apple, banks and telecom stocks, redirecting capital toward healthcare and infrastructure, a move that suggests a deliberate rotation into more defensive and cash-rich sectors.
For UnitedHealth, the timing is particularly notable. The company has faced a string of challenges over the past year, including a major cyberattack, the tragic killing of a senior executive, rising medical costs, two straight quarters of underwhelming earnings, a leadership shakeup and ongoing regulatory probes. Buffett’s entry signals that these issues may prove to be temporary, helping fuel the sharp rebound.
Moreover, peers such as Centene Corporation CNC and Elevance Health, Inc. ELV rose 5.8% and 4.8% last Friday, respectively, while both had cut their 2025 guidance on higher medical cost trends. This reflects investor belief that Berkshire’s move represents a potential re-rating of the sector as a whole.
Centene lowered its 2025 adjusted EPS guidance to $1.75 from the previous view of $7.25. It now expects the HBR to rise to 93.5% in the 2H 2025, a significant deterioration from the year-ago level of 89.4%. However, Centene expects its premium and service revenues to increase to around $172 billion.
Elevance now expects adjusted EPS for 2025 to be $30, lower than the previously forecasted range of $34.15-$34.85. It anticipates the benefit expense ratio to jump to 90% in 2025, up from the 2024 level of 88.5%. However, Elevance expects full-year operating cash flow at around $6 billion, up from the year-ago level of $5.8 billion.
UnitedHealth’s Price Performance, Valuation and Estimates
Shares of UNH have lost 39.9% in the year-to-date period compared with the industry’s decline of 32.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 17.48, up from the industry average of 14.55. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2025 earnings is pegged at $16.58 per share, implying a 40.1% drop from the year-ago period.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #5 (Strong Sell).
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Buffett's Shot in the Arm Sends UnitedHealth Soaring Against the Odds

Humana Inc. HUM recently partnered with health technology innovator DrFirst to unveil a program aimed at closing care gaps for patients grappling with chronic conditions such as diabetes and cardiovascular disease. The first stage of this initiative focuses on boosting statin therapy usage among eligible patients.
Because statin therapy in certain Medicare patients is linked to lower cardiovascular risk, improved outcomes and reduced costs, Humana is leveraging DrFirst’s prescription orchestration platform to engage prescribers directly within their clinical workflow. This allows Humana to send statin therapy recommendations for high-risk patients straight to providers. With a single click, providers can approve the suggestion and issue a new prescription or indicate why it may not be suitable for the patient.
DrFirst’s platform turns fragmented workflows into real-time clinical collaboration. This rules-based system enables seamless interoperability among providers, pharmacies and payers, ensuring critical patient information is shared quickly to improve care.
Humana seems prudent in selecting DrFirst, which has supported healthcare providers and patients through advanced medication management solutions for nearly three decades now. More than 350,000 prescribers, 71,000 pharmacies, 300 EHR and HIS systems, and more than 2,000 hospitals in the US and Canada use DrFirst technology to enhance workflows, improve secure communication and drive better health results.
Benefits of the Recent Move to Humana
The recent initiative reflects Humana’s sincere efforts to strengthen its longstanding ties with DrFirst. In 2015, they jointly introduced the first real-time prescription benefit tool, giving providers the ability to access patient-specific coverage details, medication costs and prior authorization requirements right at the point of prescribing.
Also, the beneficial nature of the DrFirst platform usage in the form of better health outcomes is likely to retain existing customers and attract new ones toward opting for Humana’s health care plans. Increased plan adoption is expected to expand HUM’s membership base and bring higher premium revenues to the health insurer. Premiums advanced 8.6% year over year in the first half of 2025 and total medical membership came in at 14.8 million as of June 30, 2025.
Similar to Humana, other health insurers such as UnitedHealth Group Incorporated UNH, Centene Corporation CNC and Molina Healthcare, Inc. MOH boast a strong membership base and benefit from higher premiums.
Through the UnitedHealthcare unit, UNH devises effective Medicare and Medicaid businesses as well as integrates lucrative features from time to time. These affordable plans expand the membership base and fetch growing premiums. The UnitedHealthcare business catered to 50.1 million people as of June 30, 2025, which grew 2.1% year over year. Premiums rose 12.6% year over year in the first half of 2025.
