Humana Inc., together with its subsidiaries, provides medical and specialty insurance products in the United States. It operates through two segments, Insurance and CenterWell. The company offers medical and supplemental benefit plans to individuals. It has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits. In addition, the company provides commercial fully-insured medical and specialty health insurance benefits comprising dental, vision, life insurance, and other supplemental health benefits, as well as administrative services only products to individuals and employer groups; military services, such as TRICARE T2017 East Region contract; and engages in the operations of pharmacy benefit manager business. Further, it operates pharmacies and senior focused primary care centers; and offers home solutions services, such as home health, hospice, and other services to its health plan members, as well as to third parties. The company sells its products through employers and employees, independent brokers and agents, sales representatives, and digital insurance agencies. The company was formerly known as Extendicare Inc. and changed its name to Humana Inc. in April 1974. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.

Humana Inc.

The S&P 500 Index ($SPX) (SPY) on Tuesday closed down by -0.24%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down by -0.62%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up by +0.26%. December E-mini S&P futures (ESZ25) fell -0.25%, and December E-mini Nasdaq futures (NQZ25) rose +0.25%.
Stock indexes settled mixed on Tuesday, with the S&P 500 falling to a 3-week low. The broader market was under pressure on Tuesday as US financial reports pointed to a sluggish economy. The Nov unemployment rate rose to a 4-year high, Oct retail sales stagnated, and US manufacturing activity slowed to a 5-month low. Also, a slump in energy producers on Tuesday weighed on the broader market after WTI crude oil fell more than -2% to a 4.75-year low. However, strength in the Magnificent Seven technology stocks on Tuesday was positive for the overall market, lifting the Nasdaq 100 from a 3-week low into positive territory.
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Stocks also found some support from Tuesday’s Fed-friendly US economic reports on Nov payrolls and Oct retail sales, which bolster expectations that the Fed will continue to ease monetary policy. Also, wage pressures are easing as Nov hourly earnings posted their smallest year-on-year increase in 4.5 years. The 10-year T-note yield fell -2 bp to 4.15%.
US Nov nonfarm payrolls rose by +64,000, stronger than expectations of +50,000. Oct nonfarm payrolls fell by -105,000, weaker than expectations of -25,000. The Nov unemployment rate rose +0.1 to a 4-year high of 4.6%.
US Nov average hourly earnings rose +0.1% m/m and +3.5% y/y, weaker than expectations of +0.3% m/m and +3.6% y/y, with the +3.5% y/y gain the smallest year-on-year increase in 4.5 years.
US Oct retail sales were unchanged m/m, weaker than expectations of +0.1% m/m. However, Oct retail sales ex-autos rose +0.4% m/m, stronger than expectations of +0.2% m/m.
The US Dec S&P manufacturing PMI fell -0.4 to a 5-month low of 51.8, weaker than expectations of 52.1.
Comments on Tuesday from Atlanta Fed President Raphael Bostic were hawkish and negative for stocks when he said, "After wrestling with all the considerations, today I continue to view price stability as the clearer and more pressing risk despite shifts in the labor market." He added that "he sees little to suggest that price pressures will dissipate before mid to late 2026, at the earliest, and expects inflation to remain above 2.5% even at the end of 2026."
This week's market focus will be on US economic news. On Thursday, weekly initial unemployment claims are expected to fall -11,000 to 225,000. Also, Nov CPI is expected to be +3.1% y/y, and Nov core CPI is expected to be +3.0% y/y. On Friday, Nov existing home sales are expected to be up +1.2% m/m to 4.15 million. Also, the University of Michigan Dec consumer sentiment index is expected to be revised upward by +0.2 to 53.5 from the previously reported 53.3.
The markets are discounting a 24% chance that the FOMC will cut the fed funds target range by 25 bp at the next FOMC meeting on January 27-28.
Overseas stock markets settled lower on Wednesday. The Euro Stoxx 50 closed down -0.60%. China’s Shanghai Composite fell to a 2-month low and closed down -1.11%. Japan’s Nikkei Stock 225 slid to a 2-week low and closed down -1.56%.
Interest Rates
