Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to program members; health products; an array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, life, disability, and supplemental health insurance benefits. The company operates in the pharmacy services business; and markets and offers pharmacy services, including pharmacy benefit management, as well as home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database, and member services. In addition, it provides healthcare-related services and capabilities, including utilization management, behavioral health, integrated care delivery, palliative care, payment integrity services, subrogation services, and health and wellness programs, as well as services related to data management, information technology, and business operations. Further, the company is involved in the National Government Services business. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brand names. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is headquartered in Indianapolis, Indiana.

Elevance Health, Inc.

The S&P 500 Index ($SPX) (SPY) on Tuesday closed up +0.27%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.43%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.33%. September E-mini S&P futures (ESU25) rose +0.28%, and September E-mini Nasdaq futures (NQU25) rose +0.36%.
Stock indexes on Tuesday settled higher after the preliminary revision to US payrolls in the year through March showed the number of jobs was fewer than previously stated, bolstering the outlook for accelerated interest rate cuts by the Fed. Stocks remain underpinned by the prospect of a more accommodative Fed, as the markets have fully priced in a 25 bp rate cut by the Fed at next week’s FOMC meeting and priced in a 10% chance for a 50 bp rate cut.
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M&A activity also supported stocks on Tuesday after Anglo American agreed to acquire Teck Resources, creating a more than $50 billion company. Also, Novartis AG is buying Tourmaline Bio for about $1.4 billion.
The preliminary benchmark payroll revisions to US payrolls in the year through March 2025 showed -911,000 fewer jobs than previously stated, a wider loss than expectations of -700,000 and the largest markdown in job growth since at least 2000, a sign of a weaker US labor market.
Market focus this week will be on any trade or tariff news. On Wednesday, Aug PPI final demand is expected to climb +3.3% y/y, unchanged from July, and Aug PPI ex-food and energy is expected to ease to +3.5% y/y from +3.7% y/y in July. On Thursday, Aug CPI is expected to climb to +2.9% y/y from +2.7% y/y in July, and Aug CPI ex-food and energy is expected to increase +3.1% y/y, unchanged from July. Also, weekly initial unemployment claims are expected to fall by -3,000 to 234,000. On Friday, the University of Michigan Sep consumer sentiment index is expected to slip -0.2 to 58.0.
The markets are now pricing in a 10% chance of a 50 bp rate cut at the upcoming FOMC meeting on Sep 16-17, versus the previous expectations of a zero chance of that 50 bp rate cut. After the fully expected -25 bp rate cut at the Sep 16-17 meeting, the markets are now discounting a 75% chance of a second -25 bp rate cut at the Oct 28-29 meeting, up from a 54% chance as of late Thursday. The markets are now pricing in an overall -72 bp rate cut in the federal funds rate by year-end to 3.66% from the current 4.38% rate.
Regarding tariffs, a federal appeals court ruled late last month that President Trump exceeded his authority by imposing global tariffs without Congressional approval, but the court let the tariffs remain in place while appeals continue. The US Court of Appeals for the Federal Circuit Court said, “The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.” The case now appears to be headed to the Supreme Court for a final decision. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Overseas stock markets settled mixed on Tuesday. The Euro Stoxx 50 rose to a 1-week high and closed up +0.11%. China’s Shanghai Composite closed down -0.51%. Japan’s Nikkei Stock 225 dropped from a record high and closed down -0.42%.
Interest Rates
December 10-year T-notes (ZNZ5) on Tuesday closed down by -6.5 ticks. The 10-year T-note yield rose by +3.0 bp to 4.070%. Strength in stocks on Tuesday curbed safe-haven demand for T-notes. Also, supply pressures are weighing on T-notes as the Treasury will auction $119 billion of T-notes and T-bonds this week.
T-notes recovered some of their losses on solid demand for the Treasury’s $58 billion auction of 3-year T-notes that had a bid-to-cover ratio of 2.73, above the 10-auction average of 2.59. T-notes also have support after Tuesday’s larger-than-expected downward revision to annual US payroll growth and last Friday’s weak US unemployment report boosted the chances to 100% for a 25 bp Fed rate cut at next week’s FOMC meeting.
Concerns about Fed independence are negatively impacting T-note prices due to President Trump’s attempt to fire Fed Governor Cook and Stephen Miran’s intention to hold a Fed Governor position while remaining technically in his White House role on the Council of Economic Advisors.
European government bond yields on Tuesday moved higher. The 10-year German bund yield rose +1.7 bp to 2.659%. The 10-year UK gilt yield rose +1.8 bp to 4.623%.
French Jul manufacturing production fell -1.7% m/m, weaker than expectations of -1.2% m/m and the largest decline in 14 months.
Swaps are discounting no chance for a -25 bp rate cut by the ECB at Thursday’s policy meeting.
US Stock Movers
UnitedHealth Group (UNH) closed up more than +8% to lead gainers in the S&P 500 and Dow Jones Industrials and underpin health insurance stocks after saying it expects 78% of its Medicare Advantage members to be in highly rated 4-star or higher plans that earn bonus payments next year. Also, Centene (CNC) closed up more than +7% and Molina Healthcare (MOH) closed up more than +3%. In addition, Elevance Health (ELV) closed up more than +2% and CVS Health (CVS) closed up more than +1%
Strength in chip makers also supported gains in the broader market. Advanced Micro Devices (AMD) and Micron Technology (MU) closed up more than +2%. Also, Nvidia (NVDA), Marvell Technology (MRVL), ARM Holdings Plc (ARM), and ASML Holding NV (ASML) closed up more than +1%. In addition, KLA Corp (KLAC) closed up +0.96% and Applied Materials (AMAT) closed up +0.89%.
Tourmaline Bio (TRML) closed up more than +57% after Novartis AG agreed to buy the company for $1.4 billion or about $48 a share.
Nebius Group NV (NBIS) closed up more than +49% after announcing it will provide Microsoft access to GPU infrastructure capacity at its new data center in Vineland, New Jersey, over the next five years.
Brighthouse Financial (BHF) closed up more than +12% after the Financial Times reported that Aquarian Holdings is in late-stage talks with two Middle Eastern investors to finance a takeover of the company.
Atlassian Corp (TEAM) closed up more than +5% to lead gainers in the Nasdaq 100 after announcing it is ending its data center product over the coming three years and will move customers to its cloud platform.
CoreWeave (CRWV) closed up more than +7% after launching CoreWeave Ventures, a new initiative committed to backing founders and companies developing platforms and technologies shaping the AI ecosystem.
Humana (HUM) closed down more than -12% to lead losers in the S&P 500 after a post on LinkedIn, cited by analysts at Leerink Partners, stated that changes in the thresholds for Medicare quality ratings that pay bonuses to health plans are harder to get, and Humana receives most of its revenue from selling private Medicare Advantage plans.
Albemarle (ALB) closed down more than -11% as lithium stocks retreated on a report from Chinese state media Securities Times that said CATL’s lithium mine, which had suspended production last month, will resume production soon.
SailPoint (SAIL) closed down more than -7% after forecasting Q3 adjusted income from operations of $42.5 million-$43.5 million, weaker than the consensus of $50.4 million.
Fox Corp (FOXA) closed down more than -6% after trusts established for three of Rupert Murdoch’s children are selling 16.9 million shares of Class B stock.
Home builders and home building suppliers are falling today on long liquidation and profit taking following the sharp rally in the stocks over the past three months. Builders FirstSource (BLDR) closed down more than -5%. Also, PulteGroup (PHM), DR Horton (DHI), and Lennar (LEN) closed down more than -3%, and Toll Brothers (TOL) closed down more than -2%.
Freeport-McMoRan (FCX) closed down more than -5% after announcing that mining operations at the Central Papua, Indonesia Grasberg minerals district had been suspended to evacuate workers from an underground mine.
News Corp (NWS) closed down more than -4% after announcing it will offer 14.1 million shares of Class B common stock.
Earnings Reports(9/10/2025)
Barnes & Noble Education Inc (BNED), Chewy Inc (CHWY), Daktronics Inc (DAKT), Frequency Electronics Inc (FEIM), Oxford Industries Inc (OXM), PACS Group Inc (PACS).
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.

