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 appears to be a large and profitable business with strong revenue and a significant liquidity cushion, but the market is already pricing in a fair amount of optimism. Its P/E ratio of 36.2 is notably above the industry median, and its P/FCF is also above average, which limits the potential for further re-rating. At the same time, its P/S ratio is very low relative to the sector, suggesting that the company looks cheap on a revenue basis, but this argument is weakened by weak profitability. Net profit margin, operating margin, and gross margin are all significantly below industry benchmarks and, over recent periods, have generally not shown sustained improvement. ROE, ROA, and ROI are also noticeably below the median, and their trend rather points to moderate pressure on capital efficiency. A key strength remains scale: revenue, assets, cash, and equity are all high, while profit and EBITDA remain positive and significant in absolute terms. The debt burden does not appear critical, but debt/equity is above the industry median, and long-term debt remains substantial, so the balance sheet cannot be called risk-free. The quick ratio is zero, which is a weak signal for short-term liquidity, although the current ratio is above 1 and partially offsets this risk. Dividend yield has fallen to zero, so the company has lost one of the valuation support factors for an income-oriented investor. EPS and forward EPS trends show profitability, but sharp quarterly fluctuations and weak margins do not allow for an aggressive upward revision of the target valuation. Overall, the fundamentals support a moderately cautious view: the business is large and profitable, but the quality of profitability and the valuation multiples do not justify a strong increase in the forecast. For an investor, this means that fair value should reflect the business’s resilience, but with a discount for weak efficiency and the absence of dividend support.

Humana Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал. Медведи в растерянности.

Strong index, significantly down. The bears are confused.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, без изменений. Рынок на стороне медведей.

Strong index, flat. The market is on the bears' side.

Сильный индекс, значительно упал. Отток средств из лонгов на высоком уровне.

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

Сильный индекс, значительно вырос. Приток средств в шорты на высоком уровне.

Strong index, significantly up. Inflow of funds into shorts at a high level.

Humana maintains scale and profitability, but its high earnings valuation is paired with weak margins, low returns on capital, and no dividends.