March 10-year T-notes (ZNH6) on Tuesday closed up by +7.5 ticks. The 10-year T-note yield fell -2.7 bp to 4.145%. T-notes moved higher on Tuesday after the US Nov employment rate rose to a 4-year high and Nov average hourly earnings posted their smallest year-on-year increase in 4.5 years. Also, Oct retail sales rose less than expected, and the Dec S&P manufacturing PMI fell to a 5-month low, which are dovish factors for Fed policy. In addition, falling inflation expectations were supportive of T-notes as the 10-year breakeven inflation rate fell to a 2-week low on Tuesday at 2.231%.
Gains in T-notes were limited on Tuesday after a report on US Oct retail sales ex-autos rose more than expected, a hawkish factor for Fed policy. Also, hawkish comments from Atlanta Fed President Raphael Bostic were bearish for T-notes when he said elevated price pressures are expected to persist through most of next year.
The steepening yield curve is bearish for T-note prices. Steepening trades occur when bond investors buy short-term government debt and sell long -term debt. The yield curve has steepened since last Wednesday’s FOMC meeting, when the Fed said it would begin purchasing up to $40 billion of short-term T-bills a month to boost liquidity in the financial system. Longer-term Treasury securities are also under pressure from concerns about inflation and the Fed’s independence.
European government bond yields are mixed today. The 10-year German bund yield fell -0.8 bp to 2.845%. The 10-year UK gilt yield rose to a 3-week high of 4.561% and finished up +2.3 bp to 4.518%.
The Eurozone Dec S&P manufacturing PMI unexpectedly fell -0.4 to 49.2, weaker than expectations of an increase to 49.9 and the steepest pace of contraction in 8 months.
The German Dec ZEW survey expectations of economic growth unexpectedly rose by +7.3 to a 5-month high of 45.8, stronger than expectations of a decline to 38.4.
The UK Dec S&P manufacturing PMI rose +1.0 to 51.2, stronger than expectations of 50.3 and the fastest pace of expansion in 15 months.
Swaps are discounting a 0% chance for a -25 bp rate cut by the ECB at its next policy meeting on Thursday.
US Stock Movers
Energy producers and energy service providers sold off on Tuesday and weighed on the broader market, after WTI crude oil fell more than 3% to a 4.75-year low. Phillips 66 (PSX) closed down more than -6% to lead losers in the S&P 500, and Baker Hughes (BKR) closed down more than -3% to lead losers in the Nasdaq 100. Also, APA Corp (APA) closed down more than -5%, and Marathon Petroleum (MPC) and Halliburton (HAL) closed down more than -4%. In addition, Occidental Petroleum (OXY), ConocoPhillips (COP), Diamondback Energy (FANG), and Valero Energy (VLO) closed down more than -3%. Finally, Devon Energy (DVN), Exxon Mobil (XOM), and Chevron (CVX) closed down more than -2%.
The strength of the Magnificent Seven technology stocks on Tuesday was a supportive factor for the overall market. Tesla (TSLA) closed up more than +3%, and Meta Platforms (META) closed up more than +1%. Also, Nvidia (NVDA) closed up +0.81%, Microsoft (MSFT) closed up +0.33%, Apple (AAPL) closed up +0.18%, and Amazon.com (AMZN) closed up +0.01%. Bucking the trend, Alphabet (GOOGL) closed down -0.54%.
Booz Allen Hamilton Holding Corp (BAH) closed down more than -7% after it announced that CFO Calderone will resign from the company effective February 1.
Humana (HUM) closed down more than -6% after forecasting full-year adjusted EPS of $17.000, below the consensus of $17.06.
Pfizer Inc (PFE) closed down more than -3% after forecasting 2026 revenue of $59.5 billion to $62.5 billion, the midpoint below the consensus of $61.63 billion.
Illinois Tool Works (ITW) closed down more than -3% after Goldman Sachs downgraded the stock to sell from neutral with a price target of $230.
Archer-Daniels-Midland (ADM) closed down more than -3% after Morgan Stanley downgraded the stock to underweight from equal weight with a price target of $50.
Comcast (CMCSA) closed up more than +5% to lead gainers in the S&P 500 and Nasdaq 100 after CNBC commented about trading activity in the swaps market that may suggest involvement by activist investors.
Cognex (CGNX) closed up more than +5% after Goldman Sachs double-upgraded the stock to buy from sell with a price target of $50.
Estee Lauder (EL) closed up more than +3% after Bank of America named the stock as its top pick for beauty for 2026, with a price target of $130.
Robinhood Markets (HOOD) closed up more than +3% after Trust Securities initiated coverage on the stock with a buy recommendation and a price target of $155.
Okta Inc (OKTA) closed up more than +2% after Jeffries upgraded the stock to buy from hold with a price target of $125.
Southwest Airlines (LUV) closed up more than +1% after Barclays upgraded the stock to overweight from equal weight with a price target of $56.
Earnings Reports(12/17/2025)
General Mills Inc (GIS), Jabil Inc (JBL), Micron Technology Inc (MU), Toro Co/The (TTC).
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.
More news from Barchart
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 Mixed on Soft US Economic News

