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.

Средний индекс, значительно упал. Быки продолжают терять уверенность.

Medium index, significantly down. Bulls continue to lose confidence.

Сильный индекс, незначительно упал. Рынок не поддерживает быков.

Strong index, slightly down. The market does not support the bulls.

Сильный индекс, без изменений. Отток средств из лонгов на высоком уровне.

Strong index, flat. Outflow of funds from longs at a high level.

The S&P 500 Index ($SPX) (SPY) is up by +0.26% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.21%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.31%. December E-mini S&P futures (ESZ26) are up +0.20%, and December E-mini Nasdaq futures (NQZ26) are up +0.16%.
Stock indexes are moving higher today, supported by lower crude oil prices. WTI crude oil is down nearly -1% today as Middle East tensions eased after President Trump said the US would not attack Iran before the midterm elections.
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Also, concerns about slowing demand for AI-infrastructure stocks eased today after people familiar with the matter said OpenAI is expecting to reach or exceed $70 billion in annualized revenue by the end of the year, refuting a report from the Financial Times on Thursday that said OpenAI is on track to generate annualized revenue of roughly $50 billion based on its current performance.
Earnings optimism is a bullish factor for stock prices. According to data compiled by Bloomberg Intelligence, Q3 S&P 500 profits are expected to climb by +25% from a year earlier, up from a July estimate of 22%. Q3 earnings season begins next week when US money center banks report.
Nov WTI crude oil prices (CLX26) are down nearly -1% today after President Trump said the US would not attack Iran ahead of next month’s midterm elections, citing “productive discussions” with Iran. Losses in crude may be limited today as signs point to lower US crude output and threats to refining capacity. Roughly 1.28 million bpd of crude output, or 63% of US Gulf crude production, has been shut in, and Hurricane Isaias is expected to make landfall along the Gulf Coast later today or tomorrow, threatening 500,000 bpd of refining capacity. Also, due to Iranian attacks on shipping in the Strait of Hormuz, the cost to ship oil out of the Middle East is soaring, with freight rates from the Middle East to China jumping to $1.4 million a day, the most on record.
Markets are discounting a 19% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 is up +1.18%. China's Shanghai Composite recovered from a 2.5-month low and closed up +0.05%. Japan's Nikkei-225 Stock Average closed down -0.02%.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -7 ticks today. The 10-year T-note yield is up +3.0 bp to 5.257%. T-notes are under pressure today from stronger stocks, which curbs safe-haven demand for government debt. T-note losses are limited today, with WTI crude oil prices down nearly -1%, easing inflation expectations.
European government bond yields are moving lower today. The 10-year German bund yield is down -2.6 bp to 3.469%. The 10-year UK gilt yield is down -5.2 bp to 5.429%.
Italy's Aug industrial production fell -1.3% m/m, weaker than expectations of no change and the biggest decline in a year.
Markets are discounting a 11% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Optical-equipment makers are rallying today after Lumentum Holdings said its components are “completely sold out” through 2029 on high demand from tech companies clamoring for faster AI data centers. Applied Optoelectronics (AAOI) is up more than +9%, and Coherent (COHR) is up more than +8%. Also, Lumentum Holdings (LITE) is up more than +6% to lead gainers in the Nasdaq 100, and Fabrinet (FN) is up more than +3%.
Tower companies are gaining today after SpaceX said it had agreed to acquire a nationwide low-band spectrum license portfolio in a deal analysts say is a positive catalyst for the sector. Crown Castle (CCI) is up more than +11%, and American Tower (AMT) and SBA Communications (SBAC) are up more than -7%.
Humana (HUM) is up more than +14% to lead gainers in the S&P 500 and health insurance stocks higher after data from the Centers for Medicare and Medicaid Services showed improved ratings for the company’s Medicare Advantage contract, allowing it to earn bonus payments. Also, UnitedHealth Group (UNH) is up more than +3% to lead gainers in the Dow Jones Industrials, and Elevance Health (ELV) and Centene (CNC) are up more than +2%. In addition, Molina Healthcare (MOH), and the Cigna Group (CI) are up more than +1%.
Telecom stocks are retreating today after SpaceX said it had agreed to acquire a nationwide low-band spectrum license portfolio, which will increase competition from satellite operators. T-Mobile US (TMUS) is down more than -9% to lead losers in the S&P 500 and Nasdaq 100. Also, AT&T (T) is down more than -7%, and Verizon Communications (VZ) is down more than -6%. In addition, Charter Communications (CHTR) is down more than -3%, and Comcast (CMCSA) is down more than -1%.
Delta Air Lines (DAL) is down more than -3% to lead airline stocks lower after cutting its full-year adjusted EPS forecast to $5.10 to $5.60 from a previous estimate of $6.50 to $7.50, the midpoint below the consensus of $5.44. Also, American Airlines Group (AAL), United Airlines Holdings (UAL), and Alaska Air Group (ALK) are down more than -2%, and Southwest Airlines (LUV) is down more than -1%.
Fastly (FSLY) is up more than +6% after Oppenheimer upgraded the stock to outperform from perform, with a price target of $35.
Cboe Global Markets (CBOE) is up more than +3% after Morgan Stanley double-upgraded the stock to overweight from underweight, with a price target of $358.
Apple (AAPL) is down more than -2% to lead losers in the Dow Jones Industrials after cutting component orders for the iPhone 18 Pro and iPhone 18 Pro Max following weaker-than-expected demand. Skyworks Solutions (SWKS), a supplier of Apple, also dropped -6% on the news.
Earnings Reports (10/9/2026)
Delta Air Lines Inc (DAL), Hingham Institution For Savings (HIFS), Nurix Therapeutics Inc (NRIX).
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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Stocks Push Higher as Crude Oil Prices Ease