The S&P 500 Index ($SPX) (SPY) closed down by -1.11% on Wednesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.09%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.02%. December E-mini S&P futures (ESZ26) fell -1.16%, and December E-mini Nasdaq futures (NQZ26) fell -2.10%.
Stock indexes sold off sharply on Wednesday, with the S&P 500 falling to a 1.5-week low and the Nasdaq 100 dropping to a 3.5-week low. Inflation woes dampened market sentiment and sparked stock liquidation on Wednesday after US September consumer prices rose more than expected, reinforcing speculation that the Fed will keep interest rates higher for longer amid sticky price pressures. The chance of a 25 bp Fed rate hike at this month’s FOMC meeting rose to 37% from 22% before the CPI report. Also, the rout in chipmakers continued Wednesday, weighing on the overall market.
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Wednesday’s broader market slump sparked defensive buying of health care and pharmaceutical stocks, limiting losses in the Dow Jones industrials.
US Sep CPI rose +3.7% y/y, stronger than expectations of +3.6% y/y. Sep core CPI rose +2.6% y/y, stronger than expectations of 2.5% y/y.
The Fed Beige Book was hawkish, noting that a majority of the twelve Fed districts in the six weeks through October 5 reported economic growth, and half saw robust or intensifying price pressures.
Stocks and bonds garnered some support Wednesday on comments from Fed Vice Chair Michelle Bowman, who signaled she favors keeping Fed policy steady at this month's FOMC meeting when she said, "We have some time to wait and see how financial conditions and the economy evolve before we decide that we need to take any more action" on interest rates.
US MBA mortgage applications fell -2.7% in the week ended October 9, with the purchase mortgage sub-index down -4.0% and the refinancing mortgage sub-index down -0.4%. The average 30-year fixed-rate mortgage rose +1 bp to a 2.75-year high of 7.50% from 7.49% the prior week.
China's trade news was better than expected, supporting global growth prospects. China's Sep exports rose +36.3% y/y, stronger than expectations of +25.7% y/y and the most in 7 months. Sep imports rose +31.0% y/y, stronger than expectations of +25.0% y/y.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%.
Nov WTI crude oil prices (CLX26) closed up more than +1% on Wednesday as Yemen's Houthi rebels launched multiple drone and missile attacks across Saudi Arabia, including energy infrastructure. Also, Iranian attacks on shipping attempting to transit the Strait of Hormuz have increased in recent weeks, threatening a rebound in energy supplies from the Middle East.
Markets are discounting a 37% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 closed up +0.38%. China's Shanghai Composite closed down -0.89%. Japan's Nikkei-225 Stock Average closed down -0.05%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +4.5 ticks on Wednesday. The 10-year T-note yield fell -2.5 bp to 5.183%. T-note prices recovered from early losses on Wednesday and settled higher as a slump in equity markets fueled short-covering in T-notes. Also, dovish comments on Wednesday from Fed Vice Chair Bowman were bullish for T-notes when said she sees no urgent need for the Fed to raise interest rates.
T-notes initially retreated on Wednesday on the stronger-than-expected US Sep CPI report, which boosted the chance of a Fed rate hike later this month to 37% from 22% before the report. Also, Wednesday’s +1% increase in WTI crude oil has raised inflation expectations and is bearish for T-notes. In addition, the Fed Beige Book was negative for T-notes, noting intensifying price pressures in more than half of the Fed’s districts.
European government bond yields moved lower on Wednesday. The 10-year German bund yield fell -0.3 bp to 3.466%. The 10-year UK gilt yield fell -2.3 bp to 5.424%.
The German Sep wholesale price index rose +8.7% y/y from +6.8% y/y in Aug, the strongest pace of increase in nearly 3.5 years.
