CVS Health Corporation provides health solutions in the United States. It operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. The Health Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, specialty and mail order pharmacy, clinical, disease management, and medical spend management services. It serves employers, insurance companies, unions, government employee groups, health plans, prescription drug plans, Medicaid managed care plans, CMS, plans offered on public health insurance, and other sponsors of health benefit plans. The Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, consumer health and beauty products, and personal care products. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. It operates online retail pharmacy websites, LTC pharmacies and on-site pharmacies, retail specialty pharmacy stores, compounding pharmacies and branches for infusion and enteral nutrition services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was incorporated in 1996 and is headquartered in Woonsocket, Rhode Island.

CVS Health Corporation демонстрирует смешанную фундаментальную картину. С одной стороны, компания обладает высоким уровнем выручки, значительно превышающей медиану отрасли, что является положительным фактором. Однако, множественные показатели, такие как P/E, P/B и P/S, значительно выше медианных значений, что указывает на возможную переоцененность акций. Долговая нагрузка также вызывает опасения, так как коэффициент долга к капиталу значительно выше медианы. При этом, рентабельность (ROE, ROA) и маржи находятся на критически низких уровнях по сравнению с отраслью, что указывает на слабую операционную эффективность. Дивидендная доходность также снизилась, что может негативно сказаться на привлечении инвесторов. Несмотря на высокий уровень активов и значительную долю собственного капитала, текущее состояние компании вызывает вопросы о ее способности генерировать устойчивую прибыль в будущем. В целом, текущие метрики и их динамика предполагают необходимость пересмотра целевой цены акций, учитывая риски и неопределенности в финансовых показателях.

CVS Health Corporation

Key Points
One analyst thinks Eli Lilly's shares boast significant upside potential.
The company's weight loss portfolio could help drive solid growth over the medium term.
There are other reasons to buy Eli Lilly's shares at current levels.
Eli Lilly (NYSE: LLY) has established itself as the leader in the weight-loss drug market. Since this area is projected to grow significantly over the next decade, the company's outlook seems bright. However, some investors are skeptical about the drugmaker's ability to generate superior returns over the next five years. The bears will point to Eli Lilly's valuation: the company trades at 25.7x forward earnings, well above the 17x average for healthcare stocks.
Even at current levels -- and with its shares changing hands for about $870 apiece -- some people think Eli Lilly remains undervalued. Let's look at what a Wall Street analyst recently said on the topic and what it means for investors.
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A bullish outlook
Terence Flynn, an analyst at Morgan Stanley, recently reiterated an overweight (or "buy") rating on Eli Lilly stock along with a price target of $1,327. That suggests an upside of about 52% from its current levels. If Eli Lilly can reach this price target within the next year, the stock will exceed the $1 trillion mark.
Why is Flynn so bullish on the stock? Partly because of Eli Lilly's dominance in the weight loss market. This comes even in the wake of recent coverage decisions by major insurers, including CVS Health, which decided to drop coverage of Eli Lilly's Zepbound, a move that could slow the medicine's adoption. CVS Health will, instead, cover the cheaper Wegovy, marketed by Novo Nordisk.
Still, Flynn thinks that Zepbound and Eli Lilly's new weight loss oral pill, Foundayo, could generate about $31 billion in combined sales in the U.S. next year, with that number potentially rising to $45 billion in 2030. For reference, Foundayo was recently launched just weeks ago, whereas Zepbound generated worldwide revenue of $13.5 billion in 2025. If Flynn is right, we can expect attractive top-line growth for Eli Lilly through the end of the decade (and perhaps beyond).
Should you buy the stock?
CVS Health's recent coverage decision highlights one of the major risks Eli Lilly faces. There are others. The company will encounter even more competition in the coming years. That means more options for patients and third-party payers, reduced pricing power, perhaps a smaller market share, and more. Despite these potential issues, my view is that Eli Lilly remains an attractive stock to buy. Here are three reasons why. First, the company's weight-loss pipeline is second to none.
Eli Lilly boasts some candidates in development that could prove even more effective than Zepbound. Perhaps the most promising is retatrutide, a medicine currently in phase 3 studies. This investigational therapy led to a mean weight loss of 28.7% (at the highest dose) in a 68-week late-stage trial. Although it's always challenging to compare across studies, that's much better than anything Zepbound has ever accomplished in a similar amount of time in clinical trials.
Even Eli Lilly's new weight loss pill, Foundayo, looks highly promising. Besides having no food or water restrictions -- unlike its only real competitor, oral Wegovy -- it is also undergoing several phase 3 studies across other potential indications. The list includes obstructive sleep apnea, hypertension, and more. Additional indications should help broaden the medicine's appeal and boost its sales. So, Eli Lilly should remain the leader in this market for a while.
Second, the company has a vast pipeline outside of its core area of expertise. Eli Lilly is doubling down on fields such as oncology, neuroscience, and others. The company has improved its pipeline in these and other niches through acquisitions. If it can launch more medicines beyond diabetes and obesity, the company will be better equipped to handle the increased competition it will face in its core market. Third, Eli Lilly is an attractive dividend stock.
Don't let the company's unimpressive forward yield of 0.7% fool you -- that's largely because the stock has crushed broader equities over the past five years. Eli Lilly has increased its payouts by 103.5% in this period. Considering its fast-growing top and bottom lines and excellent income program, Eli Lilly is a great stock for growth-oriented investors and dividend seekers alike.
Should you buy stock in Eli Lilly right now?
Before you buy stock in Eli Lilly, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eli Lilly wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $492,752!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,327,935!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 201% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Prosper Junior Bakiny has positions in Eli Lilly and Novo Nordisk. The Motley Fool recommends CVS Health and Novo Nordisk. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Eli Lilly Stock Undervalued at $870? 1 Top Wall Street Analyst Thinks So

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Albemarle Corp. (Symbol: ALB), where a total volume of 9,506 contracts has been traded thus far today, a contract volume which is representative of approximately 950,600 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 46% of ALB's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $155 strike put option expiring January 15, 2027, with 2,642 contracts trading so far today, representing approximately 264,200 underlying shares of ALB. Below is a chart showing ALB's trailing twelve month trading history, with the $155 strike highlighted in orange:
CVS Health Corporation (Symbol: CVS) options are showing a volume of 34,054 contracts thus far today. That number of contracts represents approximately 3.4 million underlying shares, working out to a sizeable 45.6% of CVS's average daily trading volume over the past month, of 7.5 million shares. Particularly high volume was seen for the $84 strike call option expiring May 01, 2026, with 15,380 contracts trading so far today, representing approximately 1.5 million underlying shares of CVS. Below is a chart showing CVS's trailing twelve month trading history, with the $84 strike highlighted in orange:
And Seagate Technology Holdings PLC (Symbol: STX) options are showing a volume of 15,606 contracts thus far today. That number of contracts represents approximately 1.6 million underlying shares, working out to a sizeable 44.4% of STX's average daily trading volume over the past month, of 3.5 million shares. Particularly high volume was seen for the $290 strike put option expiring June 18, 2026, with 1,564 contracts trading so far today, representing approximately 156,400 underlying shares of STX. Below is a chart showing STX's trailing twelve month trading history, with the $290 strike highlighted in orange:
For the various different available expirations for ALB options, CVS options, or STX options, visit StockOptionsChannel.com.
Also see:
Chemicals Dividend Stocks
Top Ten Hedge Funds Holding LFS
Highest Yielding Preferred Stocks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Tuesday Option Activity: ALB, CVS, STX

Key Points
Target's stock has struggled mightily in recent years, but it's off to a hot start in 2026.
The company's new CEO is investing in store models and working on ways to improve the customer experience.
The stock's valuation remains incredibly low when compared to rival Walmart.