Stocks Settle Higher on Hopes of Accelerated Fed Rate Cuts

The largest health insurer in the United States, UnitedHealth Group Incorporated UNH, is increasingly incorporating artificial intelligence (AI) into its operations to transform the way healthcare is provided and managed. With its extensive data from insurance claims, provider networks and patient interactions, the company is able to implement AI tools on a large scale.
As costs continue to climb and patient expectations evolve, UNH is integrating AI into both its insurance and care delivery sectors, with the goal of boosting efficiency while enhancing patient outcomes at the same time. AI-powered systems are making it easier for healthcare providers to spot high-risk patients sooner, customize care plans and cut down on hospital admissions.
In the space of insurance, AI is playing a crucial role for UNH by making claims processing smoother and spotting fraud with high accuracy. Internal analysis of the company found that the system could save around 4,500 to 5,000 staff hours each year by cutting down on the time spent searching for information.
However, the healthcare sector is deeply rooted in human judgment, and concerns like data privacy, algorithmic bias and the risk of becoming overly dependent on automation can’t be overlooked. If UNH can strike a balance between innovation and trust, ensuring that AI tools are transparent and supportive rather than replacing healthcare professionals’ decisions, it could serve as a blueprint for the broader healthcare system while supporting the company’s long-term growth through cost reduction.
How Are Competitors Faring?
Some of UNH’s major competitors in the AI-enabled healthcare solutions are Elevance Health, Inc. ELV and Humana Inc. HUM.
Elevance Health’s AI tool speeds up the prior authorization process by aligning necessary documentation with medical policies, helping patients receive faster approvals. Elevance Health’s system undergoes thorough evaluations to check for bias and performance.
Humana focuses on using AI ethically to improve patient experiences, enhance care quality and achieve better health outcomes, while ensuring human involvement in all clinical decision-making processes. By partnering with Google Cloud, Humana utilizes Health Insurance Portability and Accountability Act-compliant infrastructure and a secure data system, allowing customers to maintain complete control over their data.
UnitedHealth’s Price Performance, Valuation & Estimates
Shares of UNH have declined 37.7% in the year-to-date period compared with the industry’s fall of 29.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18.44, above the industry average of 15.23. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2025 earnings is pegged at $16.21 per share, implying a 41.4% drop from the year-ago period.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #5 (Strong Sell).
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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.

UnitedHealth & AI: Can Technology Redefine Healthcare Efficiency?

Looking at the universe of stocks we cover at Dividend Channel, on 9/10/25, Elevance Health Inc (Symbol: ELV), Pathward Financial Inc (Symbol: CASH), and UMB Financial Corp (Symbol: UMBF) will all trade ex-dividend for their respective upcoming dividends. Elevance Health Inc will pay its quarterly dividend of $1.71 on 9/25/25, Pathward Financial Inc will pay its quarterly dividend of $0.05 on 10/1/25, and UMB Financial Corp will pay its quarterly dividend of $0.40 on 10/1/25. As a percentage of ELV's recent stock price of $313.64, this dividend works out to approximately 0.55%, so look for shares of Elevance Health Inc to trade 0.55% lower — all else being equal — when ELV shares open for trading on 9/10/25. Similarly, investors should look for CASH to open 0.07% lower in price and for UMBF to open 0.32% lower, all else being equal.
When an S&P 1500 component reaches 20 years of dividend increases, it becomes a contender to join the elite "Dividend Aristocrats" index. Elevance Health Inc (Symbol: ELV) is a "future dividend aristocrats contender," with 14+ years of increases.
Below are dividend history charts for ELV, CASH, and UMBF, showing historical dividends prior to the most recent ones declared.
Elevance Health Inc (Symbol: ELV):
Pathward Financial Inc (Symbol: CASH):
UMB Financial Corp (Symbol: UMBF):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 2.18% for Elevance Health Inc, 0.26% for Pathward Financial Inc, and 1.29% for UMB Financial Corp.
Free Report: Top 8%+ Dividends (paid monthly)
In Monday trading, Elevance Health Inc shares are currently up about 1.8%, Pathward Financial Inc shares are down about 2.5%, and UMB Financial Corp shares are up about 0.7% on the day.
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.

Ex-Dividend Reminder: Elevance Health, Pathward Financial and UMB Financial

The S&P 500 Index ($SPX) (SPY) today is up by +0.31%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +0.27%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.28%. September E-mini S&P futures (ESU25) are up +0.29%, and September E-mini Nasdaq futures (NQU25) are up +0.26%.
Stock indexes are moving higher today as bond yields decline on expectations that the Fed will start cutting interest rates as soon as this month. Today’s weak US labor market reports knocked bond yields lower and reinforced speculation that the Fed will cut rates as soon as the September 16-17 FOMC meeting after today’s Aug ADP employment change rose less than expected and weekly jobless claims rose to a 10-week high. The 10-year T-note yield fell to a 4-month low of 4.17%, and the swaps market shows the chances of a Fed rate cut this month rising to 95%.
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Stocks maintained their gains on signs of strength in the service sector after the Aug ISM services index expanded at the fastest pace in six months.
Meanwhile, stocks are being undercut by weakness in chipmakers, led by a -5% fall in Texas Instruments after CFO Lizardi cautioned that the recovery in chip demand is not quite snapping back as some have hoped.
The Aug ADP employment change rose +54,000, weaker than expectations of +68,000.
US weekly initial unemployment claims rose by +8,000 to a 10-week high of 237,000, showing a weaker labor market than expectations of 230,000.
US Q2 nonfarm productivity was revised upward to +3.3% from the previously reported +2.4%, better than expectations of +2.7%. Q2 unit labor costs were revised downward to +1.0% from the previously reported +1.6%, weaker than expectations of +1.2%.
The US Aug ISM services index rose +1.9 to 52.0, stronger than expectations of 51.1 and the strongest pace of expansion in six months.
Looking ahead to Friday’s US economic reports, Aug nonfarm payrolls are expected to rise by +75,000, and the Aug unemployment rate is expected to rise by 0.1 to 4.3%. Aug average hourly earnings are expected to increase +0.3% m/m and +3.7% y/y.
Regarding tariffs, a federal appeals court ruled late last Friday that President Trump exceeded his authority by imposing global tariffs without Congressional approval, but the court let the tariffs remain in place while appeals continue. The US Court of Appeals for the Federal Circuit Court said, “The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.” The case now appears to be headed to the Supreme Court for a final decision. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances of a -25 bp rate cut at 95% at the next FOMC meeting on September 16-17. The markets are discounting the chances at 53% for a second -25 bp rate cut at the following meeting on October 28-29.
Overseas stock markets today are mixed. The Euro Stoxx 50 is up +0.31%. China’s Shanghai Composite fell to a 2-week low and closed down -1.25%. Japan’s Nikkei Stock 225 closed up +1.53%.
Interest Rates
December 10-year T-notes (ZNZ5) today are up +3 ticks, and the 10-year T-note yield is down -1.9 bp to 4.197%.
Dec T-notes climbed to a 4.75-month high today, and the 10-year T-note yields fell to a 4-week low of 4.168%. Signs of a slowdown in the US labor market are bullish for T-notes after today’s weaker-than-expected ADP employment report and the rise in weekly initial unemployment claims to a 10-week high. The labor market weakness has boosted the chances of a Fed rate cut at the September 16-17 FOMC meeting to 95%, according to the swaps market. Also, today’s upward revision to Q2 nonfarm productivity and downward revision to Q2 unit labor cost are supportive for T-note prices. In addition, T-notes garnered support from today’s 1% fall in WTI crude prices to a 2-week low, which reduced inflation expectations as the 10-year breakeven inflation rate fell to a 1.5-week low of 2.392%.
T-notes fell back from their best levels after the Aug ISM services index rose more than expected to a 6-month high, a hawkish factor for Fed policy.
European government bond yields today are moving lower. The 10-year German bund yield is down -2.4 bp to 2.717%. 10-year UK gilt yield is down -2.0 bp to 4.728%.
Eurozone July retail sales fell -0.5% m/m, weaker than expectations of -0.3% m/m and the biggest decline in 13 months.
Swaps are discounting the chances at 1% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Homebuilders are climbing today after the 10-year T-note yield fell to a 4-month low, a bullish factor for housing demand. PulteGroup (PHM) and Toll Brothers (TOL) are up more than +3%. Also, Lennar (LEN) and DR Horton (DHI) are up more than +2%.
Hewlett Packard Enterprise (HPE) is up more than +5% to lead gainers in the S&P 500 after reporting Q3 net revenue of $9.14 billion, stronger than the consensus of $8.65 billion.
T. Rowe Price Group (TROW) is up more than +5% after Goldman Sachs said it will invest as much as $1 billion in the company and team up with the asset manager to sell private-market products to retail investors.
American Eagle Outfitters (AEO) is up more than +31% after reporting Q2 net revenue of $1.28 billion, better than the consensus of $1.23 billion.
Ciena (CIEN) is up more than +23% after reporting Q3 adjusted EPS of 67 cents, stronger than the consensus of 53 cents.
Credo Technology Group (CRDO) is up more than +10% after reporting Q1 adjusted EPS of 52 cents, well above the consensus of 35 cents.
Amazon.com (AMZN) is up more than +2% to lead gainers in the Nasdaq 100 and Dow Jones Industrials after Business Insider reported the company is testing a new AI-powered workspace software called Quick Suite.
Genuine Parts (GPC) is up more than +2% after appointing two new directors to its board in cooperation with Elliott Investment Management.
Salesforce (CRM) is down more than -6% to lead losers in the Dow Jones Industrials after forecasting Q3 revenue of $10.24 billion to $10.29 billion, the midpoint below the consensus of $10.29 billion.
Texas Instruments (TXN) is down more than -5% to lead losers in the Nasdaq 100 and weigh on chip makers after CFO Lizardi cautioned that the recovery in chip demand is not quite snapping back as some have hoped. Also, NXP Semiconductors NV (NXPI) and GlobalFoundries (GFS) are down more than -2%. In addition, Advanced Micro Devices (AMD) is down more than -1%, and Analog Devices (ADI) is down -0.71%.
Health insurance stocks are sliding today after executives from Elevance Health said at the Wells Fargo Health Care Conference that it no longer expects Medicaid margins to improve in the second half of the year. As a result, Elevance Health (ELV), Centene (CNC), and Molina Healthcare (MOH) are down more than -4%.
Caleres (CAL) is down more than -11% after reporting Q2 gross margin of 43.4%, below the consensus of 44.6%.
Gitlab Inc (GTLB) is down more than -9% after forecasting 2026 revenue of $936 million to $942 million, the midpoint below the consensus of $940 million.
Science Applications International (SAIC) is down more than -4% after reporting Q2 revenue of $1.77 billion, weaker than the consensus of $1.86 billion, and cutting its 2026 revenue forecast to $7.25 billion-$7.33 billion from a previous forecast of $7.60 billion-$7.75 billion, well below the consensus of $7.63 billion.
Old Dominion Freight Line (ODFL) is down more than -2% after reporting less-than-truckload (LTL) tons per day for Aug fell -9.2% y/y.
Earnings Reports(9/4/2025)
Broadcom Inc (AVGO), Ciena Corp (CIEN), Copart Inc (CPRT), Docusign Inc (DOCU), Guidewire Software Inc (GWRE), Lululemon Athletica Inc (LULU), Samsara Inc (IOT), Science Applications International (SAIC), Toro Co/The (TTC), UiPath Inc (PATH).
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.

Stocks Supported by Fed Rate Cut Expectations

UnitedHealth Group Incorporated UNH is again under scrutiny after questions were raised about how it handled loans to healthcare providers in the wake of the 2024 Change Healthcare cyberattack. UNH extended billions in temporary loans to keep providers afloat as the breach disrupted claims processing. However, lawmakers now suggest that the company has taken an aggressive stance on repayments, demanding quick payback or threatening to withhold payment on their insurance claims.
Senators Elizabeth Warren and Ron Wyden have voiced concerns that these practices may have added pressure on doctors and hospitals that were already financially strained through no fault of their own. This issue will likely put UNH at the center of another regulatory storm. Healthcare providers are its essential partners and the perception of repayment pressures following a crisis may weigh on confidence in the insurer’s role as a system stabilizer.
It also comes at a time when UNH is already facing probes from the Justice Department into Medicare billing practices, reimbursement policies and OptumRx pharmacy benefit operations. Together, these matters could prompt a broader debate around the company’s size and influence within healthcare.
Publicly, this may add to concerns that UnitedHealth is placing financial priorities ahead of provider support, which could create unease among policymakers, doctors and patients. While the immediate impact on revenues may be limited, the situation could create long-term challenges around regulatory scrutiny and the company’s reputation.
UNH, along with peers such as Centene Corporation CNC and Elevance Health, Inc. ELV, is also contending with rising medical costs, which have already led to trimmed 2025 guidance. UnitedHealth’s medical care ratio has increased from 83.2% in 2023 to 85.5% in 2024 and averaged 87.1% in the first half of 2025.
Centene projects its HBR to rise to 93.5% in the second half of 2025 compared with 89.4% in the last year. Similarly, Elevance’s benefit expense ratio is expected to reach 90% in 2025, up from 88.5% witnessed in 2024.
UnitedHealth’s Price Performance, Valuation and Estimates
Shares of UNH have lost 38.7% in the year-to-date period compared with the industry’s decline of 30.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18.14, still up from the industry average of 15.01. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2025 earnings is pegged at $16.21 per share, implying a 41.4% drop from the year-ago period.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #5 (Strong Sell).
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.
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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.

Cyberattack Hangover: Senators Question UnitedHealth's Loan Playbook

CVS Health’s CVS Health Care Benefits (“HCB”) segment continued its strong run in the second quarter of 2025. Revenues grew more than $36 billion, up more than 11% from the prior year, driven mainly by increases in the government businesses, reflecting the impact of the 2022 Inflation Reduction Act on the Medicare Part D program. Notably, adjusted operating income jumped nearly 40%, benefiting from the favorable year-over-year impact of changes to individual exchange risk adjustment estimates, stronger performance in government businesses and higher positive prior-period development.
Earlier this year, CVS Health announced it would exit the individual exchange business in 2026, where Aetna independently runs ACA plans. Despite years of effort, management concluded that there is no near- or long-term way to materially improve performance and projects $350 million-$400 million in variable losses from this business for 2025. Medical membership as of June 30 dropped sequentially to 26.7 million, primarily due to expected declines following the expiration of a premium grace period shortly after the first-quarter end.
CVS recorded a $471 million premium deficiency reserve (PDR) related to its Group Medicare Advantage (MA) product line through the remainder of the 2025 coverage year. This raised the quarter’s medical benefit ratio to 89.9%, reflecting a 30-basis-point increase from last year. The company’s Medicare business gained from favorability within the supplemental benefit offerings and Part D in individual MA business, even as trends remain elevated.
Performance across all other lines of business tracked mostly with CVS’ expectations, with no changes to the prior PDR established for individual exchange business. Days' claims payable were 40.9 days, down approximately 2 days sequentially, led by a higher mix of pharmacy costs, partially offset by the impact of the group MA PDR. CVS remains confident in the adequacy of its reserves.
Update From CVS Health Rivals
Elevance Health ELV posted second-quarter 2025 operating revenues of $41.6 billion in its Health Benefits segment, up 12% year over year. This was mainly driven by higher premium yields, recently closed acquisitions and growth in its Medicare Advantage membership, partly offset by lower Medicaid membership. ELV’s medical membership totaled approximately 45.6 million as of June 30, a decline of 212,000 sequentially, due to lower Medicaid membership and attrition resulting from lower effectuation rates in the Individual ACA business.
Humana’s HUM performance in the second quarter was led by CenterWell pharmacy, along with better-than-expected individual MA membership. Humana has taken steps to simplify and streamline the prior authorization process, building on the recent commitments made by multiple health plans. In addition, Humana continues its strategic expansion in Medicaid with the launch of its Virginia contract, bringing its active footprint to 10 states, with three more states awarded in pending.
CVS Stock Performance, Valuation and Estimates
Over the past year, CVS Health shares have risen 27.5% against the industry’s 16.7% fall.
Image Source: Zacks Investment Research
In terms of valuation, CVS Health is trading at a forward five-year earnings multiple of 10.65, which is lower than the industry average of 15.33. The stock has a Value Score of A.
Image Source: Zacks Investment Research
The consensus estimates for the company’s 2025 and 2026 earnings are showing a bullish trend.
Image Source: Zacks Investment Research
CVS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
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CVS Health Sees Momentum in HCB Segment Amid Utilization Pressure

The S&P 500 Index ($SPX) (SPY) on Friday closed down by -0.64%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down by -0.20%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -1.22%. September E-mini S&P futures (ESU25) fell -0.68%, and September E-mini Nasdaq futures (NQU25) fell -1.31%.
Stock indexes retreated on Friday, weighed down by weakness in technology stocks. Marvell Technology tumbled more than -18% to lead semiconductor stocks lower after reporting that Q2 data center revenue missed estimates. Also, Dell Technologies fell more than -8% to lead computer hardware stocks lower after reporting tighter profit margins on AI servers.
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Stocks added to their losses after the August MNI Chicago PMI fell more than expected and after the University of Michigan's US August consumer sentiment index was unexpectedly revised lower. Also, inflation pressures remain sticky after the US July core PCE price index, the Fed's preferred inflation gauge, rose by the most in five months.
On the positive side for stocks, US consumer demand remains resilient after July personal spending rose by the most in four months. Also, the University of Michigan's inflation expectations were unexpectedly revised lower. In addition, dovish comments from Fed Governor Waller and San Francisco Fed President Daly were bullish for stocks as they signaled their support for Fed rate cuts.
US July personal spending rose +0.5% m/m, the most in four months, and right on expectations. July personal income rose +0.4% m/m, right on expectations.
The US July core PCE price index, the Fed's preferred inflation gauge, rose to a 5-month high of +2.9% y/y from +2.8% y/y in June, right on expectations but well above the Fed's 2% inflation target.
The US Aug MNI Chicago PMI fell -5.6 to 41.5, weaker than expectations of 46.0.
The University of Michigan's Aug US consumer sentiment index was revised lower by -0.4 to 58.2, weaker than expectations of no change at 58.6.
The University of Michigan Aug 1-year inflation expectations were unexpectedly revised slightly lower by -0.1 to 4.8%, weaker than expectations of an upward revision to 5.0%. The Aug 5-10 year inflation expectations were revised lower by -0.4 to 3.5% from the previously reported 3.9%.
Late Thursday, Fed Governor Christopher Waller stated that he supports a 25-bp rate cut at the September FOMC meeting and anticipates additional rate cuts over the next three to six months. He said, "With underlying inflation close to 2%, market-based measures of longer-term inflation expectations firmly anchored, and the chances of an undesirable weakening in the labor market increased, proper risk management means the FOMC should be cutting the policy rate now."
San Francisco Fed President Mary Daly signaled she's open to lower interest rates soon, saying, "It will soon be time to recalibrate policy to better match our economy." She added that tariff-related price increases "will be a one-off" and it "will take time before we know that for certain, but we can't wait for perfect certainty without risking harm to the labor market."
Regarding tariffs, President Trump on Monday threatened to impose new tariffs and export restrictions on advanced technology and semiconductors in retaliation against other nations' digital services taxes that hit American companies. Last week, Mr. Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect last Monday and did not exclude goods already in transit.
In other recent tariff news, Mr. Trump on August 13 extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 88% at the next FOMC meeting on September 16-17. The markets are discounting the chances at 55% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With Q2 earnings season winding down, over 95% of S&P 500 firms having reported Q2 earnings, about 82% of companies exceeded profit estimates.
Overseas stock markets on Friday settled mixed. The Euro Stoxx 50 fell to a 2-week low and closed down -0.83%. China's Shanghai Composite closed up +0.37%. Japan's Nikkei Stock 225 closed down -0.26.
Interest Rates
September 10-year T-notes (ZNU5) Friday closed down -2.5 ticks, and the 10-year T-note yield rose +2.4 bp to 4.227%.
Sep T-notes posted modest losses on Friday after the US July core PCE price index, the Fed's preferred inflation gauge, rose to a 5-month high of +2.9% y/y. T-notes also have carryover pressure from weakness in 10-year German bunds after the German Aug CPI rose more than expected.
Losses in T-notes were limited after Fed Governor Christopher Waller said he supports a 25 bp rate cut at the September FOMC meeting and anticipates additional rate cuts over the next three to six months. Also, the University of Michigan's Aug inflation expectations were revised lower, a dovish factor for Fed policy.
European government bond yields on Friday moved higher. The 10-year German bund yield rose +2.9 bp to 2.724%. 10-year UK gilt yield rose +2.2 bp to 4.722%.
The ECB's July 1-year CPI expectations remained unchanged from June at +2.6%, which is stronger than the expected +2.5%. The ECB Jul 3-year CPI expectations unexpectedly climbed to +2.5%, stronger than expectations of no change at +2.4%.
German Aug unemployment unexpectedly fell by -9,000, showing a stronger labor market than expectations of +10,000.
German Jul retail sales fell -1.5% m/m, weaker than expectations of no change and the biggest decline in almost two years.
German Aug CPI (EU harmonized) rose +2.1% y/y, stronger than expectations of +2.0% y/y.
Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Chipmakers sold off on Friday, led by an -18% plunge in Marvell Technology (MRVL) to lead losers in the Nasdaq 100 after it reported Q2 data center revenue of $1.49 billion, below the consensus of $1.52 billion. Also, Lam Research (LRCX) closed down more than -4%, and Broadcom (AVGO), Nvidia (NVDA), and Advanced Micro Devices (AMD) closed down more than -3%. In addition, ARM Holdings Plc (ARM), ASML Holding NV (ASML), Applied Materials (AMAT), KLA Corp (KLAC), Intel (INTC), ON Semiconductor Corp (ON), and Micron Technology (MU) all closed down by more than 2%.
Dell Technologies (DELL) closed down more than -8% to lead losers in the S&P 500, and makers of computer hardware are lower after reporting Q2 operating income of $2.28 billion, below the consensus of $2.30 billion. Also, Super Micro Computer (SMCI) closed down more than -5% and Hewlett Packard Enterprise (HPE) closed down more than -2%.
Ulta Beauty (ULTA) closed down more than -7% despite reporting better-than-expected Q2 net sales after it warned of a potential pullback by consumers.
Caterpillar (CAT) closed down more than -3% to lead losers in the Dow Jones Industrials after warning that it faces a larger-than-anticipated tariff headwind of as much as $1.8 billion this year.
Dollar General (DG) closed down more than -2% despite reporting better-than-expected Q2 EPS after it said it expects "more pressure" in selling, general, and administrative (SG&A) expenses in Q3 and warned of tougher gross margin comparison in Q4.
Cryptocurrency-exposed stocks fell Friday after the price of Bitcoin (^BTCUSD) dropped more than -3% to a 7-week low. As a result, Galaxy Digital (GLXY) closed down more than -4%, and Coinbase Global (COIN) and Strategy (MSTR) closed down more than -1%.
Autodesk (ADSK) closed up more than +9% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 net revenue of $1.76 billion, better than the consensus of $1.72 billion, and forecasting Q3 revenue of $180 billion-$1.81 billion, stronger than the consensus of $1.77 billion.
Ambarella (AMBA) closed up more than +16% after reporting Q2 adjusted EPS of 15 cents, well above the consensus of 6 cents, and raising its 2026 revenue growth estimate to 31%-35% from a May forecast of +19%-25%.
Affirm Holdings (AFRM) closed up more than +10% after reporting Q4 revenue of $876.4 million, well above the consensus of $838.6 million.
SentinelOne (S) closed up more than +6% after raising its 2026 revenue forecast to $998 million-$1 billion from a previous forecast of $996 million-$1 billion.
Celsius Holdings (CELH) closed up more than +5% after PepsiCo increased its stake in the company to approximately 11% on an as-converted basis and will nominate an additional director to serve on Celsius Holdings' board of directors.
Managed healthcare stocks gained on Friday. Molina Healthcare (MOH) closed up more than +3%, and Elevance Health (ELV) and Centene (CNC) closed up more than +2%. Also, UnitedHealth Group (UNH) closed up more than +2% to lead gainers in the Dow Jones Industrials. In addition, Humana (HUM) and CVS Health (CVS) closed up more than +1%.
Earnings Reports(9/2/2025)
Academy Sports & Outdoors Inc (ASO), HealthEquity Inc (HQY), Signet Jewelers Ltd (SIG), Zscaler Inc (ZS).
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.

Stocks Settle Lower as Tech Shares Selloff

Elevance Health, Inc. ELV, a well-known health insurer in the United States, is continuously focusing on redefining itself beyond a traditional health insurer into a vast healthcare solutions provider. By forming strategic partnerships and alliances, the company is actively constructing relationships with care management organizations, technology platforms and value-based networks. It aims to develop a more patient-focused and integrated care model that meets the needs of individuals.
Elevance Health is expanding into areas like primary care, digital health and pharmacy services. This expansion aims to provide members with insurance coverage along with holistic models that give access to address the wider factors affecting health, including access to preventive services, behavioral health and social help.
These partnerships are designed to reduce expensive hospitalizations and emergency room visits. ELV is also utilizing AI-enabled platforms and telehealth services to provide direct care at members’ homes, making healthcare more accessible while reducing administrative costs. Recently, it integrated Food as Medicine into its care model to reduce food and nutrition insecurities while enhancing chronic disease management and preventive health outcomes.
With these initiatives, ELV can gain more members and retain customers. The company’s Medicare Advantage memberships improved 11% year over year in the second quarter of 2025, while individual membership grew 5.2%. In the same quarter, its total revenues rose 13.4% year over year.
Still, there will be challenges, as integrating various services into one place demands strong coordination. If the company can balance growth, trust and execution, it might indeed serve as a blueprint for the future of healthcare.
How Are Competitors Faring?
Some of ELV’s competitors in the value-based care space are UnitedHealth Group Incorporated UNH and Humana Inc. HUM.
With the help of its Optum division, UnitedHealth Group aims to reduce hospital admissions, enhance chronic condition management and improve patient satisfaction, which plays a crucial role in shaping outcomes and managing costs. In the first half of 2025, UnitedHealth Group reported 5.8% year-over-year growth in revenues in its Optum business.
Humana also delivers services like pharmacy, primary care and home health solutions, which are designed to improve the overall healthcare experience. Humana’s total adjusted revenues rose 9.9% year over year in the first half of 2025.
Elevance Health’s Price Performance, Valuation & Estimates
Shares of ELV have lost 14.9% in the year-to-date period compared with the industry’s decline of 0.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, Elevance Health trades at a forward price-to-earnings ratio of 9.88, down from the industry average of 15.23. ELV has a Value Score of B at present.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Elevance Health’s 2025 earnings is pegged at $29.88 per share, implying a 9.6% decline from the year-ago period.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #5 (Strong Sell).
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Elevance 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.

Is ELV's Push Beyond Insurance a Blueprint for the Healthcare Future?

Below is Validea's guru fundamental report for ELEVANCE HEALTH INC (ELV). Of the 22 guru strategies we follow, ELV rates highest using our Low PE Investor model based on the published strategy of John Neff. This strategy looks for firms with persistent earnings growth that trade at a discount relative to their earnings growth and dividend yield.
ELEVANCE HEALTH INC (ELV) is a large-cap value stock in the Insurance (Accident & Health) industry. The rating using this strategy is 98% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of ELEVANCE HEALTH INC
More Information on John Neff
About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect. He was mild-mannered and low-key, and the same might be said of the Windsor Fund that he managed for more than three decades. In fact, Neff himself described the fund as "relatively prosaic, dull, [and] conservative." There was nothing dull about his results, however. From 1964 to 1995, Neff guided Windsor to a 13.7 percent average annual return, easily outpacing the S&P 500's 10.6 percent return during that time. That 3.1 percentage point difference is huge over time -- a $10,000 investment in Windsor (with dividends reinvested) at the start of Neff's tenure would have ended up as more than $564,000 by the time he retired, more than twice what the same investment in the S&P would have yielded (about $233,000). Considering the length of his tenure, that track record may be the best ever for a manager of such a large fund.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ELV Factor-Based Stock Analysis

The U.S. Department of Justice’s criminal probe into UnitedHealth Group Incorporated UNH is broader than previously reported, per Bloomberg. While investigators had already been looking at its Medicare Advantage billing practices, they are also examining Optum Rx, the company’s pharmacy benefit manager (PBM), and how UnitedHealth pays physicians. These additional lines of inquiry show that the scrutiny extends well beyond what was initially understood.
UnitedHealth has not been accused of any wrongdoing yet and says it is cooperating with both civil and criminal requests while standing by its practices. Even so, the widening investigation has unsettled investors.
The review of physician payments suggests concern about broader reimbursement practices. Overall, the current administration has already targeted PBMs in its broader effort to reduce prescription drug costs. Together, the new details signal heightened legal and regulatory risk for the nation’s largest health insurer.
Optum Rx, one of the nation’s largest PBMs, delivered $5.8 billion in adjusted operating income in 2024 and $2.8 billion in the first half of 2025. The broader Optum division gives UnitedHealth valuable diversification at a time when escalating medical costs are pressuring its core insurance business. Any regulatory hit to Optum could therefore carry outsized consequences for the company. UnitedHealth’s medical care ratio — a key measure of costs as a percentage of premiums — has already climbed from 83.2% in 2023 to 85.5% in 2024, and further to 87.1% in the first half of 2025.
Peers Suffering From Rising Medical Costs Trend Too
UnitedHealth’s peers, including Centene Corporation CNC and Elevance Health, Inc. ELV, are also grappling with rising medical costs, which have already pushed them to trim their 2025 guidance.
Centene lowered its adjusted EPS outlook to $1.75 for 2025, significantly down from the previous estimate of $7.25. It now projects its HBR to spike to 93.5% in the second half of the year compared with 89.4% last year. Similarly, Elevance reduced its adjusted EPS forecast to $30, below the prior $34.15–$34.85 range. ELV’s benefit expense ratio is set to reach 90% in 2025, up from 88.5% witnessed in 2024.
UnitedHealth’s Price Performance, Valuation and Estimates
Shares of UNH have lost 40.6% in the year-to-date period compared with the industry’s decline of 31.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 17.61, still up from the industry average of 14.83. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2025 earnings is pegged at $16.21 per share, implying a 41.4% drop from the year-ago period.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #5 (Strong Sell).
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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.

Elevance Health, Inc.

Price history and volume

Shares 360

Investment risk — medium

Investment potential — medium

AI Factors

Labor Supply

Security parameters