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.

Анализ фундаментальных метрик Centene Corporation демонстрирует значительные риски для инвесторов. Мультипликаторы, такие как P/E и P/S, находятся значительно ниже медианных значений в отрасли, что указывает на потенциальную недооцененность, однако это также может свидетельствовать о проблемах с прибыльностью. ROE, ROA и маржи показывают нулевые значения, что вызывает беспокойство о финансовой устойчивости компании. Долговая нагрузка выше медианы, что увеличивает риски, связанные с обслуживанием долга. Прогнозируемая EPS также значительно ниже отраслевых норм, что создает неопределенность в отношении будущих доходов. Хотя выручка демонстрирует положительную динамику, другие показатели, такие как чистая прибыль и операционная прибыль, остаются на нулевом уровне. Общая финансовая картина указывает на значительные проблемы, что может негативно сказаться на оценке компании в будущем.

Centene Corporation

For Immediate Release
Chicago, IL – March 12, 2026 – Today, Zacks Equity Research discusses Universal Health Services, Inc. UHS. Despite these hurdles, HMO companies like UnitedHealth Group Inc. UNH, The Cigna Group CI, Humana Inc. HUM and Centene Corp. CNC
Industry: HMO
Link: https://www.zacks.com/commentary/2882336/4-hmo-stocks-to-watch-despite-escalating-costs-nursing-shortage
The U.S. health insurance industry, referred to as Health Maintenance Organization (HMO), is leveraging technological innovation and pursuing mergers and acquisitions (M&A) to expand capabilities, enter new markets and broaden its member base. With the Federal Reserve implementing three interest rate cuts in 2025 and borrowing costs expected to remain relatively lower, insurers may find it easier to finance acquisitions, potentially supporting further industry consolidation. However, regulatory changes could tighten Medicaid eligibility and reduce ACA enrollment, affecting membership and reimbursements.
Medical expenses are rising due to the return of deferred care, increased chronic disease management and surging costs of specialty drugs like biologics and cancer therapies. Such rising costs are also weighing on companies across other industries of the broader Zacks Medical sector, such as Universal Health Services, Inc.. Despite these hurdles, HMO companies like UnitedHealth Group Inc., The Cigna Group, Humana Inc. and Centene Corp. appear well-placed to counter industry headwinds.
About the Industry
The Zacks HMO industry consists of entities (either private or public) that take care of subscribers’ basic and supplemental health services. Companies in this space primarily assume risks and assign premiums to health and medical insurance policies. Industry participants also provide administrative and managed-care services for self-funded insurance.
Services are generally offered by 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 necessary. Health insurance plans can be availed through private purchases, social insurance or social welfare programs.
4 Trends Defining the HMO Industry's Future
Escalating Medical Expenses: Healthcare costs for U.S. health insurers are increasing due to several factors. The resumption of previously delayed medical procedures, along with greater demand for routine screenings and chronic disease management, has led to increased healthcare utilization and a rise in insurance claims. The growing use of expensive prescription drugs has also contributed to higher spending.
In addition, demographic shifts, such as a rapidly aging population, are increasing demand for healthcare services. The rising prevalence of chronic diseases such as diabetes, obesity and cardiovascular conditions further adds to long-term treatment costs. As a result, the Health Benefit Ratio (a key measure of insurer profitability) has come under strain, leading to tighter profit margins.
Regulatory Hurdles: Health insurers in the domestic market are navigating a period of heightened regulatory uncertainty. The One Big Beautiful Bill Act aims to make significant changes to healthcare programs such as Medicaid, Medicare, and Affordable Care Act (ACA) marketplaces. The changes incorporate new Medicaid work requirements, stricter eligibility checks and reduced federal funding for some safety-net programs.
The tighter eligibility and lack of subsidy extensions mean a drop in enrollment for insurers. Health insurers are under pressure, as lower Medicaid and Medicare reimbursements could strain already narrow margins. Because commercial insurance products generally generate higher margins than Medicaid or ACA plans, insurers are increasingly focusing on expanding their commercial offerings. Nevertheless, the expected Medicare Advantage rate increases in 2026 could offer some relief.
Scarcity of Healthcare Professionals: The ongoing nationwide shortage of nurses and other healthcare professionals continues to strain hospital operations, especially as patient volumes rise. An aging nursing workforce, increasing levels of burnout and an uneven distribution of healthcare staff across regions have collectively contributed to the shortage. HMOs work closely with hospitals, physicians and other healthcare providers to ensure their members receive efficient and cost-effective care.
The consistency and quality of these services are crucial for maintaining customer satisfaction and encouraging the renewal of health plans. However, a declining nursing workforce may hinder hospitals’ ability to provide high-quality care, which can ultimately affect customer retention for HMO providers.