The S&P 500 Index ($SPX) (SPY) today is down by -0.32%, the Dow Jones Industrials Index ($DOWI) (DIA) is down by -0.293%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -0.14%. December E-mini S&P futures (ESZ25) are down -0.30%, and December E-mini Nasdaq futures (NQZ25) are down -0.12%.
Stock indexes are sliding today, with the S&P 500 falling to a 2.5-week low and the Nasdaq 100 dropping to a 3-week low. Stocks are under pressure today as US financial reports point to a sluggish economy. The Nov unemployment rate rose to a 4-year high, Oct retail sales stagnated, and US manufacturing activity slowed to a 5-month low. Also, a slump in energy producers today is weighing on the broader market after WTI crude oil fell more than 3% to a 4.75-year low.
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Stocks found some support from today’s Fed-friendly US economic reports on Nov payrolls and Oct retail sales, which bolster expectations that the Fed will continue to ease monetary policy. Also, wage pressures are easing as Nov hourly earnings posted their smallest year-on-year increase in 4.5 years.
US Nov nonfarm payrolls rose by +64,000, stronger than expectations of +50,000. Oct nonfarm payrolls fell by -105,000, weaker than expectations of -25,000. The Nov unemployment rate rose +0.1 to a 4-year high of 4.6%.
US Nov average hourly earnings rose +0.1% m/m and +3.5% y/y, weaker than expectations of +0.3% m/m and +3.6% y/y, with the +3.5% y/y gain the smallest year-on-year increase in 4.5 years.
US Oct retail sales were unchanged m/m, weaker than expectations of +0.1% m/m. However, Oct retail sales ex-autos rose +0.4% m/m, stronger than expectations of +0.2% m/m.
The US Dec S&P manufacturing PMI fell -0.4 to a 5-month low of 51.8, weaker than expectations of 52.1.
This week's market focus will be on US economic news. On Thursday, weekly initial unemployment claims are expected to fall -11,000 to 225,000. Also, Nov CPI is expected to be +3.1% y/y, and Nov core CPI is expected to be +3.0% y/y. On Friday, Nov existing home sales are expected to be up +1.2% m/m to 4.15 million. Also, the University of Michigan Dec consumer sentiment index is expected to be revised upward by +0.2 to 53.5 from the previously reported 53.3.
The markets are discounting a 24% chance that the FOMC will cut the fed funds target range by 25 bp at the next FOMC meeting on January 27-28.
Overseas stock markets are lower today. The Euro Stoxx 50 is down -0.68%. China’s Shanghai Composite fell to a 2-month low and closed down -1.11%. Japan’s Nikkei Stock 225 slid to a 2-week low and closed down -1.56%.
Interest Rates
March 10-year T-notes (ZNH6) today are up by +3 ticks. The 10-year T-note yield is down -0.8 bp to 4.165%. T-notes are moving higher today after the US Nov employment rate rose to a 4-year high and Nov average hourly earnings posted their smallest year-on-year increase in 4.5 years. Also, Oct retail sales rose less than expected, and the Dec S&P manufacturing PMI fell to a 5-month low, dovish factors for Fed policy. In addition, falling inflation expectations are supportive of T-notes as the 10-year breakeven inflation rate fell to a 1.5-week low today at 2.240%.
Gains in T-notes are limited after a report on US Oct retail sales ex-autos rose more than expected, a hawkish factor for Fed policy.
The steepening yield curve is bearish for T-note prices. Steepening trades occur when bond investors buy short-term government debt and sell long -term debt. The yield curve has steepened since last Wednesday’s FOMC meeting, when the Fed said it would begin purchasing up to $40 billion of short-term T-bills a month to boost liquidity in the financial system. Longer-term Treasury securities are also under pressure from concerns about inflation and the Fed’s independence.
European government bond yields are mixed today. The 10-year German bund yield is down -0.2 bp to 2.851%. The 10-year UK gilt yield rose to a 3-week high of 4.561% and is up +2.6 bp to 4.522%.
The Eurozone Dec S&P manufacturing PMI unexpectedly fell -0.4 to 49.2, weaker than expectations of an increase to 49.9 and the steepest pace of contraction in 8 months.
The German Dec ZEW survey expectations of economic growth unexpectedly rose by +7.3 to a 5-month high of 45.8, stronger than expectations of a decline to 38.4.
The UK Dec S&P manufacturing PMI rose +1.0 to 51.2, stronger than expectations of 50.3 and the fastest pace of expansion in 15 months.
Swaps are discounting a 0% chance for a -25 bp rate cut by the ECB at its next policy meeting on Thursday.
US Stock Movers
Energy producers and energy service providers are falling today, weighing on the broader market, as WTI crude oil is down more than 3% at a 4.75-year low. APA Corp (APA) is down more than -5% to lead losers in the S&P 500. Also, Diamondback Energy (FANG) is down more than -4% to lead losers in the Nasdaq 100. In addition, Halliburton (HAL) is down more than -4%, and Occidental Petroleum (OXY), Marathon Petroleum (MPC), ConocoPhillips (COP), Baker Hughes (BKR), Phillips 66 (PSX), and Devon Energy (DVN) are down more than -3%. Finally, Exxon Mobil (XOM) and Valero Energy (VLO) are down more than -2%.
Cryptocurrency-exposed stocks are climbing today as Bitcoin (^BTCUSD) rose more than +1%. Strategy (MSTR) is up more than +4% to lead gainers in the Nasdaq 100. Also, Galaxy Digital Holdings (GLXY), MARA Holdings (MARA), and Coinbase Global (COIN) are up more than +1%.
Booz Allen Hamilton Holding Corp (BAH) is down more than -7% after it announced that CFO Calderone will resign from the company effective February 1.
Pfizer Inc (PFE) is down more than -4% after forecasting 2026 revenue of $59.5 billion to $62.5 billion, the midpoint below the consensus of $61.63 billion.
Humana (HUM) is down more than -2% after forecasting full-year adjusted EPS of $17.000, below the consensus of $17.06.
Illinois Tool Works (ITW) is down more than -2% after Goldman Sachs downgraded the stock to sell from neutral with a price target of $230.
Archer-Daniels-Midland (ADM) is down more than -2% after Morgan Stanley downgraded the stock to underweight from equal weight with a price target of $50.
Cognex (CGNX) is up more than +5% after Goldman Sachs double-upgraded the stock to buy from sell with a price target of $50.
Comcast (CMCSA) is up more than +3% to lead gainers in the S&P 500 after CNBC commented about trading activity in the swaps market that may suggest involvement by activist investors.
Okta Inc (OKTA) is up more than +2% after Jeffries upgraded the stock to buy from hold with a price target of $125.
Southwest Airlines (LUV) is up more than +2% after Barclays upgraded the stock to overweight from equal weight with a price target of $56.
Estee Lauder (EL) is up more than +2% after Bank of America named the stock as its top pick for beauty for 2026, with a price target of $130.
Ford Motor (F) is up more than +1% after it said it is cancelling a planned electric F-series truck and shifting production toward gas and hybrid vehicles.
Earnings Reports(12/16/2025)
CSP Inc (CSPI), Golden Matrix Group Inc (GMGI), Immersion Corp (IMMR), Lennar Corp (LEN), RCI Hospitality Holdings Inc (RICK), Worthington Enterprises Inc (WOR).
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.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Slide on Sluggish US Economic News