Centene’s revenue growth is underpinned by a strong membership base in its Medicaid, Medicare and Commercial Marketplace business. As of June 30, 2025, Centene’s total membership reached 28 million. Its Commercial Marketplace division exhibited strength, serving 5.9 million members as of June 30, 2025, an impressive 33.2% increase year over year. In the first half of 2025, premium and service revenues rose 17.5% compared with the prior year.
Molina Healthcare's premium revenues have experienced significant growth, fueled by the strong performance of its Medicaid and Medicare businesses. In the first half of 2025, premium revenues increased 13.4% year over year. Management anticipates 2025 premium revenues to be $42 billion. As of June 30, 2025, total membership grew 3% year over year.
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Humana, DrFirst Ties Up to Boost Statin Use in High-Risk Patients

Looking at the sectors faring best as of midday Friday, shares of Healthcare companies are outperforming other sectors, up 0.8%. Within the sector, Centene Corp (Symbol: CNC) and Moderna Inc (Symbol: MRNA) are two large stocks leading the way, showing a gain of 5.9% and 5.9%, respectively. Among healthcare ETFs, one ETF following the sector is the Health Care Select Sector SPDR ETF (Symbol: XLV), which is up 1.9% on the day, and up 0.05% year-to-date. Centene Corp, meanwhile, is down 52.94% year-to-date, and Moderna Inc, is down 32.01% year-to-date. Combined, CNC and MRNA make up approximately 0.5% of the underlying holdings of XLV.
The next best performing sector is the Energy sector, higher by 0.4%. Among large Energy stocks, Chevron Corporation (Symbol: CVX) and EQT Corp (Symbol: EQT) are the most notable, showing a gain of 1.6% and 1.6%, respectively. One ETF closely tracking Energy stocks is the Energy Select Sector SPDR ETF (XLE), which is up 0.7% in midday trading, and up 2.21% on a year-to-date basis. Chevron Corporation, meanwhile, is up 11.18% year-to-date, and EQT Corp is up 15.78% year-to-date. Combined, CVX and EQT make up approximately 21.0% of the underlying holdings of XLE.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Friday. As you can see, five sectors are up on the day, while four sectors are down.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Friday Sector Leaders: Healthcare, Energy

Elevance Health, Inc. ELV has endured a bruising 2025 so far, sliding 20.3% year to date and lagging both its industry peers and the S&P 500 Index. Shares closed Friday at $293.99, hovering just above the lower edge of their 52-week range of $273.71–$567.26. For value hunters, the stock’s current level may look like an attractive entry point into a leading health benefits player; after all, buying closer to the low than the high has its appeal, right?
Based in Indianapolis, IN, Elevance carries a market capitalization of $66.2 billion. Its peers like UnitedHealth Group Incorporated UNH and Centene Corporation CNC have also stumbled this year, in some cases even more sharply. In fact, UnitedHealth’s sheer weight in the health insurance space has dragged down the sector on multiple occasions, while Centene has also contributed to the selling pressure.
Price Performance – ELV, UNH, CNC, Industry & S&P 500
Image Source: Zacks Investment Research
What’s Dragging Down ELV Stock?
Several headwinds are hitting Elevance simultaneously. Medicaid membership has shrunk 15.1% in 2024 and another 4.1% in the first half of 2025, erasing members and the revenues they bring. Medicare Supplement and employer group risk-based memberships in the commercial business are also slipping. The situation is likely to remain choppy into 2026, especially with the GOP’s recently passed tax-and-policy package, which slashes Medicaid funding and overhauls Affordable Care Act eligibility and enrollment rules.
Meanwhile, medical costs are climbing as utilization grows, compressing margins. In the second quarter, the company’s benefit expense ratio worsened 260 basis points year over year to 88.9%. Full-year benefit expense ratio is expected at approximately 90%, with the second half likely to witness steeper jumps.
Investor sentiment soured further as management cut its full-year 2025 outlook. The company now expects adjusted EPS to be around $30, lower than the previously forecasted range of $34.15-$34.85, down from the 2024 reported figure of $33.04. Its peers, such as UnitedHealth and Centene, also lowered their expectations for the current year.