Strategic Emphasis on M&A: Alongside adopting technological innovations, HMOs often pursue mergers and acquisitions (M&A) to broaden their capabilities, enter new markets, strengthen their position in existing regions, expand their member base and enhance their nationwide presence. These strategic initiatives also support diversification, helping companies sustain a competitive advantage over peers.
With the Federal Reserve implementing three interest rate cuts in 2025, chances remain of further rate hikes in 2026. This means that borrowing costs are expected to decline, which, in turn, is likely to fuel M&A activity as industry participants can access financing at lower costs.
Zacks Industry Rank Indicates Bearish Outlook
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates tepid near-term prospects. The Zacks Medical-HMOs industry is housed within the broader Zacks Medical sector. It currently carries a Zacks Industry Rank #224, which places it in the bottom 8% of 243 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 bottom 50% of the Zacks-ranked industries is a result of the negative earnings outlook for the constituent companies in aggregate.
Despite the dismal scenario, we will present a few stocks that one can retain, given their solid growth endeavors. But before that, it is worth looking at the industry’s recent stock-market performance and the valuation picture.
Industry Underperforms S&P 500, Sector
The Zacks Medical-HMO industry has declined 35.6% in the past year against the Zacks S&P 500 composite’s 24.4% growth. The Zacks Medical sector inched up 1.6% in the same time frame.
Industry's Current Valuation
On the basis of the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing medical stocks, the industry is trading at 13.71X compared with the S&P 500’s 22.01X and the sector’s 20.66X.
In the past five years, the industry has traded as high as 19.57X and as low as 11.58X, the median being 16.19X.
4 Stocks to Watch
We present four stocks from the space with a current Zacks Rank #3 (Hold). Considering the present industry scenario, it might be prudent for investors to retain these stocks in their portfolios, as these are well-placed to generate growth in the long haul.
UnitedHealth Group: Minnesota-based UnitedHealth Group’s revenue growth is supported by the strong performance of its UnitedHealthcare and Optum segments. The UnitedHealthcare division continues to benefit from enhanced Medicare and Medicaid offerings that combine affordability with appealing benefits, helping to expand its membership base and increase premium revenues. Optum’s expansion is driven by strategic acquisitions, the use of advanced technology and data-driven healthcare models.
The Zacks Consensus Estimate for UnitedHealth Group’s 2026 earnings is pegged at $17.70 per share, which implies 8.3% growth from the year-ago figure. UNH’s earnings beat estimates in two of the last four quarters and missed the mark twice, the average negative surprise being 2.38%.
Cigna: Based in Connecticut, the company continues to thrive on the solid performance of its two growth platforms—Evernorth and Cigna Healthcare. Evernorth is strengthened by its extensive range of specialty pharmacy solutions, while Cigna Healthcare benefits from a wide customer base across its U.S. Government and U.S. Commercial divisions. The health insurer broadens its product portfolio and accelerates growth through strategic acquisitions and collaborations.
The Zacks Consensus Estimate for Cigna’s 2026 earnings is pegged at $30.29 per share, indicating 1.5% growth from the prior-year figure. CI’s earnings surpassed estimates in each of the last four quarters, the average surprise being 2.67%.
Humana:Headquartered in Kentucky, Humana has achieved consistent growth, supported by higher premium revenues and a strong membership base across its Medicare and Medicaid businesses. The solid performance of these plans has enabled the company to secure several new contracts and renew existing agreements with federal and state agencies. Through its CenterWell brand, Humana remains focused on addressing the healthcare needs of the country’s aging population. In addition, the company has undertaken strategic acquisitions, including Family Physicians Group, iCare and Inclusa.
The Zacks Consensus Estimate for Humana’s 2026 earnings is pegged at $9.82 per share. The consensus mark for 2026 revenues implies 22.8% growth from the 2025 figure. HUM’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average being 6.96%.
Centene: Missouri-based Centene’s revenue growth is driven by strong performance in its Medicare and Medicaid businesses, contributing to increased contract wins and expanding membership. The ongoing inclination for Medicare Advantage plans among the aging U.S. population continues to fuel consistent demand for Centene’s Medicare offerings. The company pursues an inorganic growth strategy and enters into strategic acquisitions and partnerships with healthcare providers to broaden its capabilities, diversify its service portfolio and reinforce its presence across the country.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $3.01 per share, which indicates a 44.7% rise from the year-ago figure. CNC’s earnings outpaced estimates in three of the last four quarters and missed the mark once, the average being 60.56%.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Highlights UnitedHealth, The Cigna, Humana and Centene