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco RAFI US 1000 ETF (Symbol: PRF) where we have detected an approximate $345.8 million dollar inflow -- that's a 3.5% increase week over week in outstanding units (from 179,680,000 to 185,910,000). Among the largest underlying components of PRF, in trading today General Motors Co (Symbol: GM) is down about 0.2%, Elevance Health Inc (Symbol: ELV) is up about 0.2%, and Ford Motor Co. (Symbol: F) is lower by about 1.7%. For a complete list of holdings, visit the PRF Holdings page » The chart below shows the one year price performance of PRF, versus its 200 day moving average:
Looking at the chart above, PRF's low point in its 52 week range is $44.11 per share, with $56.655 as the 52 week high point — that compares with a last trade of $55.36. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further PRF Research:

PRF, GM, ELV, F: Large Inflows Detected at ETF

Centene Corporation’s CNC balance sheet is becoming an increasingly important part of the investment story. Stronger cash flow is giving the company room to reduce debt while preserving financial flexibility. That matters as the insurer works through payment-timing swings and navigates a shifting healthcare environment.
Centene generated nearly $8 billion from operations in the first half, partly reflecting the timing of Medicaid pass-throughs and working capital movements. More than $3 billion of Medicaid pass-through payments is expected to be paid out in the third quarter. While this should weigh on near-term cash, these payments do not affect key operating metrics such as the Health Benefits Ratio, SG&A expense ratio, or Days Claims Payable.
The company is also using receivables to support its balance-sheet improvement. In March 2026, it monetized a $1 billion participating interest in 2025 Part D risk-sharing receivables, generating $970 million to partially redeem senior notes. This gives Centene another source of liquidity beyond operating cash flow.
The impact is already visible in leverage. CNC repurchased $1.3 billion of senior notes in the first half, pushing its debt-to-capital ratio down to 41.6% from 46.5% as of year-end. With $981 million remaining under its repurchase authorization and no borrowings under its revolving credit facility, the focus now shifts to how effectively Centene uses its cash generation to further improve the balance sheet while funding operations.
How Are Competitors Faring?
Some of CNC’s major competitors in the managed-care space are Molina Healthcare, Inc. MOH and Elevance Health, Inc. ELV.
Molina Healthcare is also focused on strengthening cash generation while managing medical-cost pressure across its businesses. MOH’s operating cash flow improved to $788 million in the first half of 2026 from an outflow of $112 million a year earlier, despite its MCR increasing to 92.2%.
Elevance Health is balancing Medicaid payment timing with continued medical-cost pressures. ELV generated $1.9 billion of operating cash flow in the second quarter and ended June with $2.1 billion of parent-company cash and investments, providing added flexibility to support its balance-sheet and capital needs.
Centene’s Price Performance, Valuation & Estimates
Shares of CNC have gained 58.2% in the year-to-date period compared with the industry’s growth of 16.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, Centene trades at a forward price-to-earnings ratio of 12.48, below the industry average of 15.25. CNC carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $4.89 per share, implying 135.1% growth from the year-ago period’s level.
CNC stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
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This article originally published on Zacks Investment Research (zacks.com).