The S&P 500 Index ($SPX) (SPY) today is down by -0.14%, the Dow Jones Industrials Index ($DOWI) (DIA) is down by -0.13%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.03%. December E-mini S&P futures (ESZ25) are down -0.12%, and December E-mini Nasdaq futures (NQZ25) are up +0.04%.
Stock indexes are mixed today, with the S&P 500 falling to a 2.5-week low. The broader market is under pressure on US economic concerns after today’s financial reports showed the Nov unemployment rate rose to a 4-year high and Oct retail sales stagnated. Also, a slump in energy producers today is weighing on the broader market after WTI crude oil fell more than 2% to a 7-month low.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks found some support from today’s Fed-friendly US economic reports on Nov payrolls and Oct retail sales, which bolster expectations that the Fed will continue to ease monetary policy. Also, wage pressures are easing as Nov hourly earnings posted their smallest year-on-year increase in 4.5 years.
US Nov nonfarm payrolls rose by +64,000, stronger than expectations of +50,000. Oct nonfarm payrolls fell by -105,000, weaker than expectations of -25,000. The Nov unemployment rate rose +0.1 to a 4-year high of 4.6%.
US Nov average hourly earnings rose +0.1% m/m and +3.5% y/y, weaker than expectations of +0.3% m/m and +3.6% y/y, with the +3.5% y/y gain the smallest year-on-year increase in 4.5 years.
US Oct retail sales were unchanged m/m, weaker than expectations of +0.1% m/m. However, Oct retail sales ex-autos rose +0.4% m/m, stronger than expectations of +0.2% m/m.
This week's market focus will be on US economic news. On Thursday, weekly initial unemployment claims are expected to fall -11,000 to 225,000. Also, Nov CPI is expected to be +3.1% y/y, and Nov core CPI is expected to be +3.0% y/y. On Friday, Nov existing home sales are expected to be up +1.2% m/m to 4.15 million. Also, the University of Michigan Dec consumer sentiment index is expected to be revised upward by +0.2 to 53.5 from the previously reported 53.3.
The markets are discounting a 24% chance that the FOMC will cut the fed funds target range by 25 bp at the next FOMC meeting on January 27-28.
Overseas stock markets are lower today. The Euro Stoxx 50 is down -0.38%. China’s Shanghai Composite fell to a 2-month low and closed down -1.11%. Japan’s Nikkei Stock 225 slid to a 2-week low and closed down -1.56%.
Interest Rates
March 10-year T-notes (ZNH6) today are down by -3 ticks. The 10-year T-note yield is up +1.6 bp to 4.188%. T-notes gave up an early advance today and turned lower after a report on US Oct retail sales ex-autos rose more than expected, a hawkish factor for Fed policy. T-notes initially moved higher today after the Nov employment rate rose to a 4-year high and Nov average hourly earnings posted their smallest year-on-year increase in 4.5 years. Falling inflation expectations are also supportive of T-notes as the 10-year breakeven inflation rate fell to a 1.5-week low today at 2.240%.
The steepening yield curve is bearish for T-note prices. Steepening trades occur when bond investors buy short-term government debt and sell long -term debt. The yield curve has steepened since last Wednesday’s FOMC meeting, when the Fed said it would begin purchasing up to $40 billion of short-term T-bills a month to boost liquidity in the financial system. Longer-term Treasury securities are also under pressure from concerns about inflation and the Fed’s independence.
European government bond yields are moving higher today. The 10-year German bund yield is up +1.5 bp to 2.868%. The 10-year UK gilt yield rose to a 3-week high of 4.561% and is up +5.9 bp to 4.554%.
The Eurozone Dec S&P manufacturing PMI unexpectedly fell -0.4 to 49.2, weaker than expectations of an increase to 49.9 and the steepest pace of contraction in 8 months.
The German Dec ZEW survey expectations of economic growth unexpectedly rose +7.3 to a 5-month high of 45.8, stronger than expectations of a decline to 38.4.
The UK Dec S&P manufacturing PMI rose +1.0 to 51.2, stronger than expectations of 50.3 and the fastest pace of expansion in 15 months.
Swaps are discounting a 0% chance for a -25 bp rate cut by the ECB at its next policy meeting on Thursday.
US Stock Movers
Energy producers and energy service providers are falling today, weighing on the broader market, as WTI crude oil is down more than 2% at a 7-month low. Diamondback Energy (FANG), APA Corp (APA), and Occidental Petroleum (OXY) are down more than -2%. Also, Devon Energy (DVN), ConocoPhillips (COP), Baker Hughes (BKR), Phillips 66 (PSX), Halliburton (HAL), Exxon Mobil (XOM), and Valero Energy (VLO) are down more than -1%.
Booz Allen Hamilton Holding Corp (BAH) is down more than -6% after it announced that CFO Calderone will resign from the company effective February 1.
Humana (HUM) is down more than -2% after forecasting full-year adjusted EPS of $17.000, below the consensus of $17.06.
Pfizer Inc (PFE) is down more than -2% after forecasting 2026 revenue of $59.5 billion to $62.5 billion, the midpoint below the consensus of $61.63 billion.
Illinois Tool Works (ITW) is down more than -1% after Goldman Sachs downgraded the stock to sell from neutral with a price target of $230.
Gitlab (GTLB) is down more than -1% after KeyBanc Capital Markets downgraded the stock to sector weight from overweight.
Cognex (CGNX) is up more than +4% after Goldman Sachs double-upgraded the stock to buy from sell with a price target of $50.
Okta Inc (OKTA) is up more than +3% after Jeffries upgraded the stock to buy from hold with a price target of $125.
Southwest Airlines (LUV) is up more than +2% to lead gainers in the S&P 500 after Barclays upgraded the stock to overweight from equal weight with a price target of $56.
Estee Lauder (EL) is up more than +1% after Bank of America named the stock as its top pick for beauty for 2026 with a price target of $130.
Ford Motor (F) is up more than +1% after it said it is cancelling a planned electric F-series truck and shifting production toward gas and hybrid vehicles.
Earnings Reports(12/16/2025)
CSP Inc (CSPI), Golden Matrix Group Inc (GMGI), Immersion Corp (IMMR), Lennar Corp (LEN), RCI Hospitality Holdings Inc (RICK), Worthington Enterprises Inc (WOR).
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.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Slightly Lower on US Economic Concerns