The U.S. health insurance industry, referred to as Health Maintenance Organization (HMO), is leveraging technological innovation and pursuing mergers and acquisitions (M&A) to expand capabilities, enter new markets and broaden its member base. With the Federal Reserve implementing three interest rate cuts in 2025 and borrowing costs expected to remain relatively lower, insurers may find it easier to finance acquisitions, potentially supporting further industry consolidation. However, regulatory changes could tighten Medicaid eligibility and reduce ACA enrollment, affecting membership and reimbursements.
Medical expenses are rising due to the return of deferred care, increased chronic disease management and surging costs of specialty drugs like biologics and cancer therapies. Such rising costs are also weighing on companies across other industries of the broader Zacks Medical sector, such as Universal Health Services, Inc. UHS. Despite these hurdles, HMO companies like UnitedHealth Group Incorporated UNH, The Cigna Group CI, Humana Inc. HUM and Centene Corporation CNC appear well-placed to counter industry headwinds.
About the Industry
The Zacks HMO industry consists of entities (either private or public) that take care of subscribers’ basic and supplemental health services. Companies in this space primarily assume risks and assign premiums to health and medical insurance policies. Industry participants also provide administrative and managed-care services for self-funded insurance. Services are generally offered by 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 necessary. Health insurance plans can be availed through private purchases, social insurance or social welfare programs.
4 Trends Defining the HMO Industry's Future
Escalating Medical Expenses: Healthcare costs for U.S. health insurers are increasing due to several factors. The resumption of previously delayed medical procedures, along with greater demand for routine screenings and chronic disease management, has led to increased healthcare utilization and a rise in insurance claims. The growing use of expensive prescription drugs has also contributed to higher spending. In addition, demographic shifts, such as a rapidly aging population, are increasing demand for healthcare services. The rising prevalence of chronic diseases such as diabetes, obesity and cardiovascular conditions further adds to long-term treatment costs. As a result, the Health Benefit Ratio (a key measure of insurer profitability) has come under strain, leading to tighter profit margins.
Regulatory Hurdles: Health insurers in the domestic market are navigating a period of heightened regulatory uncertainty. The One Big Beautiful Bill Act aims to make significant changes to healthcare programs such as Medicaid, Medicare, and Affordable Care Act (ACA) marketplaces. The changes incorporate new Medicaid work requirements, stricter eligibility checks and reduced federal funding for some safety-net programs. The tighter eligibility and lack of subsidy extensions mean a drop in enrollment for insurers. Health insurers are under pressure, as lower Medicaid and Medicare reimbursements could strain already narrow margins. Because commercial insurance products generally generate higher margins than Medicaid or ACA plans, insurers are increasingly focusing on expanding their commercial offerings. Nevertheless, the expected Medicare Advantage rate increases in 2026 could offer some relief.
Scarcity of Healthcare Professionals: The ongoing nationwide shortage of nurses and other healthcare professionals continues to strain hospital operations, especially as patient volumes rise. An aging nursing workforce, increasing levels of burnout and an uneven distribution of healthcare staff across regions have collectively contributed to the shortage. HMOs work closely with hospitals, physicians and other healthcare providers to ensure their members receive efficient and cost-effective care. The consistency and quality of these services are crucial for maintaining customer satisfaction and encouraging the renewal of health plans. However, a declining nursing workforce may hinder hospitals’ ability to provide high-quality care, which can ultimately affect customer retention for HMO providers.
Strategic Emphasis on M&A: Alongside adopting technological innovations, HMOs often pursue mergers and acquisitions (M&A) to broaden their capabilities, enter new markets, strengthen their position in existing regions, expand their member base and enhance their nationwide presence. These strategic initiatives also support diversification, helping companies sustain a competitive advantage over peers. With the Federal Reserve implementing three interest rate cuts in 2025, chances remain of further rate hikes in 2026. This means that borrowing costs are expected to decline, which, in turn, is likely to fuel M&A activity as industry participants can access financing at lower costs.
Zacks Industry Rank Indicates Bearish Outlook
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates tepid near-term prospects. The Zacks Medical-HMOs industry is housed within the broader Zacks Medical sector. It currently carries a Zacks Industry Rank #224, which places it in the bottom 8% of 243 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 bottom 50% of the Zacks-ranked industries is a result of the negative earnings outlook for the constituent companies in aggregate.
Despite the dismal scenario, we will present a few stocks that one can retain, given their solid growth endeavors. But before that, it is worth looking at the industry’s recent stock-market performance and the valuation picture.
Industry Underperforms S&P 500, Sector
The Zacks Medical-HMO industry has declined 35.6% in the past year against the Zacks S&P 500 composite’s 24.4% growth. The Zacks Medical sector inched up 1.6% in the same time frame.
One-Year Price Performance
Image Source: Zacks Investment Research
Industry's Current Valuation
On the basis of the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing medical stocks, the industry is trading at 13.71X compared with the S&P 500’s 22.01X and the sector’s 20.66X.
In the past five years, the industry has traded as high as 19.57X and as low as 11.58X, the median being 16.19X, as the chart below shows.
Forward 12-Month Price/Earnings (P/E) Ratio
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
4 Stocks to Watch
We present four stocks from the space with a current Zacks Rank #3 (Hold). Considering the present industry scenario, it might be prudent for investors to retain these stocks in their portfolios, as these are well-placed to generate growth in the long haul.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth Group: Minnesota-based UnitedHealth Group’s revenue growth is supported by the strong performance of its UnitedHealthcare and Optum segments. The UnitedHealthcare division continues to benefit from enhanced Medicare and Medicaid offerings that combine affordability with appealing benefits, helping to expand its membership base and increase premium revenues. Optum’s expansion is driven by strategic acquisitions, the use of advanced technology and data-driven healthcare models.
The Zacks Consensus Estimate for UnitedHealth Group’s 2026 earnings is pegged at $17.70 per share, which implies 8.3% growth from the year-ago figure. UNH’s earnings beat estimates in two of the last four quarters and missed the mark twice, the average negative surprise being 2.38%.
Price & Consensus: UNH
Image Source: Zacks Investment Research
Cigna: Based in Connecticut, the company continues to thrive on the solid performance of its two growth platforms—Evernorth and Cigna Healthcare. Evernorth is strengthened by its extensive range of specialty pharmacy solutions, while Cigna Healthcare benefits from a wide customer base across its U.S. Government and U.S. Commercial divisions. The health insurer broadens its product portfolio and accelerates growth through strategic acquisitions and collaborations.
The Zacks Consensus Estimate for Cigna’s 2026 earnings is pegged at $30.29 per share, indicating 1.5% growth from the prior-year figure. CI’s earnings surpassed estimates in each of the last four quarters, the average surprise being 2.67%.
Price & Consensus: CI
Image Source: Zacks Investment Research
Humana: Headquartered in Kentucky, Humana has achieved consistent growth, supported by higher premium revenues and a strong membership base across its Medicare and Medicaid businesses. The solid performance of these plans has enabled the company to secure several new contracts and renew existing agreements with federal and state agencies. Through its CenterWell brand, Humana remains focused on addressing the healthcare needs of the country’s aging population. In addition, the company has undertaken strategic acquisitions, including Family Physicians Group, iCare and Inclusa.
The Zacks Consensus Estimate for Humana’s 2026 earnings is pegged at $9.82 per share. The consensus mark for 2026 revenues implies 22.8% growth from the 2025 figure. HUM’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average being 6.96%.
Price & Consensus: HUM
Image Source: Zacks Investment Research
Centene: Missouri-based Centene’s revenue growth is driven by strong performance in its Medicare and Medicaid businesses, contributing to increased contract wins and expanding membership. The ongoing inclination for Medicare Advantage plans among the aging U.S. population continues to fuel consistent demand for Centene’s Medicare offerings. The company pursues an inorganic growth strategy and enters into strategic acquisitions and partnerships with healthcare providers to broaden its capabilities, diversify its service portfolio and reinforce its presence across the country.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $3.01 per share, which indicates a 44.7% rise from the year-ago figure. CNC’s earnings outpaced estimates in three of the last four quarters and missed the mark once, the average being 60.56%.
Price & Consensus: CNC
Image Source: Zacks Investment Research
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4 HMO Stocks to Watch Despite Escalating Costs, Nursing Shortage