Adding to the unease, President Donald Trump’s sharp criticism of pharmacy benefit managers (PBMs) in his push to lower drug prices has put companies with PBM exposure — including Elevance, UnitedHealth and Cigna — under a regulatory and political cloud. Centene sidestepped potential trouble by exiting its PBM operations a few years ago, executing the move as part of its broader value-creation strategy.
Analysts Turn Cold for ELV
Over the past month, 2025 and 2026 earnings estimates have each seen double-digit downward revisions, 16 and 14 cuts, respectively, with no upgrades in sight. The current Zacks Consensus Estimate calls for 2025 EPS of $30.59, a 7.4% decline from the prior year, despite revenue projections implying a 12.4% gain.
The company’s earnings track record has been mixed, beating expectations twice in the past four quarters but missing twice as well, for an average surprise of negative 2.3%.
Elevance Health, Inc. Price, Consensus and EPS Surprise
ELV’s Valuation: Cheap, But for a Reason?
At a forward 12-month P/E of 9.24X, Elevance Health trades well below both its five-year median of 13.44X and the industry average of 14.32X, a valuation gap that reflects investor caution. UnitedHealth and Centene, despite suffering steeper sell-offs, command higher multiples of 14.05X and 9.94X, respectively.
Image Source: Zacks Investment Research
Why the Long Game Still Works
Despite the near-term turbulence, Elevance retains solid long-term growth levers. Product expansion, revenue diversification, rate hikes, and selective growth in commercial lines should help offset pressures. Premium increases and a sharper focus on optimizing the government business position the company to benefit from structural healthcare trends, including rising health spending, an aging population and the growing burden of chronic disease.
The company reallocates resources to more profitable areas and makes prudent acquisitions. ELV's return on invested capital of 9.36% is higher than the industry average of 5.80%, which indicates that the company is more efficient in generating returns from its capital than the industry.
Its consistent dividend payouts and stock repurchases boost shareholders' value. Elevance’s dividend yield of 2.33% is higher than the industry average of 1.37%. ELV bought back shares worth $379 million in the second quarter alone. It had a leftover capacity of roughly $8 billion under its share buyback authorization as of June 30, 2025.
To Conclude
While Elevance’s beaten-down valuation and strong long-term industry tailwinds might tempt bargain hunters, the near-term outlook remains clouded by shrinking memberships, rising medical costs, regulatory risks and deteriorating analyst sentiment. With earnings estimates moving sharply lower and the stock currently carrying a Zacks Rank #5 (Strong Sell), investors may want to stay on the sidelines until the company’s fundamentals show clearer signs of recovery.
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When a Healthcare Giant Gets Sick: Elevance Health's 20% YTD Decline

The S&P 500 Index ($SPX) (SPY) Monday closed up +0.02%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.14%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.36%. September E-mini S&P futures (ESU25) fell -0.02%, and September E-mini Nasdaq futures (NQU25) rose +0.35%.
Stock indexes on Monday settled mostly higher, with the S&P 500 and Nasdaq 100 posting new record highs. Positive trade news pushed stocks higher on Monday after the European Union (EU) and the US reached a trade deal on Sunday, which will see the EU face tariffs of 15% on most of its exports, lower than the previous threats from President Trump of tariffs as high as 50%. Stocks also rose after the South China Morning Post reported that the US and China are expected to extend their tariff truce by another 90 days from August 12, when US Treasury Secretary Bessent and Chinese Vice Premier He Lifeng meet in Stockholm.
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Stocks fell back from their best levels on Monday after poor demand for the Treasury’s $70 billion auction of 5-year T-notes pushed bond yields higher and sparked long liquidation in equities. Bond yields also rose after the Treasury raised its Q3 borrowing estimate to $1.01 trillion from an April estimate of $554 billion, which could prompt the Treasury to boost its sales of government debt securities.
Monday’s US economic news was supportive for stocks after the Jul Dallas Fed manufacturing outlook survey rose +13.6 to a 6-month high of 0.9, stronger than expectations of -9.0.