In early trading on Tuesday, shares of Southwest Airlines topped the list of the day's best performing components of the S&P 500 index, trading up 3.4%. Year to date, Southwest Airlines registers a 28.3% gain.
And the worst performing S&P 500 component thus far on the day is Humana, trading down 3.0%. Humana is showing a gain of 5.0% looking at the year to date performance.
Two other components making moves today are Biogen, trading down 2.9%, and Dell Technologies, trading up 2.5% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

S&P 500 Movers: HUM, LUV

For Immediate Release
Chicago, IL – December 16, 2025 – Today, Zacks Equity Research Equity are UnitedHealth Group Inc. UNH, Humana Inc. HUM and Centene Corp. CNC.
Industry: HMO
Link: https://www.zacks.com/commentary/2804543/3-hmo-stocks-in-focus-despite-rising-medical-costs-regulatory-pressures
The U.S. health insurance industry, referred to as Health Maintenance Organization (HMO), is capitalizing on strategic mergers and acquisitions (M&A) and technological innovation to expand its market presence, diversify offerings and enhance competitiveness. The Federal Reserve’s projected interest rate cuts for 2026 are expected to lower borrowing costs, encouraging more M&A activity without heavily drawing on internal reserves.
On the downside, medical expenses are rising due to the return of deferred care, increased chronic disease management and surging costs of specialty drugs like biologics and cancer therapies. These pressures, coupled with an aging population and higher chronic illness rates, are compressing profit margins and straining the Health Benefit Ratio (HBR).
Compounding the challenges is a national shortage of nurses and healthcare professionals, which is impacting hospital operations. Despite these hurdles, companies like UnitedHealth Group Inc., Humana Inc. and Centene Corp. appear well-placed to counter industry headwinds.
About the Industry
The Zacks HMO industry consists of entities (either private or public) that take care of subscribers’ basic and supplemental health services. Companies in this space primarily assume risks and assign premiums to health and medical insurance policies. Industry participants also provide administrative and managed-care services for self-funded insurance.
Services are generally offered by a network of approved care providers (called in-network), which include primary care physicians, clinical facilities, hospitals and specialists. However, out-of-network exceptions are made during emergencies or when necessary. Health insurance plans can be availed through private purchases, social insurance or social welfare programs.
4 Trends Defining the HMO Industry's Future
Rising Medical Expenses: Healthcare costs for U.S. health insurers are climbing due to multiple factors. The resurgence of previously postponed medical care, routine screenings and chronic disease management has led to increased healthcare utilization and a surge in insurance claims. Additionally, the cost of prescription drugs continues to escalate sharply.
Demographic trends, including an aging population, and a growing incidence of chronic illnesses like obesity-related diabetes and cardiovascular disease, are further intensifying long-term cost pressures. These dynamics have strained the Health Benefit Ratio (a key profitability metric for insurers), thereby compressing profit margins.
Regulatory Challenges: Health insurers in the domestic market are navigating a period of heightened regulatory uncertainty. Legislative proposals such as the One Big Beautiful Bill Act seek to reduce federal Medicaid funding, introduce work requirements and tighten eligibility verification, measures that could lower coverage levels and compress reimbursement rates for both providers and insurers.
At the same time, Medicare Advantage payment rate adjustments and potential reductions in required coverage under the ACA are creating uncertainty. Health insurers are especially vulnerable, as reduced Medicaid and Medicare payments can push already thin margins into the red. Additionally, reductions in ACA subsidies may depress enrollment in marketplace plans.
Given that commercial insurance products typically deliver higher margins than Medicaid or ACA plans, insurers are increasingly prioritizing the expansion of their commercial portfolios. That said, the anticipated Medicare Advantage rate increases in 2026 may provide some margin support.
Scarcity of Healthcare Professionals: The ongoing nationwide shortage of nurses and other healthcare professionals continues to strain hospital operations, especially as patient volumes rise. Key factors driving this crisis include an aging nursing workforce, widespread burnout and unequal workforce distribution. HMOs collaborate with hospitals, physicians and other providers to deliver cost-effective care to their members.
The quality and reliability of these services are essential for maintaining customer satisfaction and renewing health plans. However, a reduced nursing workforce can compromise the ability of hospitals to deliver high-quality care, ultimately impacting customer retention and the reputation of HMO companies.
Strategic Emphasis on Mergers and Acquisitions: In addition to leveraging technological advancements, HMOs frequently engage in M&A to enhance their capabilities, penetrate new markets, strengthen their foothold in existing regions, grow their customer base and reinforce their national presence. These strategic moves also foster diversification, enabling firms to maintain a competitive edge.
With the Federal Reserve announcing three interest rate cuts for 2025 and signaling further reductions in 2026, borrowing costs are expected to ease. This more favorable interest rate environment will likely encourage M&A activity by allowing industry players to secure financing more affordably, minimizing the need to deplete internal cash reserves.
Zacks Industry Rank Indicates Bearish Outlook
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates tepid near-term prospects. The Zacks Medical-HMOs industry is housed within the broader Zacks Medical sector. It currently carries a Zacks Industry Rank #212, which places it in the bottom 12% of more than 250 Zacks industries.
Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of the negative earnings outlook for the constituent companies in aggregate.
Despite the dismal scenario, we will present a few stocks that one can retain, given their solid growth endeavors. But before that, it is worth looking at the industry’s recent stock-market performance and the valuation picture.
Industry Underperforms S&P 500, Sector
The Zacks Medical-HMO industry has declined 25.8% in the past year against the Zacks S&P 500 composite’s 2.4% growth. The Zacks Medical sector rallied 14.3% in the same time frame.
Industry's Current Valuation
On the basis of the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing medical stocks, the industry is trading at 16.04X compared with the S&P 500’s 23.35X and the sector’s 20.92X.
In the past five years, the industry has traded as high as 19.57X and as low as 11.58X, the median being 16.2X.
3 Stocks to Watch
We present three stocks from the space with a current Zacks Rank #3 (Hold). Considering the present industry scenario, it might be prudent for investors to retain these stocks in their portfolios, as these are well-placed to generate growth in the long haul.
UnitedHealth Group: Minnesota-based UnitedHealth Group’s revenues are driven by strong performances from UnitedHealthcare and Optum. The UnitedHealthcare segment benefits from effective Medicare and Medicaid offerings, integrating affordable and attractive features that expand membership and boost premium income. This has led to multiple contract wins for the company. Optum's growth is fueled by acquisitions, advanced technology and data-driven care models. Strategic M&A and telehealth investments further enhance UNH’s nationwide reach and service efficiency.
The Zacks Consensus Estimate for UnitedHealth Group’s 2025 earnings is pegged at $16.29 per share. The consensus mark for revenues implies 11.9% growth from the year-ago figure. UNH’s earnings beat estimates in two of the last four quarters and missed the mark twice, the average negative surprise being 2.25%.
Humana: Headquartered in Kentucky, Humana has maintained steady growth fueled by rising premiums and an expanding membership base. The strong performance of these plans has secured the company multiple new contracts with state agencies. Through its CenterWell brand, Humana continues to focus on meeting the healthcare needs of the nation’s senior population. Over the years, the company has also pursued strategic acquisitions, which have broadened its revenue streams.
The Zacks Consensus Estimate for Humana’s 2025 earnings is pegged at $17.08 per share, indicating a 5.4% rise from the 2024 figure. The consensus mark for 2025 revenues implies 10% growth from the 2024 figure. HUM’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average being 7.54%.
Centene: Headquartered in Missouri, Centene’s revenue growth is driven by strong performance in its Medicare and Medicaid businesses, contributing to increased contract wins and expanding membership. The ongoing preference for Medicare Advantage plans among the aging U.S. population continues to fuel consistent demand for Centene’s Medicare offerings. The company pursues an inorganic growth strategy, utilizing strategic acquisitions and partnerships with healthcare providers to broaden its capabilities.
The Zacks Consensus Estimate for Centene’s 2025 earnings is pegged at $2.00 per share. The consensus mark for 2025 revenues implies 18.5% growth from the 2024 figure. CNC’s earnings outpaced estimates in three of the last four quarters and missed the mark once, the average being 75.18%.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
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Zacks Industry Outlook UnitedHealth, Humana and Centene