In trading on Tuesday, shares of Centene Corp (Symbol: CNC) crossed below their 200 day moving average of $38.90, changing hands as low as $36.69 per share. Centene Corp shares are currently trading down about 14.6% on the day. The chart below shows the one year performance of CNC shares, versus its 200 day moving average:
Looking at the chart above, CNC's low point in its 52 week range is $25.075 per share, with $66.03 as the 52 week high point — that compares with a last trade of $36.84. The CNC DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
Also see:
BABA Dividend History
BZQ Split History
NNDM Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

CNC Crosses Below Key Moving Average Level

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Centene Corp (Symbol: CNC), where a total volume of 32,950 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 67.4% of CNC's average daily trading volume over the past month, of 4.9 million shares. Especially high volume was seen for the $30 strike put option expiring April 10, 2026, with 19,999 contracts trading so far today, representing approximately 2.0 million underlying shares of CNC. Below is a chart showing CNC's trailing twelve month trading history, with the $30 strike highlighted in orange:
Bio-Techne Corp (Symbol: TECH) options are showing a volume of 15,116 contracts thus far today. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 62.4% of TECH's average daily trading volume over the past month, of 2.4 million shares. Especially high volume was seen for the $60 strike call option expiring April 17, 2026, with 5,055 contracts trading so far today, representing approximately 505,500 underlying shares of TECH. Below is a chart showing TECH's trailing twelve month trading history, with the $60 strike highlighted in orange:
And UnitedHealth Group Inc (Symbol: UNH) saw options trading volume of 39,170 contracts, representing approximately 3.9 million underlying shares or approximately 47.5% of UNH's average daily trading volume over the past month, of 8.3 million shares. Especially high volume was seen for the $300 strike call option expiring April 17, 2026, with 2,172 contracts trading so far today, representing approximately 217,200 underlying shares of UNH. Below is a chart showing UNH's trailing twelve month trading history, with the $300 strike highlighted in orange:
For the various different available expirations for CNC options, TECH options, or UNH options, visit StockOptionsChannel.com.
Also see:
ETFs Holding TSEM
Top Ten Hedge Funds Holding ECNS
Institutional Holders of WLY
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Tuesday Option Activity: CNC, TECH, UNH