The markets this week will focus on any news of new trade deals before Friday’s deadline. On Tuesday, the Jun JOLTS job openings are expected to decline by -219,000 to 7.55 million. Also on Tuesday, the Conference Board’s US Jul consumer confidence index is expected to climb by +3.0 to 96.0. In addition, the 2-day FOMC meeting begins on Tuesday, and the Fed is expected to keep the fed funds target range unchanged at 4.25% to 4.50%. On Wednesday, the Jul ADP employment change is expected to climb by +80,000. Also on Wednesday, Q2 GDP is expected to expand by +2.4% (q/q annualized) and the Q2 core PCE price index is expected to ease to +2.3% from +3.5% in Q1. On Thursday, initial weekly unemployment claims are expected to rise by 6,000 to 223,000, and the Q2 employment cost index is expected to increase by 0.8%. Also, Jun personal spending is expected to climb +0.4% m/m and Jun personal income is expected to rise +0.3% m/m. In addition, the Jun core PCE price index, the Fed’s preferred inflation gauge, is expected to climb +0.3% m/m and +2.7% y/y. Finally, on Thursday, the Jul MNI Chicago PMI is expected to increase by +1.6 to 42.0. On Friday, Jul nonfarm payrolls are expected to increase by +109,000 and the Jul unemployment rate is expected to rise by +0.1 to 4.2%. Also, Jul average hourly earnings are expected +0.3% m/m and +3.8% y/y. In addition, the Jul ISM manufacturing index is expected to increase by +0.2 to 49.5. Finally, the University of Michigan Jul consumer sentiment index is expected to be unrevised at 61.8.
The markets are awaiting President Trump’s August 1 deadline for trade deals to avoid high tariffs. On July 16, Mr. Trump announced that he intends to send a tariff letter to more than 150 countries, notifying them that their tariff rates could be 10% or 15%, effective August 1. As an update, Mr. Trump last Wednesday said, “We’ll have a straight, simple tariff of anywhere between 15% and 50%,” an indication that the floor for tariffs is rising and suggesting that he would not go below 15%.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 3% at the Tue/Wed FOMC meeting and 63% at the following meeting on September 16-17.
This week kicks off the earnings season’s busiest week, with 38% of the stocks in the S&P 500 reporting quarterly earnings, double the amount reported last week. The earnings results of Magnificent Seven members will be front and center, with Microsoft and Meta Platforms reporting on Wednesday and Apple and Amazon.com reporting on Thursday. Early results show that S&P 500 earnings are on track to rise +4.5% for the second quarter, better than the pre-season expectations of +2.8% y/y, according to Bloomberg Intelligence. With about a third of S&P 500 firms having reported, around 82% exceeded profit estimates.
Overseas stock markets on Monday settled mixed. The Euro Stoxx 50 fell from a 2-week high and closed down -0.27%. China’s Shanghai Composite closed up +0.12%. Japan’s Nikkei Stock 225 closed down -1.10%.
Interest Rates
September 10-year T-notes (ZNU25) Monday closed down -7 ticks. The 10-year T-note yield is up +1.6 bp to 4.404%. T-notes are under pressure from today’s rally in the S&P 500 to a new record high, which reduces safe-haven demand for T-notes. Also, supply pressures are weighing on T-notes as the Treasury auctioned $69 billion of 2-year T-notes and $70 billion of 5-year T-notes on Tuesday. T-notes fell to their lows on Monday afternoon due to weak demand for the Treasury’s $70 billion auction of 5-year T-notes that had a bid-to-cover ratio of 2.31, below the 10-auction average of 2.39. Losses in T-notes were limited after the US and EU agreed on a trade deal, which eases concerns about inflation.
European government bond yields on Monday were mixed. The 10-year German bund yield fell -2.9 bp to 2.689%. The 10-year UK gilt yield rose +1.2 bp to 4.647%.
ECB Governing Council member Kazimir said the ECB shouldn’t cut interest rates in September unless there’s evidence of a major deterioration in the economy.