Markets are discounting a 12% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks sold off Wednesday, weighing on the overall market. The iShares Semiconductor ETF (SOXX) fell to a 3.5-week low and closed down more than -4%. CoreWeave closed down more than -15% to lead losers in the Nasdaq 100, and Lumentum Holdings (LITE) closed down more than -8%. Also, Marvell Technology (MRVL) closed down more than -7%, and ARM Holdings Plc (ARM) closed down more than -6%. In addition, Advanced Micro Devices (AMD) and SanDisk (SNDK) closed down more than -5%, and Lam Research (LRCX), Seagate Technology Holdings Plc (STX), Microchip Technology (MCHP), Intel (INTC), and Western Digital (WDC) closed down more than -4%.
The Magnificent Seven technology stocks fell on Wednesday, weighing on the broader market. Nvidia (NVDA) and Meta Platforms (META) closed down more than -3%, and Tesla (TSLA) closed down more than -2%. Also, Alphabet (GOOGL), Amazon.com (AMZN), and Microsoft (MSFT) closed down more than -1%. Bucking the trend, Apple (AAPL) closed up +0.50%.
Cybersecurity stocks weakened on Wednesday, weighing on the overall market. Cloudflare (NET) and Okta (OKTA) closed down more than -6%, and Palo Alto Networks (PANW) closed down more than -5%. Also, Crowdstrike Holdings (CRWD) and SentinelOne (S) closed down more than -4%, and Fortinet (FTNT) and Zscaler (ZS) closed down more than -3%.
Cryptocurrency-exposed stocks fell on Wednesday after Bitcoin (^BTCUSD) fell more than -1%. Iren Ltd (IREN) closed down more than -12%, and MARA Holdings (MARA) and Riot Platforms (RIOT) closed down more than -9%. Also, Galaxy Digital Holdings (GLXY) and Robinhood Markets (HOOD) closed down more than -8%, and Circle Internet Group (CRCL), BitMine Immersion Technologies (BMNR), and Strategy (MSTR) closed down more than -5%. On addition, Coinbase Global (COIN) and Bullish (BLSH) closed down more than -4%.
Health insurance stocks moved higher on Wednesday as a defensive play amid the broader market rout. UnitedHealth Group (UNH) closed up more than +4% to lead gainers in the S&P 500 and Dow Jones Industrials. Also, CVS Health Corp (CVS), Cardinal Health (CAH), and United Health Services (UHS) closed up more than +3%, and HCA Healthcare (HCA) and the Cigna Group (CI) closed up more than +2%. In addition, Centene (CNC) and Humana (HUM) closed up more than +1%.
Defensive pharmaceutical stocks rallied on Wednesday amid the broader market slump. Amgen (AMGN), Eli Lilly (LLY), Gilead Sciences (GILD), Merck & Co (MRK), Pfizer (PFE), and Regeneron Pharmaceuticals (REGN) closed up more than +3%, and Vertex Pharmaceuticals (VRTX) closed up more than +2%.
Dell Technologies (DELL) closed down more than -11% to lead losers in the S&P 500 , Hewlett Packard Enterprise (HPE) closed down more than -8%, and NetApp (NTAP) closed down more than -6% after Barclays downgraded the stocks to equal weight from overweight.
Bank of America (BAC) closed down more than -4% after reporting Q3 equities trading revenue ex-DVA of $2.51 billion, weaker than the consensus of $2.63 billion.
State Street (STT) closed down more than -3% after reporting Q3 revenue of $4.00 billion, weaker than the consensus of $4.04 billion.
Progressive (PGR) closed down more than -3% after reporting Q3 net premiums written of $22.30 billion, below the consensus of $22.50 billion.
Liquidia (LQDA) closed up more than +27% after reaching a global settlement resolving all pending litigation with United Therapeutics.
Earnings Reports (10/15/2026)
Alcoa Corp (AA), Bank of New York Mellon Corp/The (BNY), Charles Schwab Corp/The (SCHW), First Horizon Corp (FHN), Interactive Brokers Group Inc (IBKR), JB Hunt Transport Services Inc (JBHT), Marsh & McLennan Cos Inc (MRSH), PNC Financial Services Group Inc (PNC), Prologis Inc (PLD), US Bancorp (USB).
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 Sharply Lower on Inflation Woes and Slumping Chipmakers