Buying a stock that's down big can come with risks, but not all risks are the same. There are purely speculative plays like meme stocks, and then there are also quality stocks that billionaire investor Warren Buffett loves to buy when they get into "temporary trouble." If you find ones that are in the latter category, you could set yourself up for some terrific gains down the road, without taking on much risk.
One stock that could fit that criteria and which may have tremendous potential is Target (NYSE: TGT). It's been a bit of a forgotten retail stock as its business has faced challenges due to a decline in discretionary spending. Rival Walmart has been the hotter buy in recent years, as its business is less vulnerable to economic slowdowns, with groceries making up a larger chunk of its revenue. However, here's why the underrated dividend stock to own right now could prove to be Target.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The company's new CEO is making improvements to stores and the overall customer experience
Michael Fiddelke became CEO of Target on Feb. 1, taking over from Brian Cornell. And as a long-term veteran of Target, Fiddelke has many ideas for how to make the business better. The company is in the midst of remodeling 130 stores, launching next-day delivery in 20 new markets, and it's also planning to enhance the digital experience with the help of artificial intelligence.
These may appear to be small, incremental moves for the company, but they can make its stores more appealing to customers, especially the new store layouts, which are a hit with shoppers -- 92% of whom say they are "highly satisfied" with the experience. The company has been attempting to offer more of a one-stop shopping experience with the new layouts and by partnering with Starbucks and CVS Health.
The stock has already been off to a strong start to 2026, and has more room to run
Year to date, shares of Target are up around 33%. However, on a five-year basis, the retail stock is still down 37%. Target's stock may be trading near its 52-week high, but its price-to-earnings multiple remains modest at 16. By comparison, Walmart trades at 47 times its earnings.
Target looks due for more of a rally as the investments it's making into enhancing its stores and adding value for consumers could pay off significantly. The stock has taken a brutal beating in recent years, but it can provide investors with excellent value today. Plus, it also has a high-yielding dividend that pays 3.5%, giving you plenty of incentive to just buy and hold.
Should you buy stock in Target right now?
Before you buy stock in Target, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Target wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $492,752!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,327,935!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 201% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks, Target, and Walmart. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This Beaten‑Up Dividend Stock Is Ready for a Rebound Few See Coming

In this episode of Motley Fool Money, Motley Fool contributors Travis Hoium, Lou Whiteman, and Rachel Warren discuss:
SpaceX agreeing to buy Cursor.
Amazon getting into GLP-1s.
Meta’s AI spyware.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
A full transcript is below.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 983%* — a market-crushing outperformance compared to 200% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of April 27, 2026.
This podcast was recorded on April 23, 2026.
Travis Hoium: SpaceX is making another big acquisition, this time buying Cursor. Makes sense, long-term. Motley Fool Money starts now. Welcome to Motley Fool Money. I'm Travis Hoium. I'm joined today by Lou Whiteman and Rachel Warren.
Guys, we've got to start with what I think might be one of the biggest news items of the week, despite the fact that we're in the middle of earnings season, SpaceX has made a deal to potentially buy Cursor. It's a little bit confusing. They're either going to buy Cursor for $60 billion at some point in the future, or they're going to write them a $10 billion check for whatever they're doing together. Lou, this is another acquisition that SpaceX is making in the AI space. Obviously, xAI, which includes X, formerly known as Twitter, and the AI efforts were acquired earlier this year, or maybe it was last year, but in the last year. This is another move in that direction, but it seems to be just a lot of spaghetti at the wall for a company that used to be so focused on space, and now looking at a potentially $2 trillion IPO, I don't know what this company is becoming at this point.
Lou Whiteman: I'm not sure it does, either, but I can clear something up for you, I think, from my investment banking days. What's going on, to reason the weird $10 billion, $60 billion? It is really awkward to do an acquisition before an IPO. You have to refile all your paperwork, go from scratch. It's going to delay things. They can't do the deal right now. It's basically, A, I promise to buy you after the IPO. Think of the 10 billion as a massive breakup fee, where you get something out of this either way, but that's why it's this convoluted, weird thing. Yes, they want to buy, and look, I think what's going on, what the strategy is, X is clearly behind Claude and the other models. They're trying to catch up, they're trying to add to their firepower. Cursor likely helps AI, but it also does add to the burden. One of the reasons Cursor was trying to find fundraising or do a deal is they need money for their own compute. They were kind of yesterday's news, too. I think it all makes sense, but at the same time, it is just a bunch of companies that maybe aren't front of mind in the xAI race, trying to join together to become front of mind again or to build something from here.
Travis Hoium: Rachel, the odd thing is, these may not be the leaders, either of these companies, but this is going to probably be one of the most valuable companies in the world. It's a strange place to be.
Rachel Warren: I mean, I think we're seeing a paradigm where SpaceX is trying to convince investors that it deserves the valuation that's rumored to be up to $2 trillion when it goes public, very likely in June, but I think this is part of this core strategy to transform SpaceX from a simple rocket company into this massive tech engine that can really connect space hardware with AI. We've seen this out, merging with xAI, obviously securing this major deal with Cursor. I think that they're trying to position themselves to solve what is still really the biggest problem facing AI today, which is really the massive amount of electricity and land needed for data centers. We know that the long-term vision for Musk is to use Starship to launch giant orbital data centers that run on constant solar power, use the cold of space for cooling. That would move the heavy lifting of AI computing off the Earth's power grid and into orbit.
This partnership with Cursor could act as a test run for that vision, right? I mean, they're paying for the keys to one of the most advanced suites of AI coding tools that could really speed up their own engineering on various projects, including their mission to Mars. I think there's both a bull and a bear side here on the bull side. SpaceX is building a space-based monopoly that no one else can touch. That's the idea here, they're looking to combine the world's most powerful rockets with advanced AI, but there's also the barricade. I mean, this idea that that proposed valuation is dangerously high, there's the massive $1 billion monthly burn rate of AI division. There's the very extreme technical difficulty of keeping sensitive computer chips from overheating in the vacuum of space. I think there's still a lot we don't know here, but I do think that there is a strategy behind all of these updates we've seen recently.
Lou Whiteman: Can we just put the data center and space thing to rest? It's balderdash, and it's balderdash for at least a decade.
Travis Hoium: But this is the interesting piece of this because this has been a Musk strategy for two decades at this point. I followed the solar industry very closely, and when Tesla announced that they were acquiring SolarCity, remember that actually coincided with SolarCity announcing that they were going to make these solar shingles. Solar shingles have been a concept and an idea for decades before that. The people that I talked to in the industry said, look, we've been trying to do exactly what they announced for a very long time, and it is either extremely costly or it just doesn't work. Either they've figured something out, or this isn't real, and it turns out it wasn't really real. It seems like a playbook that we've seen before. Now, you could make the argument that that actually worked out well for SolarCity shareholders because Tesla stock went up, but [OVERLAPPING]
Lou Whiteman: For SolarCity shareholders.
Travis Hoium: For SolarCity shareholders, but the operations never really turned out to be that vision that Musk was playing out. This is a totally different case because we're not buying a $10 billion, $20 billion company. This is potentially a $2 trillion IPO with promises that I think, they've even said in their filings, potentially don't have commercial viability.
Lou Whiteman: Before we get letters, let's just spend a second and explain because we will get letters. How dare you? No, I'm not a rocket scientist, but I can tell you that, look, for one thing, we don't really have the materials that we need to protect a data center in space from the radiation. The International Space Station would melt up if it didn't go behind the Earth and hide from the sun every 12 hours to cool down. The idea of just like 24/7 power, because this thing would just be sitting out exposed to the sun 24/7, we don't have the materials to do that. By the time you get the radiators needed to dissipate heat in a vacuum, it's the same problem that they've experienced with Starship, and we can get into some of it. When you try with a simple concept, why don't we do this? Then you realize you have to staple 3,000 different things onto it. That's why other people weren't using that concept, because it's a lot more complicated than your one-page white paper. But the time you start adding all of this, you have this massive, expensive contraction up there that I don't think we have the physics to do right now. Even if we did, it would be so massively expensive. It'd be cheaper, honestly. If you really want to talk about where we need to put data centers, put them on the bottom of the ocean. The fact that we haven't done that when it's so much easier.