In afternoon trading on Tuesday, Energy stocks are the worst performing sector, showing a 1.1% loss. Within that group, Occidental Petroleum Corp (Symbol: OXY) and Diamondback Energy, Inc. (Symbol: FANG) are two of the day's laggards, showing a loss of 4.2% and 2.9%, respectively. Among energy ETFs, one ETF following the sector is the Energy Select Sector SPDR ETF (Symbol: XLE), which is down 1.3% on the day, and up 24.29% year-to-date. Occidental Petroleum Corp, meanwhile, is up 27.63% year-to-date, and Diamondback Energy, Inc. is up 18.85% year-to-date. Combined, OXY and FANG make up approximately 4.1% of the underlying holdings of XLE.
The next worst performing sector is the Healthcare sector, showing a 0.5% loss. Among large Healthcare stocks, Centene Corp (Symbol: CNC) and West Pharmaceutical Services, Inc. (Symbol: WST) are the most notable, showing a loss of 13.8% and 6.4%, respectively. One ETF closely tracking Healthcare stocks is the Health Care Select Sector SPDR ETF (XLV), which is up 0.1% in midday trading, and down 0.29% on a year-to-date basis. Centene Corp, meanwhile, is down 9.31% year-to-date, and West Pharmaceutical Services, Inc., is down 15.56% year-to-date. Combined, CNC and WST make up approximately 0.6% of the underlying holdings of XLV.
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 Tuesday. As you can see, six sectors are up on the day, while three sectors are down.
Technology & Communications
+0.4%
Also see:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tuesday Sector Laggards: Energy, Healthcare

In early trading on Tuesday, shares of Vertex Pharmaceuticals, topped the list of the day's best performing components of the S&P 500 index, trading up 7.8%. Year to date, Vertex Pharmaceuticals, registers a 9.5% gain.
And the worst performing S&P 500 component thus far on the day is Centene, trading down 7.7%. Centene is lower by about 2.8% looking at the year to date performance.
Two other components making moves today are West Pharmaceutical Services, trading down 7.7%, and Western Digital, trading up 5.6% on the day.
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 Movers: CNC, VRTX

UnitedHealth Group Incorporated UNH continues to go through a turbulent phase while navigating rising medical costs, regulatory scrutiny and shifting industry dynamics. For investors accustomed to UnitedHealth’s consistent growth trajectory, the continued weakness has raised an important question: Are there deeper structural concerns, or is it simply a temporary setback for one of healthcare’s largest platforms?
The latest labor market data has added another layer of uncertainty. Healthcare employment unexpectedly declined in February, highlighting stress points within a sector that has historically been a reliable source of job creation. While the data does not directly determine insurer performance, it underscores the evolving landscape in which UnitedHealth operates. At the same time, the company’s stock has softened in recent months, reflecting a mix of macroeconomic volatility and company-specific pressures.
Healthcare Hiring Slowdown Adds to Sector Concerns
The U.S. healthcare industry rarely experiences employment contractions, making February’s decline notable. According to the U.S. Bureau of Labor Statistics, the broader economy shed more than 92,000 jobs during the month, including roughly 28,000 positions in healthcare. A strike involving workers at Kaiser Permanente played a major role in the decline. Even so, the data signals mounting pressure across healthcare systems, many of which are grappling with reimbursement challenges and evolving care models.
The national unemployment rate ticked up to 4.4% compared with 4.3% recorded in January. For health insurers, these dynamics can ultimately influence claims patterns, provider pricing and overall cost structures.
Market Rotation and Stock Weakness
UnitedHealth’s recent share decline has unfolded against a backdrop of shifting market leadership. Over the past three months, the stock has dropped 12.8%, underperforming the broader industry’s 10.1% decline. Some competitors have fared differently. Shares of Molina Healthcare, Inc. MOH have slipped roughly 10% over the same period, while Centene Corporation CNC has climbed nearly 13%. Meanwhile, the S&P 500 has declined about 2.5%.
Price Performance – UNH, MOH, CNC, Industry & S&P 500
Image Source: Zacks Investment Research
Part of UnitedHealth’s weakness reflects a broader investor rotation toward high-growth technology companies tied to artificial intelligence. As capital flows toward these themes, traditionally defensive sectors like healthcare have temporarily taken a back seat.
Geopolitical developments have also added to market volatility. Rising tensions involving Iran have contributed to higher energy prices and renewed inflation concerns, prompting investors to rebalance portfolios toward sectors expected to have stronger near-term momentum.
Operational Headwinds Come Into Focus
Beyond macro forces, UnitedHealth is confronting several internal challenges. One key metric illustrating the pressure is the company’s adjusted medical care ratio (MCR), which rose to 88.9% in 2025, representing a deterioration of 340 basis points from the previous year. The increase reflects higher utilization of healthcare services, particularly among seniors enrolled in government-supported programs.
Legal and regulatory scrutiny has also intensified. The U.S. Department of Justice is examining aspects of the company’s Medicare billing practices and the competitive conduct of Optum Rx, its pharmacy benefit management division. Such investigations increase headline risk and may result in additional compliance costs or operational changes.
The aftermath of the 2024 cyberattack involving Change Healthcare remains another source of uncertainty. Questions surrounding financial assistance to healthcare providers affected by the incident continue to draw regulatory attention.
Operational trends also reveal some softness in membership. The company expects total medical enrollment to range between 46.945 million and 47.495 million in 2026, down from 49.760 million in 2025. Declines are expected across several segments, including commercial risk plans, Medicare Advantage and Medicaid programs.
Adding to the pressure, federal regulators proposed only a modest 0.09% increase in Medicare Advantage payment rates for 2027. Given that Medicare Advantage represents a substantial share of UnitedHealthcare’s revenue base, reimbursement decisions are expected to affect profitability.
Structural Strengths Remain Intact
Despite these challenges, the company’s long-term strategic position remains intact. UnitedHealth operates one of the most comprehensive healthcare ecosystems in the industry, combining insurance operations with a broad healthcare services platform through Optum.
This integrated model enables the company to operate across multiple parts of the healthcare value chain, including insurance coverage, pharmacy benefit management, data analytics and direct care delivery. By coordinating services across these areas, UNH is expected to manage costs more effectively.
Capital distribution also remains disciplined. In 2025, the company returned nearly $7.9 billion to its shareholders through dividends and repurchased approximately $5.5 billion of stock. Management plans $2.5 billion in buybacks and about $8 billion in dividend payments for 2026 while maintaining balance-sheet flexibility.
Long-term demographic trends further reinforce UNH’s outlook. An aging population and rising prevalence of chronic diseases are expected to drive sustained demand for healthcare services and insurance coverage, particularly within government-supported programs serving senior citizens.
Where Do the Estimates Stand?
The Zacks Consensus Estimate for 2026 EPS is pegged at $17.70, indicating an 8.3% year-over-year improvement. The consensus estimate for revenues is pegged at $440.4 billion, implying a 1.6% decline from a year ago.
For 2027, EPS is projected to grow to $19.83, marking a 12.1% improvement. It has witnessed one upward estimate revision in the past month, against no downward movements. Revenues are pegged at $457.5 billion, 3.9% growth from a year ago.
Over the past four quarters, the company has missed estimates twice and beat twice, producing an average earnings surprise of negative 2.4%.
UnitedHealth Group Incorporated Price, Consensus and EPS Surprise
UNH’s Valuation
The continued selloff has pushed valuation below the historical average. The stock now trades at a forward price-to-earnings (P/E) ratio of 15.84X, below its five-year median of 19.29X. However, it is still above the industry average of 13.81X. In comparison, Molina and Centene are currently trading at 18.88X and 13.66X, respectively.
Image Source: Zacks Investment Research
Conclusion
UnitedHealth’s recent decline reflects a convergence of sector pressures, regulatory scrutiny and shifting market sentiment. Rising medical utilization, reimbursement uncertainty and membership softness are real challenges that could weigh on near-term performance. The recent decline in healthcare employment, although significantly influenced by temporary disruptions, adds another signal that the sector is entering a more complex operating phase.
At the same time, the company’s diversified healthcare platform, strong capital allocation and exposure to long-term demographic tailwinds continue to support its strategic positioning. The pullback in valuation suggests that some of the risks are already reflected in the share price. While the long-term outlook remains intact, near-term uncertainty argues for a more cautious stance. As a result, the stock presently 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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Healthcare Jobs Drop, UnitedHealth Stock Slips: Opportunity or Risk?