Humana Inc. HUM is forming a joint venture with funds and accounts managed by HPS Investment Partners, part of BlackRock, to own nearly 150 CenterWell Senior Primary Care clinics. BlackRock will acquire Welsh, Carson, Anderson & Stowe’s (“WCAS”) existing equity stake, valued at approximately $2.8 billion, and hold majority ownership. CenterWell will retain minority ownership and continue managing and operating the clinics.
The new venture is expected to deploy additional capital over the next two years to support existing operations, open new clinics and pursue strategic acquisitions. The arrangement will also eliminate existing put options, which Humana expects to significantly reduce related balance sheet liabilities, with BlackRock receiving certain protections. Greater financial flexibility and a lower cost of capital could help Humana fund growth more efficiently. The transaction is expected to close in the fourth quarter of 2026, without materially affecting 2026 adjusted earnings guidance of at least $9 per share.
The partnership could accelerate CenterWell’s expansion of senior-focused, value-based primary care. A broader clinic network may improve care coordination, support chronic disease management and help reduce avoidable hospital visits. BlackRock’s capital resources could enable expansion without requiring Humana to fund the entire investment independently. However, returns will depend on patient volumes, staffing costs and the ability of new locations to achieve sustainable profitability.
Looking ahead, CenterWell will have the option to purchase clinics from the joint venture beginning in 2028. This gives Humana flexibility to increase ownership as the business matures. If any remain by the end of 2033, BlackRock can initiate a sale process, with CenterWell retaining the right to make the first offer.
If executed well, the partnership could strengthen Humana’s healthcare-services strategy by supporting capital-efficient expansion, improving clinic-level profitability and generating sustainable long-term returns.
HUM’s Price Performance
Over the past year, HUM’s shares have surged 60.3% compared with the industry’s growth of 10.4%.
HUM’s Zacks Rank & Key Picks
HUM currently carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the broader medical space are Phibro Animal Health Corporation PAHC, Corcept Therapeutics Incorporated CORT and TG Therapeutics, Inc. TGTX, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Phibro Animal Health’s current-year earnings is pegged at $3.50 per share, suggesting 8.7% year-over-year growth. PAHC beat earnings estimates in each of the trailing four quarters, with the average surprise being 18.4%. The consensus estimate for current-year revenues is pegged at $1.6 billion, suggesting 3.8% year-over-year growth.
The Zacks Consensus Estimate for Corcept Therapeutics’ current-year earnings of $1.86 per share has remained stable over the past seven days. CORT beat earnings estimates in one of the trailing four quarters, met once and missed twice. The consensus estimate for current-year revenues is pegged at $1.1 billion, suggesting 50.3% year-over-year growth.
The Zacks Consensus Estimate for TG Therapeutics’ current-year earnings of 94 cents per share has witnessed one upward revision in the past seven days, against no movement in the opposite direction. The consensus estimate for TGTX’s current-quarter revenues is pegged at $965.2 million, suggesting 56.6% year-over-year growth.
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Humana's CenterWell Expansion Gets a Boost From BlackRock's Capital