Swaps are discounting the chances at 17% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Chip stocks rose Monday after the EU and the US reached a trade deal. Advanced Micro Devices (AMD) closed up more than +4% to lead gainers in the Nasdaq 100. Also, On Semiconductor Corp (ON) closed up more than +3%, and KLA Corp (KLAC), ASML Holding NV (ASML), Marvell Technology (MRVL), Texas Instruments (TXN), Applied Materials (AMAT), and NXP Semiconductors NV (NXPI) closed up more than +2%. In addition, Nvidia (NVDA), Lam Research (LRCX), GlobalFoundries (GFS), Microchip Technology (MCHP), and Qualcomm (QCOM) closed up more than +1%.
Energy stocks and energy service providers rallied Monday after the price of WTI crude oil rose more than +2% to a 1-week high. Diamondback Energy (FANG) closed up more than +4% and Devon Energy (DVN) closed up more than +3%. Also, APA Corp (APA), ConocoPhillips (COP), and Phillips 66 (PSX) closed up more than +2%. In addition, Haliburton (HAL), Marathon Petroleum (MPC), Baker Hughes (BKR), Occidental Petroleum (OXY), and Valero Energy (VLO) closed up more than +1%.
LNG stocks moved higher on Monday after the EU committed to big purchases of American energy products as part of the EU-US trade deal. Venture Global (VG) closed up more than +4%, and Cheniere Energy (LNG) and EOG Resources (EOG) closed up more than +1%.
Mining stocks were under pressure Monday after gold and copper prices tumbled to 2-1/2 week lows. Newmont (NEM) closed down more than -3% and Freeport McMoRan (FCX) closed down more than -2%.
Super Micro Computer (SMCI) closed up more than +10% to lead gainers in the S&P 500 on optimism that demand for its AI servers will remain strong.
Nike (NKE) closed up more than +3% to lead gainers in the Dow Jones Industrials after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $93.
Weatherford International Plc (WFRD) closed up more than +3% after Piper Sandler upgraded the stock to overweight from neutral with a price target of $73.
Revvity (RVTY) closed down more than -8% after cutting its full-year adjusted EPS estimate to $4.85-$4.95 from a previous estimate of $4.90-$5.00, the midpoint below the consensus of $4.93.
Centene (CNC) closed down more than -5% after Cantor Fitzgerald downgraded the stock to neutral from overweight.
Coinbase Global (COIN) closed down more than -3% after Monness, Crespi, Hardt & Co. downgraded the stock to neutral from buy.
Gilead Sciences (GILD) closed down more than -2% as analysts note a potential risk to the company’s HIV preventative drugs after HHS Secretary Kennedy was reported to be planning the dismissal of an advisory panel that determines what preventive health measures insurers must cover.
Accenture Plc (ACN) closed down more than -2% after HSBC initiated coverage on the stock with a recommendation of reduce and a price target of $240.
Cisco Systems (CSCO) closed down more than -1% after Evercore ISI downgraded the stock to inline from outperform.
Earnings Reports (7/29/2025)
American Tower Corp (AMT), Arch Capital Group Ltd (ACGL), Boeing Co/The (BA), Booking Holdings Inc (BKNG), BXP Inc (BXP), Caesars Entertainment Inc (CZR), Carrier Global Corp (CARR), CBRE Group Inc (CBRE), Corning Inc (GLW), DTE Energy Co (DTE), Ecolab Inc (ECL), Electronic Arts Inc (EA), Essex Property Trust Inc (ESS), Expand Energy Corp (EXE), Hubbell Inc (HUBB), Incyte Corp (INCY), Johnson Controls International (JCI), Merck & Co Inc (MRK), Mondelez International Inc (MDLZ), Norfolk Southern Corp (NSC), PayPal Holdings Inc (PYPL), PPG Industries Inc (PPG), Procter & Gamble Co/The (PG), Regency Centers Corp (REG), Republic Services Inc (RSG), Royal Caribbean Cruises Ltd (RCL), Seagate Technology Holdings PL (STX), Stanley Black & Decker Inc (SWK), Starbucks Corp (SBUX), Sysco Corp (SYY), Teradyne Inc (TER), United Parcel Service Inc (UPS), UnitedHealth Group Inc (UNH), Visa Inc (V).
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

S&P 500 and Nasdaq 100 Post Record Highs on Trade Deals

The S&P 500 Index ($SPX) (SPY) today is up +0.08%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.02%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.34%. September E-mini S&P futures (ESU25) are up +0.04%, and September E-mini Nasdaq futures (NQU25) are up +0.31%.