In trading on Tuesday, cigarettes & tobacco shares were relative laggards, down on the day by about 1.9%. Helping drag down the group were shares of Ispire Technology, down about 10.2% and shares of Universal off about 0.6% on the day.
Also lagging the market Tuesday are hospital & medical practitioners shares, down on the day by about 1.2% as a group, led down by AdaptHealth, trading lower by about 13.6% and Centene, trading lower by about 3.5%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tuesday Sector Laggards: Cigarettes & Tobacco, Hospital & Medical Practitioners

UnitedHealth Group Incorporated’s UNH health benefits arm, UnitedHealthcare, remains the company’s primary revenue engine, yet profitability pressures continue to weigh on investor sentiment. Although the segment’s revenues climbed 15.7% in 2025 to $344.9 billion, adjusted operating earnings fell sharply by 41.1% to $9.6 billion, reflecting reduced Medicare funding and persistently elevated medical cost trends.
Margins compressed significantly. Adjusted operating margin declined to 2.8% from 5.4% a year earlier. The medical care ratio rose to 89.1% from 85.5%, signaling higher spending on patient care. For 2026, management projects the ratio in the 88.3–89.3% range, supported by repricing actions aimed at offsetting cost pressures. Operating earnings are expected to rebound to more than $10.8 billion.
UnitedHealthcare served 49.8 million individuals in 2025, up just 0.8% year over year. However, Commercial Risk Based enrollment declined 7.7%. Looking ahead, total medical membership is projected within 46.945 – 47.495 million in 2026, reflecting declines across commercial risk, Medicare Advantage and Medicaid plans.
Revenue guidance also signals caution. The 2026 total revenue outlook of more than $439 billion compares unfavorably with $447.6 billion in 2025, marking what would be the first annual revenue contraction in decades.
Further uncertainty stems from a proposed 0.09% increase in 2027 Medicare Advantage payment rates, well below expectations. Given that Medicare Advantage represents nearly half of UnitedHealthcare’s revenues, reimbursement trends remain a critical variable. As such, the company is expected to continue its repricing and cost-curbing efforts and streamline operations from less profitable businesses.
Peers Struggle as Medical Cost Pressures Intensify
UnitedHealth’s peers like Centene Corporation CNC and Elevance Health, Inc. ELV are also feeling the pressure from escalating medical costs.
Centene’s 2025 health benefits ratio rose to 91.9%, deteriorating 360 basis points year over year, driven by a sharp 25.5% jump in medical expenses, partially offset by Medicaid rate hikes. Elevance is also facing cost strain, with its benefit expense ratio increasing 150 basis points to 90% in 2025. Meanwhile, the Health Benefits unit’s adjusted operating margin slid to 2.5%, a 170-basis-point decline. These results signal widespread margin pressure and volatility across the managed care landscape.
UnitedHealth’s Price Performance, Valuation and Estimates
Shares of UNH have lost 19.7% over the past month compared with the industry’s decline of 14.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 15.67, still up from the industry average of 14.09. UNH carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2025 earnings is pegged at $17.69 per share, implying an 8.2% improvement from the year-ago period.
Image Source: Zacks Investment Research
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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Elevance Health, Inc. (ELV) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UnitedHealthcare Under Pressure: Can UNH's Core Business Rebound?