The U.S. healthcare industry continues to navigate rising medical costs, changing Medicare Advantage dynamics and evolving demand for healthcare services. These factors are shaping the growth prospects and profitability of managed care companies, making cost management, membership trends and operational efficiency important considerations when assessing their long-term performance.
UnitedHealth Group Incorporated UNH and Humana Inc. HUM are major players in the U.S. health insurance market, with significant exposure to government-sponsored healthcare programs, particularly Medicare Advantage. However, their business profiles differ. UnitedHealth combines its insurance operations with Optum’s healthcare services, pharmacy care and technology businesses, while Humana has a stronger concentration in health insurance, particularly Medicare-focused coverage, alongside its CenterWell healthcare services platform. These differences influence their revenue mix, exposure to medical cost pressures and approaches to growth.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for UNH
UnitedHealth’s broad healthcare platform provides several avenues for growth through UnitedHealthcare and Optum. UnitedHealthcare serves employer-sponsored, individual, Medicare and Medicaid members, while Optum provides health services, pharmacy benefits and technology solutions. In the second quarter of 2026, UnitedHealthcare generated $86 billion in revenues, while Optum supported more than 120 million consumers. This combination gives UNH exposure to both health coverage and services that support care delivery.
UnitedHealthcare’s Medicare Advantage business remains a central driver of its performance. In the second quarter of 2026, UNH's consolidated medical care ratio improved 270 basis points year over year to 86.7%, benefiting from pricing discipline, benefit design changes, a favorable membership mix, medical cost management initiatives and net favorable prior period medical development. UNH expects Medicare Advantage enrollment to decline by approximately 1.1 million members in 2026, while Medicare margins are projected to exceed 3%. Continued underwriting discipline and selective market participation in 2027 could support more consistent earnings and improve the sustainability of its insurance business. The company is also working to improve its commercial and Medicaid businesses, where cost pressures remain a concern.
OptumHealth is working to strengthen its integrated value-based care model, with initiatives aimed at improving care coordination and reducing costly hospital visits. Enhanced support during care transitions has lowered hospitalizations by approximately 10% in the Western and Southern regions where the program was implemented. Expanding home-based care and improving clinical workflows could further support care quality and cost efficiency. Optum Rx is moving toward more transparent, fee-based arrangements and expects more than 95% of its clients to be on 100% manufacturer rebate pass-through by the end of 2026.
Technology-led modernization is becoming an important part of UnitedHealth's strategy to simplify healthcare operations. The company plans to invest nearly $1.5 billion in AI-related initiatives in 2026 to streamline administrative processes, improve customer experiences and boost productivity. UnitedHealthcare plans to eliminate 30% of prior authorization volume and nearly two-thirds of pediatric prior authorization requirements by the end of 2026. Meanwhile, Optum Insight is developing AI-enabled solutions for clinical documentation, coding and administrative workflows. These initiatives could help streamline operations, improve service efficiency and create additional revenue opportunities through healthcare technology solutions. In the second quarter of 2026, UNH’s total operating costs declined 2.3% year over year.
Financially, UNH is in a solid position. It ended the second quarter of 2026 with $31.5 billion in cash and short-term investments, sufficient to cover its short-term borrowings and current maturities of long-term debt, which stand at $3.8 billion. Its total debt-to-capital of 41.2% is below HUM’s 43.1% and the industry’s 41.5%. In the first half of 2026, the company paid dividends worth $4.1 billion. UNH repurchased shares worth $4 billion through mid-July 2026.
The Case for HUM
Humana maintains a significant presence in the U.S. managed healthcare market, supported by its established Medicare Advantage franchise and expanding healthcare services operations. Its broad membership base, growing CenterWell platform and increasing Medicaid footprint provide multiple avenues for business expansion.
Humana's expanding Medicare Advantage membership offers considerable scope for revenue growth. In the second quarter of 2026, HUM’s total Medicare Advantage memberships grew 23.8% year over year. The company expects individual Medicare Advantage membership to grow approximately 25% in 2026, supported by new sales and improved retention. Humana is also working to improve its Medicare Advantage margins through pricing discipline, benefit adjustments and a more selective approach to plan offerings for 2027.
CenterWell is emerging as a key growth engine as Humana expands its value-based care capabilities. Its CenterWell Primary Care business served approximately 622,000 patients at June-end, reflecting 26.7% growth from December 2025. Acquisitions, including MaxHealth, and expansion across physician networks are widening its reach. HUM is also strengthening its Medicaid presence, with membership increasing by approximately 93,000 in the first half of 2026 and a new statewide Illinois contract scheduled to begin in January 2027. These initiatives could diversify revenues and support earnings growth.
As of June 30, 2026, the company had cash and cash equivalents of $6.9 billion, with short-term debt of $2.3 billion, which implies a solid capital position. Humana has been returning excess capital to its shareholders in the past several years. The company repurchased shares worth approximately $108 million and paid dividends of $214 million during the first six months of 2026. However, its dividend yield of 0.9% is below UNH’s 2.5%.
Rising healthcare expenses remain a concern for Humana's profitability. In the second quarter of 2026, consolidated operating expenses increased 26.3% year over year. Meanwhile, the Insurance segment's benefit ratio deteriorated 130 basis points year over year to 91.2%, primarily due to the higher benefit costs associated with new Medicare Advantage members and Star Ratings-related revenue pressure. With the full-year benefit ratio projected to be 92.75%, with a variability margin of plus or minus 25 basis points, elevated healthcare expenses could continue to weigh on margins despite ongoing cost-control initiatives.
Price Performance Comparison
Over the past year, HUM’s shares have outperformed UNH, the industry and the S&P 500.
Price Performance – UNH, HUM, Industry & S&P 500
How Do Estimates Compare for UNH & HUM?
The Zacks Consensus Estimate favors UNH at this stage. The consensus estimate for UNH’s 2026 earnings is pinned at $19.85 per share, indicating a 21.4% increase from a year ago. Over the past 60 days, the earnings estimate has increased by 14 cents. Meanwhile, the consensus estimate for revenues suggests a 0.2% decline. UNH beat earnings estimates in each of the past four quarters, with an average surprise of 12.1%.
UnitedHealth Group Incorporated Price, Consensus and EPS Surprise
On the other hand, the Zacks Consensus Estimate for HUM’s 2026 revenues indicates 24.3% year-over-year growth, but the consensus estimate for HUM’s 2026 earnings is pinned at $9.12 per share, signaling a massive 46.8% decline. The earnings estimate remained stable over the past 60 days. HUM beat earnings estimates in each of the past four quarters, with an average surprise of 9.6%.
Humana Inc. Price, Consensus and EPS Surprise
Valuation: UNH vs. HUM
From a valuation standpoint, both stocks trade above the industry average, but HUM carries the higher forward earnings multiple. UNH trades at 16.91X forward 12-month earnings, compared with 27.79X for HUM and 15.15X for the industry. This gives UNH a relative valuation advantage.
Image Source: Zacks Investment Research
UNH currently trades below its average analyst price target of $481.52, implying an attractive 28.1% potential upside from current levels. Meanwhile, HUM trades below its average analyst price target of $427.09, implying a 7.7% potential upside from current levels.
Conclusion
Both UnitedHealth and Humana have established positions in the managed healthcare market, supported by their extensive membership bases and expanding healthcare services capabilities. Humana benefits from strong Medicare Advantage membership growth and CenterWell's expanding operations. However, elevated medical costs and margin pressures remain concerns. Meanwhile, UnitedHealth's diversified business model, improving Medicare Advantage profitability, growing Optum platform and financial flexibility provide a more balanced foundation for sustainable growth.
UnitedHealth's improving business fundamentals and broader growth opportunities make it the more compelling investment choice at present. UNH currently carries a Zacks Rank #2 (Buy), while Humana has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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).