Travis Hoium: But Elon Musk doesn't already have an ocean company.
Lou Whiteman: That's fair, but serious, I mean, you talk about the costs. I don't know what xAI runs, but I know what the other hyperscalers run per month. If you think about the massive cash needs there, they've spent $5 billion on Starship so far, and how's that going? There's still more money to spend. You add on Cursor's computer or whatever. I really wish I think the IPOs can be a huge success. If anything, I think it could squeeze higher, and maybe I don't know. Why not, a $5 trillion valuation by the end of the summer, why not? But I really wish that instead of getting this massive valuation, maybe they'd sell more shares, except for the lower valuation, and build their cash pile because they're going to need it.
Travis Hoium: It's going to be very interesting to see what happens in the secondary market because that is potentially an option. Maybe they go public with a relatively short float. Stock moves higher, and then you sell a whole bunch of shares and raise $50 billion, $100 billion. The numbers are getting wild as these stories get bigger and bigger, but lots of questions about their operations as they head to public markets. When we come back, we're going to get to Amazon moving into the GLP-1 market. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money. Amazon announced this week that it's getting into the GLP-1 game. The company is bringing GLP-1 pills and pens, as they're now known to its platform. This doesn't necessarily include the prescriptions. You can just get access to GLP-1s. You can also go through the Amazon prescriptions, but Rachel, this is interesting because Amazon keeps moving more and more into the medical field. You can get more and more of your prescriptions there. What's the goal here, and who are they ultimately going after?
Rachel Warren: This is a really interesting bit of news. I mean, it's a major shift. I think one of the things that Amazon is looking to solve here is to fix one of the messier parts of healthcare, which is getting the actual medication to consumers. Amazon's really leaning into their strength as a logistics and pharmacy powerhouse. Under this new program, if you have an existing prescription for a GLP-1 medication, or you go and visit a doctor through one medical, either virtually or in person. You can get a prescription for a GLP-1, and Amazon is going to help facilitate that process of getting it to you as the consumer. Bringing GLP-1 pills and pens directly into the Amazon pharmacy ecosystem, they're really cutting out the middleman. They're focusing on the supply chains. You can see how this could be more disruptive to your traditional pharmacy chains like CVS, per se, than necessarily the telehealth companies we think of like Hims and Hers.
I think the strategy here is to really leverage the trust and speed that people expect from Amazon delivery, integrating these medications with existing one medical clinics and pharmacy hubs. There's going to be thousands of cities where Amazon is now going to be offering same-day delivery of GLP-1. I read they have plans to expand that reach to up to 4,500 cities by the end of the year. I think the bottom line here is Amazon's betting that customers are going to choose reliability, fast shipping, over maybe the niche branding of smaller telehealth startups. They have hundreds of millions of Prime members. They have a delivery network that no startup can really match. They offer lower prices. There's a level of convenience that can make some of the smaller platforms look like a hassle. I actually think this is a good boost for them. I mean, there's always the risk that Amazon, which is doing a million different things, might struggle with some of the elements of actually getting the medication to customers. But I think that overall, this is good news for Amazon. I think it's great news for its customers.
Travis Hoium: Lou, the challenge here might be that this is supposed to be Amazon is supposed to be this customer-focused company, but don't customers love going to CVS?
Lou Whiteman: Do they? I mean, where else do you get those receipts? Look, I get GLP-1s are splashy, so I see why this is a big deal, but this is what Amazon has been doing for a while. It really doesn't have anything to do with healthcare. As Rachel said, it's disrupting the pharmaceuticals. There are a lot of people who go running out to the pharmacy, especially for maintenance drugs, like a Statin or a GLP-1, where you don't need it this second because I have the flu and I need real quick. It could be a hassle to get. There are a lot of people who, in parts of their life, where the delivery makes sense. I think this is good for the consumer. It doesn't really threaten the Roes of the Hims of the world. I think Amazon is deliberately avoiding that because, quite frankly, they don't have to. Travis, we can argue this all day, but the doc in the box model that Hims and Ro, these guys are trying to do, maybe it's because they're trying to disrupt healthcare. Maybe it's because it's their only way to do it. They need to do it. It's it can work, but if you touch the wrong wire, you get electrocuted there. Amazon doesn't have to do that, and so they're not coming after these guys. These guys will remain fringe, but for the core medical establishment, this is just a more efficient way to get your medicines, just like Amazon.com can be a more efficient way to get your paper towels, or whatever you need each month, versus going to Walmart.
Travis Hoium: It's going to be so interesting to see how they handle this transparency, too. This is one thing as we look at. The kids get prescriptions periodically, and we have allergies and things like that, and you go to Amazon, and you can actually see what you're going to pay. When you walk into a CVS or Walgreens, especially buying something like an EpiPen, which we got to do a couple of times a year. That's always my go-to story, but you have no idea if you're going to be paying nothing or you're going to be paying $600 for those things. I applaud them for at least bringing that transparency and easy distribution because if I can save myself that hour or two standing in line and arguing with the pharmacist, that's going to be a huge win for consumers. It'd be interesting to see where they take this.
Lou Whiteman: We've had this conversation before. Healthcare is definitely broken, and I am all for trying to fix it, and I think what you're talking about is definitely that. I mean, I'm skeptical about Roe or Hims as the solution, but the bittersweet thing here for me is, do you remember it was what? Just a decade ago, that Amazon was teaming with Berkshire and JPMorgan, and they were like the super friends of healthcare. They were going to just meet in their hall of justice, and they were going to fix healthcare. I think what they discovered is what everyone who has tried this has discovered. It's really, really hard to fix. At least Amazon is now trying to attack the part where they can lean into their strengths, but we need a better system, and I guess we're getting little improvements in the fringes.
Travis Hoium: Got to cheer the small things, I guess, when it comes to healthcare. When we come back, we're going to talk about Mark Zuckerberg potentially finding the perfect use case for artificial intelligence, tracking his employees. You're listening to Motley Fool Money.
Welcome back to Motley Fool Money. Meta has found its new use case for artificial intelligence. This is a variety of different sources, but Reuters headline, I think, was the most telling. Meta to start capturing employee mouse movements and keystrokes for AI training data. Rachel, has Mark Zuckerberg found the perfect use case for AI?
Rachel Warren: I think that remains to be seen. This idea of tracking every click, scroll, and keystroke under the guise of productivity and future model training, maybe, that's it. I mean, this means they'd be essentially turning their own workforce into this massive living ongoing data set. Then you have to think, is the use case for AI just finding more efficient ways to look over your shoulder? I don't know about that. It does raise some questions about the future of work in an AI-driven economy. If Meta succeeds in productizing the brain power and workflows, if its engineers, for example, are they building a replacement for that workforce, eventually? It's interesting. I mean, we spent years worrying about what AI will do to us, but maybe we should have been more worried about what it's going to watch us do. I think Zuck is trying to not just build the future. I think he's trying to watch us build it, too. Maybe in the world of big tech, the line between cutting-edge innovation and the digital overlord has never been more blurred. But I can't say I'm surprised by this news. It'll be interesting to see what those datasets actually look like if we ever get to see them.
Travis Hoium: Zuck's arc is so fascinating because he goes from villain to hero to villain, and now I think he's maybe take another villain turn if he's tracking everybody this closely.