The S&P 500 Index ($SPX) (SPY) on Friday closed up +1.97%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +2.47%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +2.15%. March E-mini S&P futures (ESH26) rose +1.92%, and March E-mini Nasdaq futures (NQH26) rose +2.07%.
Stock indexes rallied sharply on Friday, with the Dow Jones Industrials posting a new all-time high. Recently beaten-down chipmakers, software companies, and AI-infrastructure stocks surged on Friday on dip buying as they recovered some of this week's sharp losses. Stock indexes added to their gains on Friday after the University of Michigan US Feb consumer sentiment index unexpectedly rose to a 6-month high.
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On the negative side of the market, Amazon.com fell more than -5% after the company announced plans to spend $200 billion this year on data centers, chips, and other equipment, sparking concern that its huge bet on artificial intelligence may not pay off in the long run.
The University of Michigan US Feb consumer sentiment index unexpectedly rose +0.9 to a 6-month high of 57.3, stronger than expectations of a decline to 55.0.
The University of Michigan US Feb 1-year inflation expectations fell to a 13-month low of 3.5%, weaker than expectations of no change at 4.0%. The Feb 5-10 year inflation expectations ticked up to 3.4%, stronger than expectations of no change at 3.3%.
US Dec consumer credit rose by +$24.045 billion, stronger than expectations of +$8.000 billion and the largest increase in a year.
Fed comments on Friday were mixed for stocks and bonds. On the positive side, Fed Vice Chair Philip Jefferson said he was "cautiously optimistic" about the US economy's outlook and that strong productivity growth could help return inflation to the Fed's 2% target. Conversely, Atlanta Fed President Raphael Bostic said, "It's paramount for the Fed to keep monetary policy in a restrictive posture so that we get inflation back to 2%." Also,
Bitcoin (^BTCUSD) recovered from a 1.25-year low on Friday and surged by more than +11% to lift cryptocurrency-exposed stocks. Bitcoin is recovering from a selloff that briefly dragged it down more than 50% from its October record high. According to Coinglass data, investors pulled $434 million from US Bitcoin ETFs on Thursday, and about $2.1 billion in long positions in cryptocurrencies were liquidated over the past 24 hours.
Q4 earnings season is in full swing, as more than 150 of the S&P 500 companies reported earnings this week. Earnings have been a positive factor for stocks, with 79% of the 293 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The markets are discounting a 19% chance for a -25 bp rate cut at the next policy meeting on March 17-18.
Overseas stock markets settled mixed on Friday. The Euro Stoxx 50 closed up by +1.23%. China's Shanghai Composite closed down -0.25%. Japan's Nikkei Stock 225 closed up +0.81%.
Interest Rates
March 10-year T-notes (ZNH6) on Friday closed down by -0.5 of a tick. The 10-year T-note yield rose +2.2 bp to 4.202%. Mar T-notes fell from a 3-week high on Friday, and the 10-year T-note yield climbed from a 3-week low of 4.156%. T-notes gave up an early advance and posted modest losses on Friday after a sharp rally in stocks reduced safe-haven demand for T-notes. Also, the unexpected increase in the University of Michigan US Feb consumer sentiment index to a 6-month high weighed on T-notes. In addition, hawkish comments on Friday from Atlanta Fed President Raphael Bostic undercut T-note prices when he said, "It's paramount for the Fed to keep monetary policy in a restrictive posture."
European government bond yields were mixed on Friday. The 10-year German bund yield rebounded from a 2.5-week low of 2.812% and finished unchanged at 2.842%. The 10-year UK gilt yield fell by -4.4 bp to 4.514%.
German Dec industrial production fell -1.9% m/m, weaker than expectations of -0.3% m/m and the biggest decline in four months.
German trade news was better than expected as Dec exports rose +4.0% m/m, stronger than expectations of +1.1% m/m and the biggest increase in 4 years. Dec imports rose +1.4% m/m, stronger than expectations of +0.2% m/m.
Swaps are discounting a 3% chance of a -25 bp rate cut by the ECB at its next policy meeting on March 19.
US Stock Movers