UnitedHealth vs. Humana: Which Healthcare Giant Has the Edge?

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

The S&P 500 Index ($SPX) (SPY) closed up by +0.51% on Friday, the Dow Jones Industrial Average ($DOWI) (DIA) closed up by +0.93%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.42%. December E-mini S&P futures (ESZ26) rose +0.47%, and December E-mini Nasdaq futures (NQZ26) rose +0.39%.
Stock indexes settled higher on Friday amid a slide in crude oil prices. WTI crude oil tumbled more than -2% on Friday on hopes for diplomacy to end the US-Iran war that would reopen the Strait of Hormuz. Also, strength in chipmakers and AI stocks on Friday supported stocks amid optimism over AI and demand for AI infrastructure.
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Friday’s US economic news was better than expected and supportive for stocks after Aug nondefense ex-aircraft capital goods new orders, a proxy for capital spending, rose +1.6% m/m, stronger than expectations of +0.6% m/m. July was also revised upward to +0.6% m/m from the previously reported unchanged m/m. In addition, the University of Michigan US Sep consumer sentiment index was unexpectedly revised upward by +0.3 to 48.1, stronger than expectations of a downward revision to 47.5.
Gains in stock indexes were limited on Friday after the 10-year T-note yield climbed to a new 19-year high of 5.23% on fears the Fed will continue to raise interest rates. New York Fed President John Williams said Friday that the Fed needs to return inflation to target, and it can't ignore supply shocks if they have a persistent effect on prices.
Nov WTI crude oil prices (CLX26) fell more than -2% on Friday after Iran proposed a 7-day plan to end the war and reopen the Strait of Hormuz. Under the conditions Iran has set for the agreement, all hostilities would end during the seven days, including in Lebanon; the US would release Iran’s frozen assets (estimated at $12 billion), waive sanctions on Iranian oil, and lift the naval blockade on Iran. Then, on the last day, the Strait of Hormuz would be reopened. Iran’s foreign minister, Abbas Araghchi, said that after the seven days, comprehensive negotiations over Iran’s nuclear program would immediately begin.
Markets are discounting a 64% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled higher on Friday. The Euro Stoxx 50 closed up +0.48%. China's Shanghai Composite did not trade Friday, with markets in China closed for the Mid-Autumn Festival holiday. Japan's Nikkei-225 Stock Average rose to a 2.5-week high and closed up +1.30%.
Interest Rates
December 10-year T-notes (ZNZ6) settled unchanged on Friday. The 10-year T-note yield fell -1.2 bp to 5.165%. Dec T-notes recovered from early losses on Friday and moved higher after WTI crude oil fell more than -2%, which eased inflation expectations and sparked some short covering.
T-notes initially moved lower on Friday, and the 10-year T-note yield rose to a new 19-year high of 5.225%. T-notes came under pressure on hawkish comments from New York Fed President John Williams, who stressed that the Fed needs to return inflation to target. T-notes were also undercut by better-than-expected US economic news, including Aug nondefense ex-aircraft capital goods new orders and the University of Michigan Sep US consumer sentiment index.
European government bond yields were mixed on Friday. The 10-year German bund yield rose to a 17-year high of 3.632% and finished up +0.2 bp to 3.601%. The 10-year UK gilt yield fell from a 1.5-week high of 5.408% and finished down -1.5 bp to 5.366%.
The German Oct GfK consumer confidence index fell -3.8 to a 5-month low of -30.6, weaker than expectations of -27.2.
Markets are discounting a 42% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI stocks rallied on Friday, supporting the overall market. The iShares Semiconductor ETF (SOXX) closed up more than +1%. Microchip Technology (MCHP) closed up more than +5% to lead gainers in the Nasdaq 100, and ON Semiconductor (ON) closed up more than +5%. Also, NXP Semiconductors NV (NXPI) and Qualcomm (QCOM) closed up more than +3%, and Analog Devices (ADI), Applied Materials (AMAT), Lam Research (LRCX), and Texas Instruments (TXN) closed up more than +2%. In addition, ARM Holdings Plc (ARM), SanDisk (SNDK), ASML Holding NV (ASML), Western Digital (WDC), Marvell Technology (MRVL), and Seagate Technology Holdings Plc (STX) closed up more than +1%.
Cybersecurity stocks were under pressure on Friday, led by a -10% decline in Zscaler (ZS) after announcing Ross Tackett as the new chief revenue officer, effective October 1. Also, Gen Digital (GEN) closed down more than -6% to lead losers in the S&P 500, and SentinelOne (S) closed down more than -6%. In addition, Okta (OKTA) closed down more than -5%, and Palo Alto Networks (PANW) closed down more than -3% to lead losers in the Nasdaq 100. Finally, Fortinet (FTNT), CrowdStrike Holdings (CRWD), and Cloudflare (NET) closed down more than -2%.
Atlas Energy Solutions (AESI) closed up more than +13% after announcing a purchase agreement with Wyoming Machinery Company for $340.5 million of Balance of Plant equipment for a power generation project.
People Inc. (PPLI) closed up more than +11% after the Wall Street Journal reported that MGM Resorts International is discussing making a bid for the company.
Humana (HUM) closed up more than +4% after Barclays upgraded the stock to overweight from equal weight with a price target of $515.
Akamai Technologies (AKAM) closed up more than +3% after agreeing to a seven-year $11.6 billion deal to provide computing power to Anthropic.
Twilio (TWLO) closed down more than -7% after HSBC downgraded the stock to reduce from hold with a price target of $211.
Otis Worldwide (OTIS) closed down more than -1% after Wells Fargo & Co initiated coverage on the stock with a recommendation of underweight.
Comcast Corp (CMCSA) closed down -1% after KeyBanc Capital Markets downgraded the stock to underweight from sector weight with a price target of $18.
Earnings Reports (9/28/2026)
IDT Corp (IDT), Jefferies Financial Group Inc (JEF), Liberty Live Holdings Inc (LLYVA), ReposiTrak Inc (TRAK), SR Bancorp Inc (SRBK), Vail Resorts Inc (MTN).
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