Stock indexes are mostly higher, with the S&P 500 and Nasdaq 100 posting new record highs. Positive trade news is bullish for stocks after the European Union (EU) and the US reached a trade deal on Sunday, which will see the EU face tariffs of 15% on most of its exports, lower than the previous threats from President Trump of tariffs as high as 50%. Stocks also rose after the South China Morning Post reported that the US and China are expected to extend their tariff truce by another 90 days from August 12, when US Treasury Secretary Bessent and Chinese Vice Premier He Lifeng meet in Stockholm today.
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Today's US economic news was supportive for stocks after the Jul Dallas Fed manufacturing outlook survey rose +13.6 to a 6-month high of 0.9, stronger than expectations of -9.0.
The markets this week will focus on any news of new trade deals before Friday's deadline. On Tuesday, the Jun JOLTS job openings are expected to decline by -219,000 to 7.55 million. Also on Tuesday, the Conference Board's US Jul consumer confidence index is expected to climb by +3.0 to 96.0. In addition, the 2-day FOMC meeting begins on Tuesday, and the Fed is expected to keep the fed funds target range unchanged at 4.25% to 4.50%. On Wednesday, the Jul ADP employment change is expected to climb by +80,000. Also on Wednesday, Q2 GDP is expected to expand by +2.4% (q/q annualized) and the Q2 core PCE price index is expected to ease to +2.3% from +3.5% in Q1. On Thursday, initial weekly unemployment claims are expected to rise by 6,000 to 223,000, and the Q2 employment cost index is expected to increase by 0.8%. Also, Jun personal spending is expected to climb +0.4% m/m and Jun personal income is expected to rise +0.3% m/m. In addition, the Jun core PCE price index, the Fed's preferred inflation gauge, is expected to climb +0.3% m/m and +2.7% y/y. Finally, on Thursday, the Jul MNI Chicago PMI is expected to increase by +1.6 to 42.0. On Friday, Jul nonfarm payrolls are expected to increase by +109,000 and the Jul unemployment rate is expected to rise by +0.1 to 4.2%. Also, Jul average hourly earnings are expected +0.3% m/m and +3.8% y/y. In addition, the Jul ISM manufacturing index is expected to increase by +0.2 to 49.5. Finally, the University of Michigan Jul consumer sentiment index is expected to be unrevised at 61.8.
The markets are awaiting President Trump's August 1 deadline for trade deals to avoid high tariffs. On July 16, Mr. Trump announced that he intends to send a tariff letter to more than 150 countries, notifying them that their tariff rates could be 10% or 15%, effective August 1. As an update, Mr. Trump last Wednesday said, "We'll have a straight, simple tariff of anywhere between 15% and 50%," an indication that the floor for tariffs is rising and suggesting that he would not go below 15%.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 2% at the Tue/Wed FOMC meeting and 64% at the following meeting on September 16-17.
This week kicks off the earnings season's busiest week, with 38% of the stocks in the S&P 500 reporting quarterly earnings, double the amount reported last week. The earnings results of Magnificent Seven members will be front and center, with Microsoft and Meta Platforms reporting on Wednesday and Apple and Amazon.com reporting on Thursday. Early results show that S&P 500 earnings are on track to rise +4.5% for the second quarter, better than the pre-season expectations of +2.8% y/y, according to Bloomberg Intelligence. With about a third of S&P 500 firms having reported, around 82% exceeded profit estimates.
Overseas stock markets today are mixed. The Euro Stoxx 50 fell from a 2-week high and is down -0.35%. China's Shanghai Composite closed up +0.12%. Japan's Nikkei Stock 225 closed down -1.10%.
Interest Rates
September 10-year T-notes (ZNU25) today are down -4 ticks. The 10-year T-note yield is up +1.6 bp to 4.404%. T-notes are under pressure from today's rally in the S&P 500 to a new record high, which reduces safe-haven demand for T-notes. Also, supply pressures are weighing on T-notes as the Treasury will auction $69 billion of 2-year T-notes and $70 billion of 5-year T-notes later today. Losses in T-notes are limited after the US and EU agreed on a trade deal, which eases concerns about inflation.