Chip makers and AI-infrastructure stocks rallied on Friday as they recovered some of this week's sharp losses. ARM Holdings Plc (ARM) and Super Micro Computer (SMCI) closed up more than +11%, and Nvidia (NVDA) closed up more than +8% to lead gainers in the Dow Jones Industrials. Also, Advanced Micro Devices (AMD), KLA Corp (KLAC), Lam Research (LRCX), and Marvel Technology (MRVL) closed up more than +8%. In addition,Broadcom (AVGO) closed up more than +7%, and Applied Materials (AMAT) closed up more than +6%. Finally, Seagate Technology Holdings (STX) closed up more than +5%, and Intel (INTC) and ASML Holding NV (ASML) closed up more than +4%.
Cryptocurrency-exposed stocks rallied on Friday as they recovered some of this week's sharp losses, after Bitcoin (^BTCUSD) recovered from a 1.25-year low and surged more than +11%. Strategy (MSTR) closed up more than +26% to lead gainers in the Nasdaq 100, and MARA Holdings (MARA) closed up by more than +22%. Also, Riot Platforms (RIOT) closed up by more than +19%, and Galaxy Digital Holdings (GLXY) closed up by more than +16%. In addition, Coinbase Global (COIN) closed up by more than +12%.
Bill Holdings (BILL) closed up more than +36% after reporting Q2 adjusted EPS of 64 cents, better than the consensus of 56 cents, and raising its full-year adjusted EPS forecast to $2.33 to $2.41 from a previous forecast of $2.11 to $2.25, above the consensus of $2.23.
Roblox (RBLX) closed up more than +9% after reporting Q4 bookings of $2.22 billion, better than the consensus of $2.09 billion, and forecasting full-year bookings of $8.28 billion to $8.55 billion, stronger than the consensus of $8.05 billion.
Gen Digital (GEN) closed up more than +7% after forecasting full-year adjusted EPS of $2.54 to $2.56, stronger than the consensus of $2.54.
Caterpillar (CAT) closed up more than +6% after CICC initiated a recommendation of outperform on the stock with a price target of $800.
Vistra Corp (VST) closed up more than +4% after Goldman Sachs upgraded the stock to buy from neutral with a price target of $205.
Estee Lauder (EL) closed up more than +2% after Citigroup upgraded the stock to buy from neutral with a price target of $120.
Molina Healthcare (MOH) closed down by more than -25% to lead losers in the S&P 500 after reporting an unexpected Q4 loss of -$2.75 EPS versus expectations of a +41 cent profit, and forecasting full-year adjusted EPS of at least $5.00, well below the consensus of $13.71.
Stellantis NV (STLA) closed down more than -23% after it said a business reset resulted in charges of around 22.2 billion euros for the second half of 2025, about double the market consensus.
Doximity (DOCS) closed down more than -16% after forecasting full-year revenue of $642.5 million to $643.5 million, weaker than the consensus of $645.6 million.
Illumina (ILMN) is down more than -9% after reporting Q4 adjusted gross margin of 67%, below the consensus of 68.1%.
Amazon.com (AMZN) closed down more than -5% to lead losers in the Nasdaq 100 after announcing plans to spend $200 billion this year on data centers, chips, and other equipment, sparking concerns that its huge bet on artificial intelligence may not pay off in the long run.
Centene (CNC) closed down more than -3% after forecasting full-year revenue of $186.5 billion to $190.5 billion, below the consensus of $192.72 billion.
Hims & Hers Health (HIMS) closed down more than -2% after FDA Commissioner Makary said his agency will take "swift action against companies mass-marketing illegal copycat drugs, claiming they are similar to FDA-approved products," after Hims on Thursday launched a cheaper copycat version of the Wegovy weight-loss pill.
Earnings Reports(2/9/2026)
AECOM (ACM), Amentum Holdings Inc (AMTM), Amkor Technology Inc (AMKR), Apollo Global Management Inc (APO), Arch Capital Group Ltd (ACGL), Becton Dickinson & Co (BDX), Brixmor Property Group Inc (BRX), Cincinnati Financial Corp (CINF), Cleveland-Cliffs Inc (CLF), CNA Financial Corp (CNA), Corebridge Financial Inc (CRBG), Dynatrace Inc (DT), Kilroy Realty Corp (KRC), Kyndryl Holdings Inc (KD), Loews Corp (L), Medpace Holdings Inc (MEDP), ON Semiconductor Corp (ON), Principal Financial Group Inc (PFG), Simpson Manufacturing Co Inc (SSD), UDR Inc (UDR), Vornado Realty Trust (VNO), ZoomInfo Technologies Inc (GTM).
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.

Centene Corporation

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