Stocks Settle Higher as Crude Prices Fall on US-Iran Deal Hopes

The S&P 500 Index ($SPX) (SPY) is up by +0.25% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.36%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.30%. December E-mini S&P futures (ESZ26) are up +0.25%, and December E-mini Nasdaq futures (NQZ26) are up +0.31%.
Stock indexes are moving higher today amid weakness in crude oil prices. WTI crude oil is down more than -1% on a report that US and Iranian negotiators are exploring a phased deal to reopen the Strait of Hormuz. Also, strength in chipmakers and AI stocks today is also a supportive factor for stocks amid optimism over AI and demand for AI infrastructure.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Today’s US economic news was better than expected and supportive for stocks after Aug nondefense ex-aircraft capital goods new orders, a proxy for capital spending, rose +1.6% m/m, stronger than expectations of +0.6% m/m. July was also revised upward to +0.6% m/m from the previously reported unchanged m/m. Also, the University of Michigan US Sep consumer sentiment index was unexpectedly revised upward by +0.3 to 48.1, stronger than expectations of a downward revision to 47.5.
Stock indexes fell from their highs today as bond yields rose. The 10-year T-note yield climbed to a new 19-year high of 5.23% today on concerns the Fed will continue to raise interest rates after New York Fed President John Williams said the Fed can't ignore supply shocks if they have a persistent effect on prices and it needs to return inflation to target.
Nov WTI crude oil prices (CLX26) are down more than -1% today as US and Iranian negotiators explored a phased deal that would see Iran reopen the Strait of Hormuz. The Financial Times reported that Iranian Foreign Minister Abbas Araghchi had submitted a new seven-day proposal to the US to reopen Hormuz if certain conditions were met.
Markets are discounting a 66% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are higher today. The Euro Stoxx 50 is up +0.37%. China's Shanghai Composite did not trade today, with markets in China closed for the Mid-Autumn Festival holiday. Japan's Nikkei-225 Stock Average rose to a 2.5-week high and closed up +1.30%.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -9 ticks today. The 10-year T-note yield is up +2.3 bp to 5.225%. Dec T-notes are under pressure today and are just above Thursday’s 19-year nearest-futures low, and the 10-year T-note yield rose to a new 19-year high of 5.223%. T-notes gave up an overnight advance and turned lower on hawkish comments from New York Fed President John Williams, who stressed that the Fed needs to return inflation to target. T-notes also fell today on better-than-expected US economic news, including Aug nondefense ex-aircraft capital goods new orders and the University of Michigan Sep US consumer sentiment index. T-notes initially moved higher today as WTI crude oil prices fell more than -1%, easing inflation expectations and sparking some mid short covering.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 17-year high of 3.632% and is up +2.8 bp to 3.628%. The 10-year UK gilt yield climbed to a 1.5-week high of 5.408% and is up +1.6 bp to 5.397%.
The German Oct GfK consumer confidence index fell -3.8 to a 5-month low of -30.6, weaker than expectations of -27.2.
Markets are discounting a 47% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI stocks are moving higher today, supporting the overall market. The iShares Semiconductor ETF (SOXX) is up more than +1%. ARM Holdings Plc (ARM), NXP Semiconductors NV (NXPI), and Qualcomm (QCOM) are up more than +3%, and Microchip Technology (MCHP), Analog Devices (ADI), and Texas Instruments (TXN) are up more than +2%. Also, SanDisk (SNDK), ASML Holding NV (ASML), Applied Materials (AMAT), and Lam Researach (LRCX) are up, more than +1%.
Cybersecurity stocks are under pressure today, led by an -8% decline in Zscaler (ZS) after announcing Ross Tackett as the new chief revenue officer, effective October 1. Also, Okta (OKTA) and SentinelOne (S) are down more than -3%, and Palo Alto Networks (PANW), Fortinet (FTNT) and Gen Digital (GEN) are down more than -2%. In addition, CrowdStrike Holdings (CRWD) is down more than -1%.
Energy stocks and service providers are weaker today, with WTI crude oil down more than -1%. Valero Energy (VLO) and Devon Energy (DVN) are down more than -2%, and Phillips 66 (PSX), Marathon Petroleum (MPC), APA Corp (APA), ConocoPhillips (COP), Diamondback Energy (FANG), and Occidental Petroleum (OXY) are down more than -1%.
Atlas Energy Solutions (AESI) is up more than +19% after announcing a purchase agreement with Wyoming Machinery Company for $340.5 million of Balance of Plant equipment for a power generation project.
People Inc. (PPLI) is up more than +9% after the Wall Street Journal reported that MGM Resorts International is discussing making a bid for the company.
Humana (HUM) is up more than +8% to lead gainers in the S&P 500 after Barclays upgraded the stock to overweight from equal weight with a price target of $515.
Akamai Technologies (AKAM) is up more than +7% after agreeing to a seven-year $11.6 billion deal to provide computing power to Anthropic.
Twilio (TWLO) is down more than -6% after HSBC downgraded the stock to reduce from hold with a price target of $211.
Lionsgate Studios (LION) is down more than -4% after JPMorgan Chase initiated coverage on the stock with a recommendation of underweight and a price target of $9.
Comcast Corp (CMCSA) is down more than -2% after KeyBanc Capital Markets downgraded the stock to underweight from sector weight with a price target of $18.
Earnings Reports (9/25/2026)
None.
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 Supported by Lower Crude Prices and Strength in Chipmakers

In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Entergy Corp (Symbol: ETR) has taken over the #230 spot from Humana Inc. (Symbol: HUM), according to The Online Investor.
Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of Entergy Corp (Symbol: ETR), the market cap is now $46.30 billion, versus Humana Inc. (Symbol: HUM) at $45.00 billion.
Below is a chart of Entergy Corp versus Humana Inc. plotting their respective size rank within the S&P 500 over time (ETR plotted in blue; HUM plotted in green):
Below is a three month price history chart comparing the stock performance of ETR vs. HUM:
Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these rankings daily.
Examine the full ETR market cap history vs. the full HUM market cap history.
At the closing bell, ETR is off about 1.1%, while HUM is up about 1.7% on the day Thursday.
Further ETR Research:

Entergy Moves Up In Market Cap Rank, Passing Humana

(RTTNews) - TempraMed Technologies Ltd. (VIVI.CN), a medical-technology company, announced it entered into a distribution agreement dated August 25, 2026, with CenterWell Pharmacy, Inc., the pharmacy services brand of Humana Inc. (HUM), a U.S. health insurer.
TempraMed's portfolio includes temperature-controlled medication-storage solutions that operate without batteries or external power. Its commercial product portfolio includes VIVI Cap, VIVI Cap Smart, VIVI Epi, and VIVI Med.
Humana, as a provider of medical and speciality insurance products, operates in two segments: Insurance and CenterWell.
HUM has traded between $163.11 and $428.88 over the last year. The stock closed Wednesday's trade at $374.78, up 0.75%.In the overnight market, HUM is down 0.21% at $374.
VIVI.CN closed Wednesday's trade at C$0.36.
For more such biotechstock news visit rttnews.com.