The U.S. health insurance industry, referred to as Health Maintenance Organization (HMO), is capitalizing on strategic mergers and acquisitions (M&A) and technological innovation to expand its market presence, diversify offerings and enhance competitiveness. The Federal Reserve’s projected interest rate cuts for 2026 are expected to lower borrowing costs, encouraging more M&A activity without heavily drawing on internal reserves. On the downside, medical expenses are rising due to the return of deferred care, increased chronic disease management and surging costs of specialty drugs like biologics and cancer therapies. These pressures, coupled with an aging population and higher chronic illness rates, are compressing profit margins and straining the Health Benefit Ratio (HBR). Compounding the challenges is a national shortage of nurses and healthcare professionals, which is impacting hospital operations. Despite these hurdles, companies like UnitedHealth Group Incorporated UNH, Humana Inc. HUM and Centene Corporation CNC appear well-placed to counter industry headwinds.
About the Industry
The Zacks HMO industry consists of entities (either private or public) that take care of subscribers’ basic and supplemental health services. Companies in this space primarily assume risks and assign premiums to health and medical insurance policies. Industry participants also provide administrative and managed-care services for self-funded insurance. Services are generally offered by a network of approved care providers (called in-network), which include primary care physicians, clinical facilities, hospitals and specialists. However, out-of-network exceptions are made during emergencies or when necessary. Health insurance plans can be availed through private purchases, social insurance or social welfare programs.
4 Trends Defining the HMO Industry's Future
Rising Medical Expenses: Healthcare costs for U.S. health insurers are climbing due to multiple factors. The resurgence of previously postponed medical care, routine screenings and chronic disease management has led to increased healthcare utilization and a surge in insurance claims. Additionally, the cost of prescription drugs continues to escalate sharply. Demographic trends, including an aging population, and a growing incidence of chronic illnesses like obesity-related diabetes and cardiovascular disease, are further intensifying long-term cost pressures. These dynamics have strained the Health Benefit Ratio (a key profitability metric for insurers), thereby compressing profit margins.
Regulatory Challenges: Health insurers in the domestic market are navigating a period of heightened regulatory uncertainty. Legislative proposals such as the One Big Beautiful Bill Act seek to reduce federal Medicaid funding, introduce work requirements and tighten eligibility verification, measures that could lower coverage levels and compress reimbursement rates for both providers and insurers. At the same time, Medicare Advantage payment rate adjustments and potential reductions in required coverage under the ACA are creating uncertainty. Health insurers are especially vulnerable, as reduced Medicaid and Medicare payments can push already thin margins into the red. Additionally, reductions in ACA subsidies may depress enrollment in marketplace plans. Given that commercial insurance products typically deliver higher margins than Medicaid or ACA plans, insurers are increasingly prioritizing the expansion of their commercial portfolios. That said, the anticipated Medicare Advantage rate increases in 2026 may provide some margin support.
Scarcity of Healthcare Professionals: The ongoing nationwide shortage of nurses and other healthcare professionals continues to strain hospital operations, especially as patient volumes rise. Key factors driving this crisis include an aging nursing workforce, widespread burnout and unequal workforce distribution. HMOs collaborate with hospitals, physicians and other providers to deliver cost-effective care to their members. The quality and reliability of these services are essential for maintaining customer satisfaction and renewing health plans. However, a reduced nursing workforce can compromise the ability of hospitals to deliver high-quality care, ultimately impacting customer retention and the reputation of HMO companies.
Strategic Emphasis on Mergers and Acquisitions: In addition to leveraging technological advancements, HMOs frequently engage in M&A to enhance their capabilities, penetrate new markets, strengthen their foothold in existing regions, grow their customer base and reinforce their national presence. These strategic moves also foster diversification, enabling firms to maintain a competitive edge. With the Federal Reserve announcing three interest rate cuts for 2025 and signaling further reductions in 2026, borrowing costs are expected to ease. This more favorable interest rate environment will likely encourage M&A activity by allowing industry players to secure financing more affordably, minimizing the need to deplete internal cash reserves.
Zacks Industry Rank Indicates Bearish Outlook
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates tepid near-term prospects. The Zacks Medical-HMOs industry is housed within the broader Zacks Medical sector. It currently carries a Zacks Industry Rank #212, which places it in the bottom 12% of more than 250 Zacks industries.
Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of the negative earnings outlook for the constituent companies in aggregate.
Despite the dismal scenario, we will present a few stocks that one can retain, given their solid growth endeavors. But before that, it is worth looking at the industry’s recent stock-market performance and the valuation picture.
Industry Underperforms S&P 500, Sector
The Zacks Medical-HMO industry has declined 25.8% in the past year against the Zacks S&P 500 composite’s 2.4% growth. The Zacks Medical sector rallied 14.3% in the same time frame.
One-Year Price Performance
Image Source: Zacks Investment Research
Industry's Current Valuation
On the basis of the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing medical stocks, the industry is trading at 16.04X compared with the S&P 500’s 23.35X and the sector’s 20.92X.
In the past five years, the industry has traded as high as 19.57X and as low as 11.58X, the median being 16.2X, as the chart below shows.
Forward 12-Month Price/Earnings (P/E) Ratio
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
3 Stocks to Watch
We present three stocks from the space with a current Zacks Rank #3 (Hold). Considering the present industry scenario, it might be prudent for investors to retain these stocks in their portfolios, as these are well-placed to generate growth in the long haul.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth Group: Minnesota-based UnitedHealth Group’s revenues are driven by strong performances from UnitedHealthcare and Optum. The UnitedHealthcare segment benefits from effective Medicare and Medicaid offerings, integrating affordable and attractive features that expand membership and boost premium income. This has led to multiple contract wins for the company. Optum's growth is fueled by acquisitions, advanced technology and data-driven care models. Strategic M&A and telehealth investments further enhance UNH’s nationwide reach and service efficiency.
The Zacks Consensus Estimate for UnitedHealth Group’s 2025 earnings is pegged at $16.29 per share. The consensus mark for revenues implies 11.9% growth from the year-ago figure. UNH’s earnings beat estimates in two of the last four quarters and missed the mark twice, the average negative surprise being 2.25%.
Price & Consensus: UNH
Image Source: Zacks Investment Research
Humana: Headquartered in Kentucky, Humana has maintained steady growth fueled by rising premiums and an expanding membership base. The strong performance of these plans has secured the company multiple new contracts with state agencies. Through its CenterWell brand, Humana continues to focus on meeting the healthcare needs of the nation’s senior population. Over the years, the company has also pursued strategic acquisitions, which have broadened its revenue streams.
The Zacks Consensus Estimate for Humana’s 2025 earnings is pegged at $17.08 per share, indicating a 5.4% rise from the 2024 figure. The consensus mark for 2025 revenues implies 10% growth from the 2024 figure. HUM’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average being 7.54%.
Price & Consensus: HUM
Image Source: Zacks Investment Research
Centene: Headquartered in Missouri, Centene’s revenue growth is driven by strong performance in its Medicare and Medicaid businesses, contributing to increased contract wins and expanding membership. The ongoing preference for Medicare Advantage plans among the aging U.S. population continues to fuel consistent demand for Centene’s Medicare offerings. The company pursues an inorganic growth strategy, utilizing strategic acquisitions and partnerships with healthcare providers to broaden its capabilities.
The Zacks Consensus Estimate for Centene’s 2025 earnings is pegged at $2.00 per share. The consensus mark for 2025 revenues implies 18.5% growth from the 2024 figure. CNC’s earnings outpaced estimates in three of the last four quarters and missed the mark once, the average being 75.18%.
Price & Consensus: CNC
Image Source: Zacks Investment Research
5 Stocks Set to Double
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Stock #1: A Disruptive Force with Notable Growth and Resilience
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Stock #4: Leader In a Red-Hot Industry Poised for Growth
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3 HMO Stocks in Focus Despite Rising Medical Costs, Regulatory Pressures