Lou Whiteman: I guess. Look, I'm not here to defend this, but come on, everybody's been doing this forever. It's just a new tool to do it, so I'm over it. But I have two points to make, a serious one and then maybe a not-so-serious one. For one, I do think that this is admitting a vulnerability. The reason to do this is there really isn't the high-quality interactive training data they need to actually replace their employees. There isn't a source for that other than the employees who are doing it. Look, maybe Zuck has figured out a way, so there's ways around that vulnerability, but it does feel like this is a vision of weakness. But, Travis, here's the funniest thing. The AI does this, it starts training by watching people, and suddenly the AI, instead of being this productive machine, ends up spending half the day scrolling Instagram or going on Amazon to try and find a dress or something for the weekend. There are so many ways that this could backfire, where if we make AI more human, be careful what you wish for.
Travis Hoium: You could argue that Meta has been making people less productive for the last 20 years. Maybe this will make AI less productive as well.
Lou Whiteman: The future we begged for.
Travis Hoium: As always, people on the program may have an interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. All personal finance content follows The Motley Fool's editorial standards and is not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our shows. Lou Whiteman, Rachel Warren, Bart Shannon behind the glass, I'm Travis Hoium. Thanks for listening to Motley Fool Money. We'll see you here tomorrow.
Lou Whiteman has positions in Berkshire Hathaway and Walmart. Rachel Warren has positions in Alphabet and Amazon. Travis Hoium has positions in Alphabet, Berkshire Hathaway, and Hims & Hers Health. The Motley Fool has positions in and recommends Alphabet, Amazon, Berkshire Hathaway, Hims & Hers Health, Meta Platforms, and Walmart. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.
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SpaceX Goes on $60 Billion AI Buying Spree

Investment banker Goldman Sachs recently raised its price target for UnitedHealth Group Incorporated (UNH) shares from $400 to $435, citing the company’s increased full-year guidance, announced in its latest quarterly results release, as evidence of UnitedHealth’s long-term earnings growth potential (as cited in Investing.com).
Notably, Goldman Sachs expects UnitedHealth to return to at least 13% to 16% earnings per share growth over the next several years as it executes its business recovery.
While this upgrade, following UNH’s recently released better-than-expected first-quarter 2026 results, may tempt investors to add the stock to their portfolios immediately, a significant headwind remains on the horizon. Legislative changes enacted last year have led to major funding cuts in Medicaid for 2026, putting UNH’s Medicaid business under intense margin pressure. In fact, the company’s management has already signaled expectations for membership attrition and negative margins within this specific segment throughout the year.
However, for those who want to gain exposure to UnitedHealth’s growth while mitigating the idiosyncratic risks of its Medicaid business, diversified healthcare exchange-traded funds (ETFs) offer a more prudent path. By investing in funds where UNH is a top-10 holding, investors benefit from the company's strong medical cost management and declining medical care ratio (which improved to 83.9% in the first quarter), while spreading risk across other healthcare giants in pharma, biotech and medtech industries.
Before suggesting a few such ETFs for your portfolio, let’s take a detailed look at UnitedHealth’s first-quarter performance across key metrics and how analysts from different firms reacted to this result to get a hint of the whole picture.
A Brief Analysis of UNH’s Q1 Results
UnitedHealth’s first-quarter adjusted earnings per share (EPS) surpassed the Zacks Consensus Estimate by 11.9%, while its revenues beat the consensus mark by 2.1%. On a year-over-year basis, the company delivered a solid performance on both counts.
Its first-quarter operating cost ratio came in at 13.8%, up year over year from 12.4%, reflecting the timing of targeted investments across operations, technology and care delivery as well as incremental investments in areas such as AI, customer experience, cybersecurity and community engagement.
UNH was successful in bringing its debt-to-capital ratio down to 42.9% by the end of the first quarter and remains on track to end this year with its goal of achieving a 40% debt-to-capital ratio.
From the viewpoint of the share buyback program, the company initiated share repurchases earlier than anticipated and expects to deploy at least $2 billion by the end of the second quarter of 2026.
As far as its Optum Rx business is concerned, UnitedHealth started 2026 by onboarding more than 800 new clients, while reducing contact call center volume 25% through enhanced digital and AI-enabled self-service, with member satisfaction reaching more than 95%.
Within areas like consumer member experience, UNH recently launched Avery, a generative AI chatbot answering member questions for UnitedHealthcare. The company aims to expand this chatbot to include over 20 million members by the end of 2026.
Meanwhile, Optum Real, an AI-first platform that UNH launched a couple of quarters ago, now has 0.5 billion transactions year to date, with the company expecting to close the year at over 2.5 billion transactions.
Analysts’ Reactions
Following UNH’s Q1 results, analysts from varied firms, apart from Goldman Sachs, have upgraded their price target for this stock, showing renewed optimism in its progress.
For example, Morgan Stanley recently raised its price target on UNH from $375 to $395, while maintaining its “Overweight” rating. Other renowned institutions like Deutsche Bank raised its price target on UnitedHealth from $304 to $360, while maintaining a Hold rating, following the company’s first-quarter results.
UNH-Heavy ETFs to Watch
iShares U.S. Healthcare Providers ETF IHF
This fund, with net assets worth $738.8 million, provides exposure to 60 U.S. companies that provide health insurance, diagnostics and specialized treatment. Of these, UnitedHealth Group takes the first spot, accounting for a 26.50% share. CVS Health CVS (12.49%) and HCA Healthcare (7.38%) hold the second and third positions in this fund, respectively.
IHF charges 38 basis points (bps) in fees. It traded at a good volume of 1.24 million shares in the last trading session.
iShares U.S. Healthcare ETF IYH
This fund, with net assets worth $2.84 billion, provides exposure to 103 U.S. healthcare equipment and services, pharmaceuticals, and biotechnology companies. Of these, UnitedHealth Group takes the fourth spot, accounting for a 5.99% share. Pharma giants Eli Lily LLY (13.12%), Johnson & Johnson JNJ (10.15%) and AbbVie ABBV (6.52%) hold the top three spots in this fund.
IYH charges 38 bps in fees. It traded at a volume of 0.40 million shares in the last trading session.
Vanguard Health Care ETF VHT
With net assets of $16.2 billion, this fund provides exposure to 407 companies engaged in health care equipment manufacturing, health care services, and the research, development, and marketing of pharmaceuticals and biotechnology products. Of these, UnitedHealth Group takes the fifth spot, accounting for a 3.94% share. LLY (11.89%), JNJ (9.34%) and ABBV (6.18%) hold the top three spots in this fund.
VHT charges 9 bps in fees. It traded at a volume of 0.28 million shares in the last trading session.
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iShares U.S. Healthcare ETF (IYH): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Goldman Sachs Lifts UnitedHealth Target Price: Healthcare ETFs to Watch

Key Points
CVS' end-to-end healthcare service improves efficiency.
The company steadily increases revenue every year.
The stock is trading for only 11 times earnings.
Shares of CVS Health (NYSE: CVS) have lagged the S&P 500 in total return this year, reinforcing a familiar narrative about the healthcare company: a mature, slow-growing grinder.
However, that view misses the bigger picture. The market is devoting too much attention to CVS Health's low-margin pharmacy business while overlooking its transformation into a fully integrated, diversified powerhouse, acting as a pharmacy benefits manager through CVS Caremark and a health insurance provider through Aetna.
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The stock is down more than 3% so far this year, and the market may be underpricing this evolution. Here are three reasons it is the ultimate value stock to buy now:
1. The stock is priced low, considering its growth
CVS trades at just under 11 times forward earnings. It has steadily grown revenue every year and is up 126.5% over the past 10 years. It reported a record $402.1 billion in 2025 sales, up 7.8%, while adjusted earnings per share (EPS) rose 24.5% to $6.75. Management is predicting adjusted EPS in 2026 of $7.00 to $7.20.
The healthcare company operates three segments: healthcare benefits, health services, and pharmacy and consumer wellness. All three saw revenue rise at least 9%. Aetna's medical benefit ratio, after spiking in previous years, dropped to around 91%, indicating the company is pricing its Medicare Advantage plans more efficiently and managing costs more effectively.
With its 1,000 walk-in and primary-care clinics (including MinuteClinics and roughly 230 of its Oak Street centers designed for seniors), the company is driving higher medication adherence and lower hospital admission rates among its own insurance members. It is an internal efficiency that pure-play retailers or insurers cannot easily replicate.
2. Steady cash flow bolsters its dividend
CVS froze its dividend at $0.50 per share from 2017 to 2021 as it paid down debt following its $69 billion purchase of Aetna. However, it has never cut its dividend, and since 2022, it has increased it by 33%. The yield at the current share price is a healthy 3.46%; the payout ratio, at 43.5%, signals that the company can afford to increase its dividend.
The company continues to generate cash at a robust rate, allowing it to maintain its dividend while paying down debt. It reported $10.6 billion in cash flow from operations in 2025 and has forecast at least $9 billion in cash flow in 2026.
3. Medicare rate increase will help CVS
Initially, it was thought that the Centers for Medicare and Medicaid Services (CMS) would raise Medicare payment rates by only 0.9%. Instead, the rate increase was 2.48%, meaning the company's Aetna unit could see higher margins this year.
Management said it anticipates revenue of at least $400 billion this year, roughly flat from 2025, and an adjusted earnings compound annual growth rate in the mid-teens over the next three years.
Everyone loves a comeback story
CVS is in the midst of a multiyear rally. If it shows continued progress when it reports first-quarter earnings on May 6, it could again increase its dividend or even start a stock repurchase program. The company's dividend yield is more than twice that of the S&P 500, making it a great buy for value or income investors.
The closing of Rite Aid stores after that company's bankruptcy provides an opportunity for CVS and its more than 9,000 retail stores to increase market share.
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James Halley has positions in CVS Health. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is CVS Health the Ultimate Value Stock to Buy Right Now?

The S&P 500 Index ($SPX) (SPY) on Tuesday closed down -0.63%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -0.59%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.42%. June E-mini S&P futures (ESM26) fell -0.62%, and June E-mini Nasdaq futures (NQM26) fell -0.41%.
Stock indexes gave up an early advance on Tuesday and settled lower. Stocks retreated after WTI crude oil rebounded from early losses and rallied more than +2%, when Iran said it won’t attend peace talks in Pakistan before a ceasefire expires on Wednesday.
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Stock losses accelerated on Tuesday after Vice President Vance's trip to Pakistan to meet Iranian negotiators was put on hold following Iran's failure to respond to US negotiating positions. Also, President Trump said it's "highly unlikely" he will extend the ceasefire with Iran after Wednesday’s deadline, and the US is “ready to go” with a resumption of bombing if a breakthrough isn’t reached.
However, stock index futures recovered in post-market trading after WTI crude oil prices fell, as President Trump, after the markets closed, said he would extend the ceasefire with Iran and maintain the blockade of the Strait of Hormuz, following the scrapping of plans for diplomatic talks between the US and Iran.
Stocks initially moved higher on Tuesday, with the Nasdaq 100 posting a new record high and the Dow Jones Industrial Average hitting a 2-month high on hopes that US-Iran peace talks would continue. Some positive Q1 earnings results from UnitedHealth Group and General Electric also supported stock gains. In addition, Tuesday’s stronger-than-expected US economic reports on March retail sales and March pending home sales suggest that consumer spending is holding up, a supportive factor for stocks.
March retail sales rose +1.7% m/m, stronger than expectations of +1.4% m/m and the biggest increase in a year. Also, March retail sales ex-autos rose +1.9% m/m, stronger than expectations of +1.4% m/m and the biggest increase in 3 years.
US Mar pending home sales rose +1.5%, stronger than expectations of +0.5% m/m.
Meanwhile, stocks found support on signs that Fed Chair nominee Kevin Warsh will back an independent Fed and prioritize low inflation. Fed Chair nominee Warsh's prepared statement before the Senate Banking Committee said he is committed to ensuring that the conduct of monetary policy remains "strictly independent" and to keeping inflation in check, saying price stability is a mandate for the Fed "without excuse or equivocation." When asked if he agreed with President Trump's call for the Fed to lower interest rates, Fed Chair nominee Warsh said, "Unlike many of my colleagues past and present, I don't believe in forward guidance, and I don't believe that I should be previewing for you what a future decision might be."
Senator Tillis of the Senate Banking Committee said he's open to advancing Kevin Warsh's nomination to be Federal Reserve Chair if an ongoing US criminal inquiry into the Fed is dropped and Congress launches its own investigation.
WTI crude oil prices (CLK26) recovered from early losses today and rose more than +2% after Vice President Vance's trip to Pakistan to meet Iranian negotiators was put on hold. The Strait of Hormuz remains essentially closed, threatening to deepen the global energy crisis. The Wall Street Journal reported that the US military is preparing to board Iran-linked oil tankers and seize commercial ships in international waters in the coming days to pressure Iran into reopening the Strait of Hormuz. The blockade could exacerbate global oil and fuel shortages, as about a fifth of the world’s oil and liquefied natural gas transits through the strait. Iran has recently been able to export crude oil during the war, with exports of about 1.7 million bpd in March.
Earnings season continues this week. So far, 83% of the 64 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
The markets are discounting a 1% chance for a +25 bp FOMC rate hike at the April 28-29 policy meeting.
Overseas stock markets settled mixed on Tuesday. The Euro Stoxx 50 closed down -0.88%. China's Shanghai Composite rose to a 1-month high and closed up +0.07%. Japan's Nikkei Stock 225 closed up +0.89%.
Interest Rates
June 10-year T-notes (ZNM6) on Tuesday closed down by -11.5 ticks. The 10-year T-note yield rose by +3.3 bp to 4.284%. T-notes retreated on Tuesday amid stronger-than-expected US economic reports on Mar retail sales and Mar pending home sales. T-notes added to their losses on Tuesday after WTI crude oil recovered from early losses and rallied by more than +2%, which lifted inflation expectations and is bearish for T-note prices.
T-notes have support on signs that Fed Chair nominee Kevin Warsh will support an independent Fed and prioritize low inflation. Fed Chair nominee Warsh's prepared statement before the Senate Banking Committee said he is committed to ensuring that the conduct of monetary policy remains "strictly independent" and to keeping inflation in check, saying price stability is a mandate for the Fed "without excuse or equivocation."
European government bond yields moved higher on Tuesday. The 10-year German bund yield rose by +2.4 bp to 3.004%. The 10-year UK gilt yield climbed to a 1-week high of 4.892% and finished up by +5.0 bp to 4.884%.
The German Apr ZEW survey expectations of economic growth fell -16.7 to a 3.25-year low of -17.2, weaker than expectations of -5.8.
Swaps are discounting a 13% chance of a +25 bp ECB rate hike at its next policy meeting on April 30.
US Stock Movers
Cryptocurrency-exposed stocks moved lower on Tuesday as Bitcoin (^BTCUSD) fell more than -2%. Coinbase Global (COIN) closed down more than -7%, and Galaxy Digital Holdings (GLXY) closed down more than -6%. Also, Strategy (MSTR) and Riot Platforms (RIOT) closed down more than -4%, and MARA Holdings (MARA) closed down more than -3%.
Alaska Air Group (ALK) closed down more than -4% to lead airline stocks lower after crude prices rose more than +2%, boosting fuel costs, and after the company forecast a Q2 adjusted loss per share of -$1.00, much wider than the consensus of -11 cents, and announced that it will suspend full-year guidance due to higher fuel costs. Also, United Airlines Holdings (UAL) and American Airlines Group (AAL) closed down more than -3%, and Southwest Airlines (LUV) closed down more than -2%. In addition, Delta Air Lines (DAL) closed down more than -1%.
Mining stocks slumped on Tuesday as gold prices fell more than -2% and silver prices fell more than -4%. Coeur Mining (CDE) and Hecla Mining (HL) closed down more than -6%, and Anglogold Ashanti (AU) and Barrick Mining (B) closed down more than -5%. Also, Newmont Corp (NEM) closed down more than -4%, and Freeport McMoRan (FCX) closed down more than -3%.
UnitedHealth Group (UNH) closed up more than +7% to lead health insurance stocks higher after reporting Q1 adjusted EPS of $9.23, well above the consensus of $6.57, and raising its full-year adjusted EPS estimate to above $18.25 from a previous view of $17.75. Humana (HUM) closed up more than +4% on the news, Centene (CNC) and Elevance Health (ELV) closed up more than +2%, and CVS Health (CVS) closed up more than +1%.
Cybersecurity stocks moved higher on Tuesday, lending support to the broader market. CrowdStrike Holdings (CRWD) closed up more than +3% to lead gainers in the Nasdaq 100. Also, Palo Alto Networks (PANW), Fortinet (FTNT), and Zscaler (ZS) closed up more than +3%. In addition, Okta (OKTA) closed up more than +2%, and Cloudflare (NET) closed up more than +1%.
Tractor Supply Co (TSCO) closed down more than -11% to lead losers in the S&P 500 after reporting Q1 net sales of $3.59 billion, below the consensus of $3.64 billion.
Northrop Grumman (NOC) closed down more than -6% after forecasting full-year adjusted EPS of $27.40 to $27.90, below the consensus of $27.97.
Prudential Financial (PRU) closed down more than -5% after Nikkei reported that former employees of the company’s Gibraltar business are suspected of committing dozens of cases of financial fraud.
Merk & Co (MRK) closed down more than -3% to lead losers in the Dow Jones Industrials after its Phase 3 trial with Eisai for treatment of advanced renal cell carcinoma did not meet its dual primary endpoints.
Avis Budget Group (CAR) closed up more than +17% amid a short squeeze as two investors, SRS Investment Management and Pentwater Capital Management, own about 71% of the company’s shares. According to S3 Partners data, the company's short interest as a percentage of its free float is currently 62%.
Northern Trust (NTRS) closed up more than +8% to lead gainers in the S&P 500 after reporting Q1 net interest income FTE of $661.6 million, above the consensus of $627.6 million.
D.R. Horton (DHI) closed up more than +5% after reporting Q2 net sales orders of 24,992, better than the consensus of 23,919, and raising its full-year revenue forecast to $34.5 billion from a previous estimate of $33.5 billion to $35.0 billion, stronger than the consensus of $33.4 billion.
Quest Diagnostics (DGX) closed up more than +4% after reporting Q1 net revenue of $2.90 billion, better than the consensus of $2.82 billion.
Arrowhead Pharmaceuticals (ARWR) closed up more than +2% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $100.
Earnings Reports(4/22/2026)
AT&T Inc (T), Boeing Co/The (BA), Boston Scientific Corp (BSX), CME Group Inc (CME), Crown Castle Inc (CCI), CSX Corp (CSX), Elevance Health Inc (ELV), GE Vernova Inc (GEV), Globe Life Inc (GL), International Business Machine (IBM), Kinder Morgan Inc (KMI), Lam Research Corp (LRCX), Las Vegas Sands Corp (LVS), Masco Corp (MAS), Moody's Corp (MCO), NVR Inc (NVR), Otis Worldwide Corp (OTIS), Packaging Corp of America (PKG), Philip Morris International Inc (PM), Raymond James Financial Inc (RJF), Rollins Inc (ROL), ServiceNow Inc (NOW), Southwest Airlines Co (LUV), TE Connectivity PLC (TEL), Teledyne Technologies Inc (TDY), Tesla Inc (TSLA), Texas Instruments Inc (TXN), United Rentals Inc (URI), Vertiv Holdings Co (VRT), Westinghouse Air Brake Technol (WAB).
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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Fall as Iran Refuses to Attend Peace Talks

The S&P 500 Index ($SPX) (SPY) today is down -0.13%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.13%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.02%. June E-mini S&P futures (ESM26) are down -0.13%, and June E-mini Nasdaq futures (NQM26) are up +0.05%.
Stock indexes gave up an early advance and turned mixed today as WTI crude oil rebounded from early losses, jumping more than +2%, amid market speculation about whether Iran will take part in a second round of talks before a ceasefire expires on Wednesday.
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Stocks initially moved higher today, with the Nasdaq 100 posting a new record high and the Dow Jones Industrial Average hitting a 2-month high. Iran initially said it was sending a team to Pakistan for the negotiations, though it wasn’t clear who would be on the team or when they would arrive. President Trump said Vice President Vance would resume negotiations in person, “either Tuesday night or Wednesday morning,” and it's "highly unlikely" he will extend the ceasefire with Iran after Wednesday’s deadline.
Some positive Q1 earnings results from UnitedHealth Group and General Electric are also supporting stock gains. In addition, today’s stronger-than-expected US economic reports on March retail sales and March pending home sales suggest that consumer spending is holding up, a supportive factor for stocks.
March retail sales rose +1.7% m/m, stronger than expectations of +1.4% m/m and the biggest increase in a year. Also, March retail sales ex-autos rose +1.9% m/m, stronger than expectations of +1.4% m/m and the biggest increase in 3 years.
US Mar pending home sales rose +1.5%, stronger than expectations of +0.5% m/m.
Market attention will be on Capitol Hill today as Kevin Warsh appears before the Senate Banking Committee for a confirmation hearing for his nomination as the new Fed Chair. Senator Thom Tillis, a member of the Banking Committee, has said he won’t vote for Warsh until the Department of Justice (DOJ) ends its investigation into a building renovation project at the Fed, which current Fed Chair Powell has said is really a political attack on the Fed over interest rates. Tillis can block Warsh’s nomination from advancing to the full Senate, and neither President Trump nor the DOJ has shown any sign they will close the investigation.
WTI crude oil prices (CLK26) recovered from early losses today and are up more than +2% as Iran has yet to confirm its attendance in Pakistan for peace talks with the US before a ceasefire expires on Wednesday. The Strait of Hormuz remains essentially closed, threatening to deepen the global energy crisis. The Wall Street Journal reported that the US military is preparing to board Iran-linked oil tankers and seize commercial ships in international waters in the coming days to pressure Iran into reopening the Strait of Hormuz. The blockade could exacerbate global oil and fuel shortages, as about a fifth of the world’s oil and liquefied natural gas transits through the strait. Iran has recently been able to export crude oil during the war, with exports of about 1.7 million bpd in March.
Earnings season continues this week. So far, 81% of the 48 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
The markets are discounting a 1% chance for a +25 bp FOMC rate hike at the April 28-29 policy meeting.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.87%. China's Shanghai Composite rose to a 1-month high and closed up +0.07%. Japan's Nikkei Stock 225 closed up +0.89%.
Interest Rates
June 10-year T-notes (ZNM6) today are down by -11 ticks. The 10-year T-note yield is up +3.9 bp to 4.290%. T-notes are sliding today on stronger-than-expected US economic reports on Mar retail sales and Mar pending home sales. T-notes added to their losses today after WTI crude oil recovered from early losses and rallied by more than +2%, which lifted inflation expectations and is bearish for T-note prices.
T-notes have support on signs that Fed Chair nominee Kevin Warsh will support an independent Fed and prioritize low inflation. Fed Chair nominee Warsh's prepared statement before the Senate Banking Committee said he is committed to ensuring that the conduct of monetary policy remains "strictly independent" and to keeping inflation in check, saying price stability is a mandate for the Fed "without excuse or equivocation."
European government bond yields are moving higher today. The 10-year German bund yield is up +1.6 bp to 2.996%. The 10-year UK gilt yield is up +3.4 bp to 4.868%.
The German Apr ZEW survey expectations of economic growth fell -16.7 to a 3.25-year low of -17.2, weaker than expectations of -5.8.
Swaps are discounting a 9% chance of a +25 bp ECB rate hike at its next policy meeting on April 30.
US Stock Movers
UnitedHealth Group (UNH) is up more than +7% to lead health insurance stocks higher after reporting Q1 adjusted EPS of $9.23, well above the consensus of $6.57, and raising its full-year adjusted EPS estimate to above $18.25 from a previous view of $17.75. Humana (HUM) is also up more than +5% on the news, Centene (CNC) and Elevance Health (ELV) are up more than +2%, and CVS Health (CVS) is up +1%.
Cybersecurity stocks are moving higher today, lending support to the broader market. Zscaler (ZS) is up more than +5% to lead gainers in the Nasdaq 100. Also, CrowdStrike Holdings (CRWD) is up more than +4%, and Okta (OKTA) and Palo Alto Networks (PANW) are up more than +3%. In addition, Fortinet (FTNT) is up more than +2%, and Cloudflare (NET) is up more than +1%.
Software stocks are stronger today, a positive factor for the overall market. Atlassian (TEAM), ServiceNow (NOW), and Cadence Design Systems (CDNS) are up more than +3%. Also, Workday (WDAY), Salesforce (CRM), Intuit (INTU), Datadog (DDOG), and Oracle (ORCL) are up more than +2%. In addition, Autodesk (ADSK) and Microsoft (MSFT) are up more than +1%.
Amazon.com (AMZN) is up more than 1% after it said it is investing an additional $5 billion in Anthropic and may inject $20 billion more over time. Amazon’s suppliers are also climbing on the news, with Astera Labs (ALAB) up more than +7%, and Marvell Technology (MRVL) and Credo Technology (CRDO) are up more than +1%.
Avis Budget Group (CAR) is up more than +9% amid a short squeeze as two investors, SRS Investment Management and Pentwater Capital Management, own about 71% of the company’s shares. According to S3 Partners data, the company's short interest as a percentage of its free float is currently 62%.
D.R. Horton (DHI) is up more than +7% after reporting Q2 net sales orders of 24,992, better than the consensus of 23,919, and raising its full-year revenue forecast to $34.5 billion from a previous estimate of $33.5 billion to $35.0 billion, stronger than the consensus of $33.4 billion.
Northern Trust (NTRS) is up more than +5% after reporting Q1 net interest income FTE of $661.6 million, above the consensus of $627.6 million.
Quest Diagnostics (DGX) is up more than +4% after reporting Q1 net revenue of $2.90 billion, better than the consensus of $2.82 billion.
Arrowhead Pharmaceuticals (ARWR) is up more than +3% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $100.
Intel (INTC) is up more than +1% after HSBC upgraded the stock to buy from hold with a price target of $95.
Tractor Supply Co (TSCO) is down more than -8% to lead losers in the S&P 500 after reporting Q1 net sales of $3.59 billion, below the consensus of $3.64 billion.
Northrop Grumman (NOC) is down more than -6% after forecasting full-year adjusted EPS of $27.40 to $27.90, below the consensus of $27.97.
Merk & Co (MRK) is down more than -4% to lead losers in the Dow Jones Industrials after its Phase 3 trial with Eisai for treatment of advanced renal cell carcinoma did not meet its dual primary endpoints.
Prudential Financial (PRU) is down more than -4% after Nikkei reported that former employees of the company’s Gibraltar business are suspected of committing dozens of cases of financial fraud.
Alaska Air Group (ALK) is down more than -4% after forecasting a Q2 adjusted loss per share of -$1.00, much wider than the consensus of -11 cents, and announcing that it will suspend full-year guidance due to higher fuel costs.
Earnings Reports(4/21/2026)
3M Co (MMM), Capital One Financial Corp (COF), Chubb Ltd (CB), Danaher Corp (DHR), DR Horton Inc (DHI), EQT Corp (EQT), Equifax Inc (EFX), General Electric Co (GE), Genuine Parts Co (GPC), Halliburton Co (HAL), Interactive Brokers Group Inc (IBKR), Intuitive Surgical Inc (ISRG), MSCI Inc (MSCI), Northern Trust Corp (NTRS), Northrop Grumman Corp (NOC), Quest Diagnostics Inc (DGX), RTX Corp (RTX), Synchrony Financial (SYF), Tractor Supply Co (TSCO), United Airlines Holdings Inc (UAL), UnitedHealth Group Inc (UNH), W R Berkley Corp (WRB).
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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Erase Early Gains as Crude Prices Jump on Iran Concerns

Key Points
UnitedHealth Group beat analysts' expectations for revenue and earnings.
The company increased its full-year profit outlook for 2026.
Shares jumped more than 9% as the market opened.
UnitedHealth Group (NYSE: UNH) appears to have put its disappointing 2025 firmly in the rearview mirror. The company posted first-quarter earnings on Tuesday that not only beat analysts' estimates but also prompted it to raise its 2026 profit guidance.
It's a welcome development for the nation's biggest private insurer, which struggled last year with dwindling profits and its first earnings miss since 2008. UnitedHealth Group stock fell 34% in 2025, and about the only good thing that happened to the company was that Berkshire Hathaway, helmed by now-retired CEO Warren Buffett, put it on the map by buying more than 5 million shares of the beaten-down stock.
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UnitedHealth Group stock jumped by more than 9% after the company posted earnings on Tuesday, and the stock was still trading at elevated levels at midday. But I don't think it's too late for investors to buy in.
A look at UnitedHealth Group's earnings
The company's first-quarter report showed UnitedHealth Group posting $111.72 billion in revenue, up 2% from a year ago and better than the $109.57 consensus estimate by analysts. Adjusted earnings per share were $7.23, versus expectations of $6.57 per share.
The company gets a large portion of its revenue from Medicare and Medicaid supplemental plans -- including Medicare Advantage -- as well as health insurance plans for individuals and businesses.
Management noted last year that its problems stemmed from a miscalculation of the charges it would incur for services from physicians and hospitals when it set its 2025 customer premiums. It underwent a series of measures to fix the problem, but those efforts take time -- increasing 2026 premiums, reexamining which markets it wanted to serve, and modernizing internal systems to include cybersecurity and artificial intelligence.
"We have refocused the organization squarely on U.S. healthcare, exiting non-U.S. businesses," CEO Stephen Hemsley said. "We have refreshed nearly half of our top 100 leadership roles. Our accelerated technology and AI investments are showing meaningful potential. And we are actively evolving business practices in areas such as data and processing interoperability and speed, pharmacy practices, prior authorization, product and reporting transparency, and management practices more broadly."
Management increased full-year earnings guidance from $17.10 per share to $17.35 per share, and adjusted earnings guidance from $17.75 per share to $18.25 per share.
UnitedHealth Group and the road ahead
A hallmark of a Warren Buffett stock is finding a great company, with an indispensable business, that's fallen to an appealing price. UnitedHealth Group fits that description to the letter.
Of the five companies with the greatest market share of the Medicaid market -- UnitedHealth Group, Centene, CVS Health, Elevance Health, and Molina Healthcare -- UnitedHealth Group is by far the largest, with a market cap at this writing of $315 billion.
That gives it more resources than the competition -- the company's free cash flow of $16 billion over the last year was more than the combined free cash flow of its four competitors.
UnitedHealth Group appears to be returning to its winning ways. Analysts at Jefferies maintained their "buy" rating for the stock this week, raising the price target from $340 to $373. And 22 of 28 analysts surveyed by Yahoo! Finance have buy ratings, with only one suggesting that investors should sell.
For long-term investors, UnitedHealth Group is a strong buy for me because I see the company continuing to right-size its operations. It will be well-positioned to capitalize on better-than-expected Medicare Advantage payments authorized by the U.S. government for 2027.
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Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends CVS Health and UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UnitedHealth Group Surprises Wall Street. Is It Time to Load Up on the Beaten-Down Buffett Stock?

The S&P 500 Index ($SPX) (SPY) today is up +0.24%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.80%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.20%. June E-mini S&P futures (ESM26) are up +0.25%, and June E-mini Nasdaq futures (NQM26) are up +0.22%.
Stock indexes are moving higher today, with the Dow Jones Industrial Average hitting a 2-month high. Stocks have support on signs that Iran will attend peace talks with the US in Pakistan. Iran said it was sending a team to Pakistan for the negotiations, although it wasn’t clear who or when they would arrive. President Trump said Vice President Vance would resume negotiations in person, “either Tuesday night or Wednesday morning,” and it's "highly unlikely" he will extend the ceasefire with Iran after Wednesday’s deadline.
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Some positive Q1 earnings results from UnitedHealth Group and General Electric are also supporting stock gains.
Stock indexes found support after the stronger-than-expected US March retail sales report suggested that consumer spending is holding up. March retail sales rose +1.7% m/m, stronger than expectations of +1.4% m/m and the biggest increase in a year. Also, March retail sales ex-autos rose +1.9% m/m, stronger than expectations of +1.4% m/m and the biggest increase in 3 years.
Market attention will be on Capitol Hill today as Kevin Warsh appears before the Senate Banking Committee for a confirmation hearing for his nomination as the new Fed Chair. Senator Thom Tillis, a member of the Banking Committee, has said he won’t vote for Warsh until the Department of Justice (DOJ) ends its investigation into a building renovation project at the Fed, which current Fed Chair Powell has said is really a political attack on the Fed over interest rates. Tillis can block Warsh’s nomination from advancing to the full Senate, and neither President Trump nor the DOJ has shown any sign they will close the investigation.
WTI crude oil prices (CLK26) are down more than -1% today on signs that Iran will attend peace talks with the US. The Strait of Hormuz remains essentially closed, threatening to deepen the global energy crisis. The Wall Street Journal reported that the US military is preparing to board Iran-linked oil tankers and seize commercial ships in international waters in the coming days to pressure Iran into reopening the Strait of Hormuz. The blockade could exacerbate global oil and fuel shortages, as about a fifth of the world’s oil and liquefied natural gas transits through the strait. Iran has recently been able to export crude oil during the war, with exports of about 1.7 million bpd in March.
Earnings season continues this week. So far, 81% of the 48 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
The markets are discounting a 1% chance for a +25 bp FOMC rate hike at the April 28-29 policy meeting.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.09%. China's Shanghai Composite rose to a 1-month high and closed up +0.07%. Japan's Nikkei Stock 225 closed up +0.89%.
Interest Rates
June 10-year T-notes (ZNM6) today are down by -7 ticks. The 10-year T-note yield is up +2.6 bp to 4.277%. T-notes are sliding today on a stronger-than-expected US Mar retail sales report. T-note prices are trading on a cautious basis ahead of Keven Warsh’s nomination hearing to be Fed Chair before the Senate Banking Committee. Losses in T-notes are limited as WTI crude oil is down nearly -1% today, which undercuts inflation expectations and supports T-note prices.
T-notes have support on signs that Fed Chair nominee Kevin Warsh will support an independent Fed and prioritize low inflation. Politico reported that Fed Chair nominee Warsh's prepared statement before the Senate Banking Committee later today will say that he is committed to ensuring that the conduct of monetary policy remains "strictly independent" and he is committed to keeping inflation in check, saying price stability is a mandate for the Fed "without excuse or equivocation."
European government bond yields are moving higher today. The 10-year German bund yield is up +0.2 bp to 2.982%. The 10-year UK gilt yield is up +2.9 bp to 4.863%.
The German Apr ZEW survey expectations of economic growth fell -16.7 to a 3.25-year low of -17.2, weaker than expectations of -5.8.
Swaps are discounting a 9% chance of a +25 bp ECB rate hike at its next policy meeting on April 30.
US Stock Movers
UnitedHealth Group (UNH) is up more than +9% to lead health insurance stocks higher after reporting Q1 adjusted EPS of $9.23, well above the consensus of $6.57, and raising its full-year adjusted EPS estimate to above $18.25 from a previous view of $17.75. Humana (HUM) is also up more than +4% on the news, and CVS Health (CVS), Centene (CNC), and Elevance Health (ELV) are up more than +3%.
Crowdstrike Holdings (CRWD) is up more than +2% to lead cybersecurity stocks higher after KeyBanc Capital Markets upgraded the stock to overweight from sector weight with a price target of $525. Also, Zscaler (ZS) and Okta (OKTA) are up more than +2%, and Cloudflare (NET), Palo Alto Networks (PANW), and Fortinet (FTNT) are up more than +1%.
Amazon.com (AMZN) is up more than +2% after it said it is investing an additional $5 billion in Anthropic and may inject $20 billion more over time. Amazon’s suppliers are also climbing on the news, with Astera Labs (ALAB) up more than +6%, and Marvell Technology (MRVL) up more than +2% to lead gainers in the Nasdaq 100. Also, Credo Technology (CRDO) is up more than +1%.
Avis Budget Group (CAR) is up more than +9% amid a short squeeze as two investors, SRS Investment Management and Pentwater Capital Management, own about 71% of the company’s shares. According to S3 Partners data, the company's short interest as a percentage of its free float is currently 62%.
D.R. Horton (DHI) is up more than +8% after reporting Q2 net sales orders of 24,992, better than the consensus of 23,919, and raising its full-year revenue forecast to $34.5 billion from a previous estimate of $33.5 billion to $35.0 billion, stronger than the consensus of $33.4 billion.
Quest Diagnostics (DGX) is up more than +5% after reporting Q1 net revenue of $2.90 billion, better than the consensus of $2.82 billion.
Arrowhead Pharmaceuticals (ARWR) is up more than +3% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $100.
Intel (INTC) is up more than +2% after HSBC upgraded the stock to buy from hold with a price target of $95.
Tractor Supply Co (TSCO) is down more than -8% to lead losers in the S&P 500 after reporting Q1 net sales of $3.59 billion, below the consensus of $3.64 billion.
Prudential Financial (PRU) is down more than -4% after Nikkei reported that former employees of the company’s Gibraltar business are suspected of committing dozens of cases of financial fraud.
Northrop Grumman (NOC) is down more than -3% after forecasting full-year adjusted EPS of $27.40 to $27.90, below the consensus of $27.97.
Merk & Co (MRK) is down more than -2% to lead losers in the Dow Jones Industrials after its Phase 3 trial with Eisai for treatment of advanced renal cell carcinoma did not meet its dual primary endpoints.
Alaska Air Group (ALK) is down more than -1% after forecasting a Q2 adjusted loss per share of -$1.00, much wider than the consensus of -11 cents, and announcing that it will suspend full-year guidance due to higher fuel costs.
Earnings Reports(4/21/2026)
3M Co (MMM), Capital One Financial Corp (COF), Chubb Ltd (CB), Danaher Corp (DHR), DR Horton Inc (DHI), EQT Corp (EQT), Equifax Inc (EFX), General Electric Co (GE), Genuine Parts Co (GPC), Halliburton Co (HAL), Interactive Brokers Group Inc (IBKR), Intuitive Surgical Inc (ISRG), MSCI Inc (MSCI), Northern Trust Corp (NTRS), Northrop Grumman Corp (NOC), Quest Diagnostics Inc (DGX), RTX Corp (RTX), Synchrony Financial (SYF), Tractor Supply Co (TSCO), United Airlines Holdings Inc (UAL), UnitedHealth Group Inc (UNH), W R Berkley Corp (WRB).
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.