TempraMed Inks Distribution Agreement With Humana's CenterWell Pharmacy

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in 3M Co (Symbol: MMM), where a total of 13,301 contracts have traded so far, representing approximately 1.3 million underlying shares. That amounts to about 46.6% of MMM's average daily trading volume over the past month of 2.9 million shares. Particularly high volume was seen for the $170 strike call option expiring September 25, 2026, with 4,025 contracts trading so far today, representing approximately 402,500 underlying shares of MMM. Below is a chart showing MMM's trailing twelve month trading history, with the $170 strike highlighted in orange:
Humana Inc. (Symbol: HUM) saw options trading volume of 4,035 contracts, representing approximately 403,500 underlying shares or approximately 43.6% of HUM's average daily trading volume over the past month, of 926,245 shares. Particularly high volume was seen for the $110 strike put option expiring January 15, 2027, with 2,300 contracts trading so far today, representing approximately 230,000 underlying shares of HUM. Below is a chart showing HUM's trailing twelve month trading history, with the $110 strike highlighted in orange:
And Walmart Inc (Symbol: WMT) saw options trading volume of 97,232 contracts, representing approximately 9.7 million underlying shares or approximately 41.3% of WMT's average daily trading volume over the past month, of 23.5 million shares. Especially high volume was seen for the $115 strike call option expiring September 25, 2026, with 16,421 contracts trading so far today, representing approximately 1.6 million underlying shares of WMT. Below is a chart showing WMT's trailing twelve month trading history, with the $115 strike highlighted in orange:
For the various different available expirations for MMM options, HUM options, or WMT options, visit StockOptionsChannel.com.
Further MMM Research:

Noteworthy Wednesday Option Activity: MMM, HUM, WMT

The Cigna Group CI is expanding its use of artificial intelligence as healthcare costs remain elevated. The company is combining AI-driven insights with clinical expertise to identify emerging health needs earlier and guide members toward appropriate care. This approach could help address costly interventions before conditions become more severe, while also improving the overall healthcare experience.
Its expanded AI-enabled care coordination capabilities can identify conditions such as cancer, heart disease and high-risk pregnancies at an earlier stage. Cigna expects the expanded capabilities to reach 20% more customers with emerging complex health needs. Customers participating in these programs have reduced medical costs by about $2,000 annually on average, while early engagement has contributed to a 42% reduction in avoidable inpatient stays.
It is also applying AI to specialty pharmacy through Pharmacy Forward. The program is designed to shorten the time between prescription and treatment while reducing administrative work for clinicians. Cigna expects the initiative to cut average time to therapy by half while reducing clinicians’ documentation time by as much as 50%. These efforts complement broader moves toward specialty generics and biosimilars, which are helping lower drug costs for patients and clients.
Still, AI alone will not resolve the industry’s cost pressures. CI’s medical cost trend remained elevated in the second quarter of 2026, with management expecting elevated trends through 2026 and 2027, while its MCR deteriorated 130 basis points year over year. Its ability to combine predictive analytics, clinical programs and pharmacy capabilities could give additional tools to manage costs while improving access to care.
How Are Competitors Faring?
Some of CI’s major competitors in the healthcare service provider space are UnitedHealth Group Incorporated UNH and Humana Inc. HUM.
UnitedHealth is expanding AI across UnitedHealthcare and Optum to simplify care, anticipate health risks and reduce administrative work. UNH plans nearly $1.5 billion in AI-related investment in 2026, with applications spanning care navigation, disease prediction and clinical documentation.
Humana is applying AI to streamline member support and healthcare administration. HUM’s Agent Assist solution uses Google Cloud AI to help member advocates provide faster, more personalized responses, while broader efforts to simplify prior authorization are aimed at reducing administrative friction and improving care access.
Cigna’s Price Performance, Valuation & Estimates
Shares of CI have risen 4.3% over the past six months compared with the industry’s growth of 36.4%.
From a valuation standpoint, Cigna trades at a forward price-to-earnings ratio of 8.47, below the industry average of 15.27. CI carries a Value Score of A.
The Zacks Consensus Estimate for Cigna’s 2026 earnings is pegged at $30.51 per share, implying 2.3% growth from the year-ago period.
CI stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).