How Centene's Strong Cash Flow Is Reshaping Its Balance Sheet

Investors with an interest in Medical Services stocks have likely encountered both Elevance Health (ELV) and Danaher (DHR). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Elevance Health is sporting a Zacks Rank of #2 (Buy), while Danaher has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ELV likely has seen a stronger improvement to its earnings outlook than DHR has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ELV currently has a forward P/E ratio of 15.70, while DHR has a forward P/E of 23.84. We also note that ELV has a PEG ratio of 2.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DHR currently has a PEG ratio of 2.53.
Another notable valuation metric for ELV is its P/B ratio of 2.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DHR has a P/B of 2.72.
These are just a few of the metrics contributing to ELV's Value grade of A and DHR's Value grade of D.
ELV stands above DHR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ELV is the superior value option right now.
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ELV or DHR: Which Is the Better Value Stock Right Now?

CVS Health’s CVS Health Services business continues to benefit from favorable pharmacy drug mix, brand inflation, purchasing economics and gradual improvement in Health Care Delivery. In the second quarter of 2026, the segment’s revenues increased 11.5% year over year to $51.80 billion, while adjusted operating income rose 10% to $1.73 billion.
The company reiterated its full-year 2026 adjusted operating income outlook despite updating its view of the 340B program, supported by performance across the broader Pharmacy Services business. Caremark continues to adapt its offerings as clients seek lower net costs and greater transparency. The 2026 selling season generated more than $6 billion in new sales, well above the company’s historical average. CVS Specialty also maintained adherence levels above 90%, while Caremark’s Humira biosimilar strategy has delivered more than $1.8 billion in client savings.
Health Care Delivery is also contributing to growth, with second-quarter 2026 revenues rising nearly 23% year over year, primarily driven by Oak Street Health. CVS is making technology infrastructure changes, refining payer contracts and adopting a more selective clinic footprint to improve the economics of Health Care Delivery over time.
Peer Update
UnitedHealth’s UNH health service business, branded as Optum, remains a central growth engine and a key pillar of diversification. Despite the temporary disruption from the Change Healthcare cyberattack in February 2024, its revenues rose 11.6% in 2024 and 7% in 2025, reaching $129.4 billion in the first half of 2026.
Growth continues to be supported by OptumHealth’s integrated value-based care model and investments in AI-enabled technologies. Optum Insight is also gaining traction with AI-driven solutions, while Optum Rx continues to advance its transparency initiatives. These efforts could support longer-term growth and margin expansion.
Elevance Health ELV continues to expand its healthcare services brand Carelon’s integrated healthcare capabilities across pharmacy, behavioral health and value-based care solutions. During the first half of 2026, Carelon revenues increased 7.1% year over year to $37.2 billion, driven by Carelon Services risk-based solutions and CarelonRx product revenues.
ELV highlighted the expansion of CareBridge, growth in external client relationships and the development of additional value-based solutions as strategic priorities. These initiatives could broaden Elevance’s role beyond traditional health insurance and support future revenue diversification.
CVS’ Price Performance, Valuation and Estimates
Over the past year, CVS Health shares have risen 30.1% compared with the industry’s 13.7% growth.
Image Source: Zacks Investment Research
CVS shares are trading at a forward five-year price-to-sales ratio of 0.29, lower than the industry average of 0.53. The stock has a Value Score of A.
The consensus estimate for the company’s 2026 earnings has been showing a bullish trend.
Image Source: Zacks Investment Research
CVS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
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Here's How CVS' Health Services Arm Is Positioned for Long-Term Growth

Centene Corporation CNC is reshaping its Medicare Advantage (“MA”) business by simplifying its plan footprint and placing greater emphasis on dual-eligible members. The strategy aims to improve the quality of its MA portfolio while better aligning resources with markets and member groups where CNC has an established healthcare presence.
The broader Medicare segment also showed improving economics. The segment’s health benefits ratio improved to 89.5% in the second quarter of 2026 from 90.9% a year ago, reflecting fundamental outperformance in both Medicare Advantage and PDP, along with favorable Medicare programmatic items and the absence of a 2026 premium deficiency reserve for MA. MA, which accounts for more than 40% of Medicare segment revenues in the second quarter of 2026, is moving closer to breakeven for full-year 2026. D-SNP members now account for about 40% of CNC’s MA portfolio.
For 2027, Centene plans to further simplify its MA footprint and focus its benefits on dual-eligible members, using its Medicaid experience to support more integrated care. This targeted approach could also reduce complexity and improve operating efficiency across the business.
The margin recovery path still depends on medical-cost control and Stars execution. Medical costs remain elevated versus historical levels, while changes in Stars methodology and higher cut points could pressure reimbursement. Even so, portfolio optimization, SG&A management and a greater focus on duals could support CNC’s target of achieving breakeven or better Medicare Advantage results in 2027, followed by further margin improvement.
How Are Competitors Faring?
Some of CNC’s major competitors in the healthcare service provider space are UnitedHealth Group Incorporated UNH and Elevance Health, Inc. ELV.
UnitedHealth Group is prioritizing Medicare Advantage margin recovery over membership growth, using repricing, benefit redesign and market exits to counter elevated medical costs and funding pressure. UNH’s medical care ratio improved to 86.7% in the second quarter of 2026 from 89.4% a year ago.
Elevance Health is taking a more selective approach to Medicare Advantage, accepting membership declines while repositioning the business for sustainable returns. Higher medical costs remain a pressure point, though pricing discipline and Carelon-led cost management could strengthen future profitability.
Centene’s Price Performance, Valuation & Estimates
Shares of CNC have surged 59% in the year-to-date period compared with the industry’s growth of 20.3%.
From a valuation standpoint, Centene trades at a forward price-to-earnings ratio of 12.57, below the industry average of 15.80. CNC carries a Value Score of A.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $4.89 per share, implying 135.1% growth from the year-ago period.
CNC stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Can Centene's Medicare Advantage Strategy Unlock Better Margins?

UnitedHealth Group Incorporated’s UNH Optum recently sold an interest in its Florida WellMed clinics to private equity firm TPG and entered a strategic partnership with the firm, according to Bloomberg. The partnership is expected to strengthen clinic operations through added support, technology investments, tools and operating capabilities. The clinics under the deal will remain in Optum’s network and continue serving patients.
Management pointed out that the goal was not to raise cash; CFO Wayne DeVeydt said UnitedHealth wanted a partner that could work with the company locally. TPG’s involvement is also expected to help the Florida business grow faster while UnitedHealth continues its broader turnaround over time. Optum acquired WellMed back in 2011.
Florida remains an active growth market, with UnitedHealth opening about 15 clinics there each year. TPG adds local focus and investment capacity at a time when Optum is trying to improve clinic performance and expand. The partnership therefore links two priorities: repairing profitability and supporting growth without slowing the wider turnaround currently underway across UnitedHealth. TPG also acquired Optum UK, another UnitedHealth subsidiary, earlier in 2026.
Optum Health is still recovering from a difficult 2025, when higher medical costs and federal payment pressure pushed operating margins below zero. It generated $102 billion of revenue in 2025, down 3% year over year. Management now expects margins of about 2% in 2026, followed by roughly 4% in 2027 and 6% in 2028, backed by quicker program rollouts.
UNH is actively focusing on lowering its medical care ratio (MCR) through cost management, pricing discipline and benefit design changes. Its second quarter MCR was 86.7%, which improved 270 bps from the year-ago period.
How are Peers Placed?
Peers like Humana Inc. HUM and Elevance Health, Inc. ELV are both working to improve medical-cost performance, but their second-quarter 2026 ratios did not improve year over year. Humana’s Insurance segment benefit ratio rose to 91.2% from 89.9% in the second quarter of 2025, a 130-basis-point deterioration, though it was in line with management’s guidance. Elevance’s benefit expense ratio increased to 89.7% from 88.9%, worsening 80 basis points as elevated medical costs in its government businesses offset better Individual ACA performance. Both companies are emphasizing pricing, benefit design and medical-cost management, but unlike UnitedHealth’s second-quarter improvement, their reported ratios still show meaningful year-over-year pressure on underwriting profitability.
UnitedHealth’s Price Performance, Valuation and Estimates
Shares of UNH have gained 19.1% in the year-to-date period compared with the industry’s growth of 20.3%.
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18.11, up from the industry average of 15.81. UNH carries a Value Score of B.
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.82 per share, implying a 21.2% improvement from the year-ago period.
The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).

UnitedHealth Reshapes Florida WellMed Operations With TPG Deal

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

Stocks Pressured as Inflation Fears Boost Bond Yields

Shares of UnitedHealth Group Incorporated UNH have climbed 38.8% over the past six months, outpacing the industry’s 36.8% gain and the S&P 500’s 12% rise. The rebound reflects improving confidence that UnitedHealth is moving past medical-cost pressures and execution setbacks that weighed heavily on the stock through 2025 and early 2026.
Among major peers, Elevance Health, Inc. ELV has gained 44.8%, while Humana Inc. HUM has surged 124.9% over the same period.
6-Month Price Performance – UNH, ELV, HUM, Industry & S&P 500
What is Driving UNH’s Recovery?
Medical-cost trends have improved, suggesting pricing, benefit design and cost controls are working. In the first half of 2026, UnitedHealth’s medical care ratio decreased to 85.3% from 87.1% a year earlier. Medical costs also declined 2% to $148.8 billion. The focus now is whether the company can sustain that progress and translate lower cost pressure into stronger earnings through 2027 and beyond.
UnitedHealth is also reducing exposure to weaker-return businesses. The company is pulling back from selected Medicare Advantage and Optum Health markets, which should help limit losses, simplify operations and redirect capital toward areas with better return potential. A leaner footprint could improve profitability and execution.
Optum remains an important source of diversification beyond insurance. Its move toward a more transparent, fee-based pharmacy benefit model could strengthen its competitive position while addressing regulatory concerns around traditional PBM practices. If execution is disciplined, the shift may enhance client appeal without weakening the economics of the business.
The Medicare Advantage backdrop has also improved. In April, CMS finalized an average 2.48% increase in 2027 Medicare Advantage payments, well above the previously proposed 0.09% increase. The rate outlook eases reimbursement concerns and gives insurers greater room to manage benefits, pricing and margins.
Capital returns have also supported sentiment. Through mid-July 2026, UnitedHealth had repurchased $4 billion of stock and remained on track to buy back at least $5 billion for the year. It also paid $4.1 billion in dividends during the first half, underscoring confidence in cash generation.
Beyond the near-term recovery, UnitedHealth still benefits from scale, a broad healthcare platform and a strong position across insurance, pharmacy services and care delivery. Aging demographics and rising healthcare demand continue to provide long-term support.
Prior Authorization Cuts: Opportunity With Some Risk
UnitedHealthcare is removing 30% of its remaining prior authorization requirements, including approvals tied to surgeries, diagnostic tests and therapies. The change could improve member satisfaction, ease provider frustration and reduce administrative work across its health plans. Faster access to care may also help retention and strengthen UnitedHealthcare’s competitive standing.
There is a trade-off, however. Fewer authorization checks could increase healthcare utilization and lift medical costs. The move may lower administrative expenses and reduce regulatory scrutiny, but UNH will still need pricing, care management and benefit design to keep any rise in utilization from weighing on margins.
Estimates Point to a Stronger Earnings Path
The Zacks Consensus Estimate for 2026 EPS is pegged at $19.82, indicating 21.2% year-over-year growth. The estimate has received two upward revisions over the past month and no downward changes. Revenues are projected at $446.78 billion, down 0.2%, reflecting UnitedHealth’s greater focus on profitability rather than pure top-line expansion.
For 2027, EPS is expected to rise 13.7% to $22.54. The estimate has seen three upward revisions over the past month, with no downward moves. Revenue is projected to increase 2.6% to $458.33 billion.
UnitedHealth has also topped earnings estimates in each of the past four quarters, delivering an average surprise of 12.1%.
UnitedHealth Price, Consensus and EPS Surprise
Is UNH Still Reasonably Valued?
The rebound has lifted UnitedHealth’s valuation above the industry average. The stock trades at 18.51X forward earnings, compared with 16.13X for the industry. Still, the multiple remains below UNH’s five-year median of 19.11X, suggesting valuation has not moved beyond its historical range. The stock currently carries a Value Score of B.
For comparison, Elevance now trades at 14.51X forward earnings, while Humana trades at 30.63X.
Wall Street sentiment also remains supportive. Several analysts have recently raised price targets or upgraded the stock. UNH still trades below the average analyst target of $481.52, implying about 20.5% upside. The target range of $380 to $529 shows that views remain divided, but the balance of expectations is still constructive.
How to Play UNH Shares
UnitedHealth’s recovery is gaining momentum as medical-cost trends improve and management sharpens its focus on more profitable businesses. Favorable Medicare Advantage reimbursement, strong capital returns and Optum’s diversification add further support. The prior-authorization changes could strengthen member and provider relationships, though higher utilization remains a risk.
Valuation has risen, but the stock still trades below its five-year median multiple and Wall Street’s average price target. With earnings estimates moving higher and operating trends improving, UNH appears to have further upside despite its recent rally. The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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UnitedHealth Stock Rises 39% in 6 Months: Should Investors Still Buy?

UnitedHealth Group, Inc. UNH appears to be making meaningful progress toward recovering from the turbulence that weighed on its performance in 2025. After facing elevated medical costs, unfavorable utilization trends and pressure across government-sponsored businesses, the healthcare giant has entered 2026 with a stronger operating footing. In the first half of 2026, its total revenues rose 1.2% year over year along with 20.5% growth in adjusted earnings per share (EPS).
A key catalyst has been better control over medical expenses. UNH’s medical care ratio declined to 86.7% in the second quarter from 89.4% a year earlier, aided by improved pricing, benefit-design changes, member mix, medical-cost management and favorable prior-period reserve development. The improvement helped UnitedHealthcare’s operating margin expand to 4.6% from 2.4% in the prior-year quarter. Meanwhile, membership declined, particularly in Medicare Advantage, as UNH is currently prioritizing profitable growth over enrollment expansion, a strategy that could support healthier margins over time.
Optum is also contributing to the recovery. The segment benefited from improved operational execution, with operating income rising 29% year over year to $4 billion in the second quarter. Investments in technology, artificial intelligence and care-delivery capabilities are aimed at improving productivity and clinical efficiency, potentially creating additional opportunities for margin expansion.
The stronger results encouraged UnitedHealth to raise its 2026 adjusted EPS outlook to $19.50-$20. Still, elevated medical-cost trends, pressure in Medicaid and commercial benefits and membership declines remain risks. Therefore, sustained medical-cost discipline and continued improvement at Optum will be crucial for making the recovery durable.
How Are Competitors Faring?
Some of UNH’s major competitors in the medical space are Humana Inc. HUM and Elevance Health, Inc. ELV.
Humana is focusing on pricing, network management and operating efficiencies to restore margins while navigating elevated medical costs and utilization across its Medicare Advantage business. In the first half of 2026, HUM’s adjusted revenues increased 24.9% year over year and adjusted EPS grew 0.3%.
Elevance is prioritizing medical cost management, operating efficiency and Carelon’s expansion while dealing with elevated medical costs and membership declines in government businesses. In the first half of 2026, operating revenues increased 1.2% year over year, while adjusted EPS declined 3.7%.
UnitedHealth’s Price Performance, Valuation & Estimates
Shares of UNH have gained 28.7% in the past year compared with the industry’s growth of 24%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18.46, above the industry average of 15.99. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $19.82 per share, implying 21.2% growth from the year-ago period.
Image Source: Zacks Investment Research
UNH stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).