The S&P 500 Index ($SPX) (SPY) on Thursday closed up by +0.21%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up by +1.34%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -0.35%. December E-mini S&P futures (ESZ25) rose +0.23%, and December E-mini Nasdaq futures (NQZ25) fell -0.33%.
Stock indexes settled mixed on Thursday, with the S&P 500 posting a 6-week high and the Dow Jones Industrials climbing to a new all-time high. The broader market found underlying support on Thursday after bond yields moved lower amid a jump in weekly jobless claims, which is dovish for Fed policy. Also, managed healthcare stocks staged a rally on Thursday, a supportive factor for the overall market, and Visa shares surged more than +6% to boost the Dow Jones Industrial Average.
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However, the Nasdaq 100 fell to a 1-week low due to a sell-off in Oracle, which is viewed as a bellwether of the AI investment boom. Oracle tumbled more than 10% on Thursday, leading AI-infrastructure shares lower, after reporting Q2 cloud sales that missed estimates and raising its 2026 capital spending outlook by $15 billion to $50 billion. Oracle’s results reignited worries about tech valuations and whether the capital outlays on AI infrastructure will pay off.
US weekly initial unemployment claims rose by +44,000 to a 3-month high of 236,000, showing a weaker labor market than expectations of 220,000.
The US Sep trade deficit unexpectedly shrank to -$52.8 billion versus expectations of a widening to -$63.1 billion and the smallest deficit in 5.25 years.
The markets are discounting a 24% chance that the FOMC will cut the fed funds target range by 25 bp at the January 27-28 FOMC meeting.
Q3 corporate earnings season is drawing to a close as 496 of the 500 S&P companies have released results. According to Bloomberg Intelligence, 83% of reporting S&P 500 companies exceeded forecasts, on course for the best quarter since 2021. Q3 earnings rose +14.6%, more than doubling expectations of +7.2% y/y.
Overseas stock markets settled mixed on Thursday. The Euro Stoxx 50 rallied to a 4-week high and closed up +0.80%. China’s Shanghai Composite closed down -0.70%. Japan’s Nikkei Stock 225 closed down -0.90%.
Interest Rates
March 10-year T-notes (ZNH6) on Thursday closed up by +7.5 ticks. The 10-year T-note yield fell -0.6 bp to 4.141%. T-notes found support on Thursday on positive carryover from Wednesday when the FOMC cut its 2025 and 2026 US core PCE price estimates, and Fed Chair Powell said that he doesn't think a rate hike is anybody's base case for the Fed's next policy move. T-notes held their gains after weekly jobless claims unexpectedly rose to a 3-month high, a dovish factor for Fed policy. Decent demand for the Treasury’s $22 billion auction of 30-year T-bonds was also positive for T-notes as the auction had a bid-to-cover ratio of 2.36, right on the 10-auction average.
European government bond yields are moving lower today. The 10-year German bund yield fell -0.7 bp to 2.843%. The 10-year UK gilt yield fell -2.2 bp to 4.484%.
Swaps are discounting a 1% chance for a -25 bp rate cut by the ECB at its next policy meeting on December 18.
US Stock Movers
Cruise line operators moved higher on Thursday. Royal Caribbean Cruises Ltd (RCL) closed up more than +7% to lead gainers in the S&P 500. Also, Norwegian Cruise Line Holdings (NCLH) closed up more than +6%, and Carnival (CCL) closed up more than +5%
Managed healthcare stocks rallied on Thursday. Elevance Health (ELV) closed up more than +5%, and Centene (CNC) and Molina Healthcare (MOH) closed up more than +4%. Also, Humana (HUM) and Cigna Group (CI) closed up more than +3%. In addition, HCA Healthcare (HCA) and UnitedHealth Group (UNH) closed up more than +2%.
Fertilizer stocks rose on Thursday after Ukraine said its drones attacked two fertilizer plants in western Russia. Mosaic (MOS) closed up more than +6%, and Intrepid Potash (IPI) closed up more than +5%. Also, CF Industries Holdings (CF) closed up more than +2%.
Chip makers retreated on Thursday, weighing on the Nasdaq 100. ARM Holdings Plc (ARM), Intel (INTC), and Marvell Technology (MRVL) closed down more than -3%. Also, Nvidia (NVDA), Broadcom (AVGO), Applied Materials (AMAT), GlobalFoundries (GFS), and Micron Technology (MU) closed down more than -1%.
Oracle (ORCL) closed down more than -10% to lead losers in the S&P 500 after reporting Q2 adjusted revenue of $16.06 billion, below the consensus of $16.21 billion, and raising its 2026 capital spending outlook by $15 billion to $50 billion.
Oxford Industries (OXM) closed down more than -21% after cutting its 2026 adjusted EPS forecast to $2.20-$2.40 from a previous estimate of $2.80-$3.20, well below the consensus of $2.91.
Lovesac Co (LOVE) closed down more than -8% after cutting its 2026 net sales forecast to $685 million-$705 million from a previous forecast of $710 million-$740 million, weaker than the consensus of $713.7 million.
Stellantis NV (STLA) closed down more than -3% after BNP Paribas Exane downgraded the stock to underperform from neutral.
Intuitive Surgical (ISRG) closed down more than -1% after Citigroup downgraded the stock to neutral from buy.
Gemini Space Station Inc (GEMI) closed up more than +31% after the company’s application for a derivatives exchange was approved by the Commodity Futures Exchange Commission.
Ciena Corp (CIEN) closed up more than +8% after reporting Q4 revenue of $1.35 billion, better than the consensus of $1.29 billion.
Visa (V) closed up more than +6% to lead gainers in the Dow Jones Industrials after Bank of America Global Research upgraded the stock to buy from neutral with a price target of $382.
Abercrombie & Fitch (ANF) closed up more than +2% after Goldman Sachs initiated coverage on the stock with a buy recommendation and a price target of $120.
West Pharmaceutical Services (WST) closed up more than +1% after Nephron Research LLC upgraded the stock to buy from hold with a price target of $367.
Earnings Reports(12/12/2025)
Johnson Outdoors Inc (JOUT), SR Bancorp Inc (SRBK), Value Line Inc (VALU).
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.