European government bond yields today are mixed. The 10-year German bund yield is down -3.3 bp to 2.685%. The 10-year UK gilt yield is up +0.7 bp to 4.643%.
ECB Governing Council member Kazimir said the ECB shouldn't cut interest rates in September unless there's evidence of a major deterioration in the economy.
Swaps are discounting the chances at 18% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Chip stocks are climbing today after the EU and the US reached a trade deal. Advanced Micro Devices (AMD) is up more than +4% to lead gainers in the Nasdaq 100. Also, KLA Corp (KLAC) is up more than +3%, and ASML Holding NV (ASML), Texas Instruments (TXN) Applied Materials (AMAT), and On Semiconductor Corp (ON) are up more than +2%. In addition, Lam Research (LRCX), GlobalFoundries (GFS), Microchip Technology (MCHP), Marvell Technology (MRVL), Intel (INTC), and NXP Semiconductors NV (NXPI) are up more than +1%.
Energy stocks and energy service providers are higher today with the price of WTI crude oil up more than +2% to a 1-week high. Devon Energy (DVN), APA Corp (APA), ConocoPhillips (COP), and Diamondback Energy (FANG) are up more than +2%. Also, Exxon Mobil (XOM), Haliburton (HAL), Phillips 66 (PSX), Marathon Petroleum (MPC), Baker Hughes (BKR), Occidental Petroleum (OXY), and Valero Energy (VLO) are up more than +1%.
LNG stocks are moving higher after the EU committed to big purchases of American energy products as part of the EU-US trade deal. Cheniere Energy (LNG), EOG Resources (EOG), and Venture Global (VG) are up more than +1%.
Mining stocks are under pressure today after gold and copper prices tumbled to 2-1/2 week lows. Newmont (NEM) is down more than -3% and Freeport McMoRan (FCX) is down more than -2%.
Super Micro Computer (SMCI) is up more than +7% to lead gainers in the S&P 500 on optimism that demand for its AI servers will remain strong.
Nike (NKE) is up more than +4% to lead gainers in the Dow Jones Industrials after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $93.
Weatherford International Plc (WFRD) is up more than +3% after Piper Sandler upgraded the stock to overweight from neutral with a price target of $73.
Revvity (RVTY) is down more than -9% to lead losers in the S&P 500 after cutting its full-year adjusted EPS estimate to $4.85-$4.95 from a previous estimate of $4.90-$5.00, the midpoint below the consensus of $4.93.
Gilead Sciences (GILD) is down more than -2% to lead losers in the Nasdaq 100 as analysts note a potential risk to the company's HIV preventative drugs after HHS Secretary Kennedy was reported to be planning the dismissal of an advisory panel that determines what preventive health measures insurers must cover.
Cisco Systems (CSCO) is down more than -1% to lead losers in the Dow Jones Industrials after Evercore ISI downgraded the stock to inline from outperform.
Centene (CNC) is down more than -2% after Cantor Fitzgerald downgraded the stock to neutral from overweight,
Accenture Plc (ACN) is down more than -2% after HSBC initiated coverage on the stock with a recommendation of reduce and a price target of $240.
Riot Platforms (RIOT) is down more than -2% after JPMorgan Chase downgraded the stock to neutral from overweight.
Earnings Reports (7/28/2025)
Amkor Technology Inc (AMKR), Brixmor Property Group Inc (BRX), Brown & Brown Inc (BRO), Cadence Design Systems Inc (CDNS), Cincinnati Financial Corp (CINF), Crane Co (CR), Exelixis Inc (EXEL), Hartford Insurance Group Inc/The (HIG), Kilroy Realty Corp (KRC), NOV Inc (NOV), Nucor Corp (NUE), Olin Corp (OLN), Principal Financial Group Inc (PFG), Revvity Inc (RVTY), Rithm Capital Corp (RITM), Simpson Manufacturing Co Inc (SSD), Universal Health Services Inc (UHS), Veralto Corp (VLTO), Waste Management Inc (WM), Welltower Inc (WELL), Western Union Co/The (WU), Whirlpool Corp (WHR), Woodward Inc (WWD).
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.