Most Stocks Recover from Oracle Sell-Off

UnitedHealth Group Inc. UNH is quietly transforming its business playbook, pushing against the usual ways of delivering care and insurance. By merging insurance coverage with health services and cutting-edge technology, UNH is crafting a model that prioritizes efficiency, data-driven choices and proactive care management, setting it apart from competitors.
A key part of UNH’s strategy is the growing presence of Optum in pharmacy services, care delivery and analytics. By blending clinical insights with insurance operations, the company is moving beyond traditional coverage models and embracing a more proactive, value-driven approach. This integration enables UNH to provide more tailored and efficient solutions for both its members and providers, strengthening its competitive advantage.
Technology plays a crucial role in this transformation. The company is increasingly deploying AI, predictive analytics and digital tools to make the claims process smoother, cut down on administrative waste and boost member engagement. These tech-driven advancements not only help cut costs but also provide valuable insights for managing chronic conditions, optimizing care pathways and improving the overall quality of healthcare.
Despite facing challenges like regulatory scrutiny and rising medical costs, the company is committed to prioritizing member satisfaction. This focus puts it in a strong position to sustain growth and shape the future of healthcare delivery. In the first nine months of 2025, UNH’s total revenues grew 11.6% year over year, with 6.6% growth at Optum and 15% growth at UnitedHealthcare.
How Are Competitors Faring?
Some of UNH’s major competitors in the healthcare service provider space are Elevance Health, Inc. ELV and Humana Inc. HUM.
Through Carelon, Elevance Health is bringing together analytics, behavioral health and coordinated care models to boost outcomes and cut down on costs. ELV’s total revenues increased 13.5% year over year in the first nine months of 2025.
Humana focuses on using AI to improve patient experience, enhance care quality and achieve better health outcomes while ensuring human involvement in any clinical decision-making process. HUM’s CenterWell segment’s revenues rose 11.5% year over year in the first nine months of 2025.
UnitedHealth’s Price Performance, Valuation & Estimates
Shares of UNH have declined 36% in the year-to-date period compared with the industry’s fall of 30.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18.5, above the industry average of 15.2. UNH carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2025 earnings is pegged at $16.29 per share, implying a 41.1% drop from the year-ago period.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
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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.

Behind the Curtain: How UnitedHealth is Rewriting its Own Rules

UnitedHealth Group Incorporated UNH is taking bold steps toward AI-powered virtual assistance, aiming to transform the way members access information, navigate benefits and make healthcare choices. As consumer expectations shift toward quick and user-friendly digital experiences, the company’s strategy reflects a larger trend in the industry to modernize a system that was complex and had a slow response time.
At its heart, UNH’s virtual assistance ecosystem is designed to make high-friction tasks easier, such as checking the claim status, coverage information, locating in-network doctors or getting clarity on prior authorization rules. By automating these routine interactions, the company aims to reduce the call-center load while providing quicker, more accurate answers that keep members engaged with its digital platforms.
The standout feature is UnitedHealthcare’s conversational AI. This assistant converses in natural language to understand the intent of the call and determine the best way to assist, whether that's a self-service option or a live agent. Another feature is its Claims Assistant AI that streamlines the out-of-network claim submissions process by auto-filling medical details, enabling faster and easier payment submissions.
The increasing reliance on these AI-powered features marks a significant change in how members want to engage with their health plans. By providing easy-to-use and responsive digital touchpoints, UNH is creating a more connected and user-friendly experience, reflecting how technology can enhance satisfaction and boost confidence in healthcare engagement.
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 recently expanded its Virtual Assistant to make healthcare navigation easier and more intuitive for members. It can be accessed through the Sydney Health app and Elevance Health-affiliated health plan websites. It provides personalized help for coverage, claims and in-network providers.
Humana rolled out IBM’s conversational AI designed specifically for its Employer Group members to help provide clarity on benefits, costs and providers. By streamlining the interactions among members, agents and employers, the AI assistant empowers HUM’s members to understand their health plans better, improving overall engagement and decision-making.
UnitedHealth’s Price Performance, Valuation & Estimates
Shares of UNH have declined 34.6% in the year-to-date period compared with the industry’s fall of 29.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 18.9, above the industry average of 15.5. UNH carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2025 earnings is pegged at $16.29 per share, implying a 41.1% drop from the year-ago period.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
Be First to New Top 10 Stocks >>
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
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.

Can UNH's AI-Powered Virtual Assistance Enhance Member Experience?

Fintel reports that on December 5, 2025, Jefferies upgraded their outlook for Humana (NYSE:HUM) from Hold to Buy.
Analyst Price Forecast Suggests 15.80% Upside
As of November 17, 2025, the average one-year price target for Humana is $293.00/share. The forecasts range from a low of $233.31 to a high of $358.05. The average price target represents an increase of 15.80% from its latest reported closing price of $253.02 / share.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Humana is 116,769MM, a decrease of 7.59%. The projected annual non-GAAP EPS is 36.17.
What is the Fund Sentiment?
There are 1,807 funds or institutions reporting positions in Humana. This is an decrease of 44 owner(s) or 2.38% in the last quarter. Average portfolio weight of all funds dedicated to HUM is 0.25%, an increase of 8.53%. Total shares owned by institutions decreased in the last three months by 0.97% to 137,901K shares. The put/call ratio of HUM is 0.63, indicating a bullish outlook.
What are Other Shareholders Doing?
Dodge & Cox holds 11,338K shares representing 9.43% ownership of the company. In its prior filing, the firm reported owning 11,353K shares , representing a decrease of 0.13%. The firm increased its portfolio allocation in HUM by 2.06% over the last quarter.
DODGX - Dodge & Cox Stock Fund holds 7,552K shares representing 6.28% ownership of the company. In its prior filing, the firm reported owning 7,180K shares , representing an increase of 4.91%. The firm decreased its portfolio allocation in HUM by 5.72% over the last quarter.
Jpmorgan Chase holds 5,078K shares representing 4.22% ownership of the company. In its prior filing, the firm reported owning 3,013K shares , representing an increase of 40.66%. The firm decreased its portfolio allocation in HUM by 82.65% over the last quarter.
Pzena Investment Management holds 4,031K shares representing 3.35% ownership of the company. In its prior filing, the firm reported owning 4,077K shares , representing a decrease of 1.13%. The firm increased its portfolio allocation in HUM by 4.58% over the last quarter.
Eagle Capital Management holds 3,965K shares representing 3.30% ownership of the company. In its prior filing, the firm reported owning 3,949K shares , representing an increase of 0.40%. The firm increased its portfolio allocation in HUM by 3.16% over the last quarter.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	23.89 21.39
Price/Sales	0.31 3.02
P/B	2.05 2.24
P/FCF	15.42 18.82

Indicator	TTM Median
ROE	8.98 24.85
ROA	3.19 6.36
ROI	5.32 9.89
Net Worth	37.67 0.21
Quick Ratio	0.00 1.71
Current Ratio	1.95 2.80

Indicator	TTM Median
Net Profit Margin	1.28 11.05
Operating Margin	2.68 14.25
Gross Margin	15.03 68.81
Return on tangible equity	19.89 52.87

Indicator	TTM Median
EPS	11.58 0.37
EPS Forecast	9.98 0.37
Revenue	32.39B 17.00M
Gross Profit	4.82B —
EBITDA	1.31B —

Humana Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue