UnitedHealth Group Incorporated operates as a diversified health care company in the United States. The company operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. The UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, and individuals; health care coverage, and health and well-being services to individuals age 50 and older addressing their needs; Medicaid plans, children's health insurance and health care programs; and health and dental benefits, and hospital and clinical services, as well as health care benefits products and services to state programs caring for the economically disadvantaged, medically underserved, and those without the benefit of employer-funded health care coverage. The Optum Health segment provides care delivery, care management, wellness and consumer engagement, and health financial services patients, consumers, care delivery systems, providers, employers, payers, and public-sector entities. The Optum Insight segment offers software and information products, advisory consulting arrangements, and managed services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies, and other organizations. The Optum Rx segment provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and community health pharmacy services, infusion, and purchasing and clinical capabilities, as well as develops programs in the areas of step therapy, formulary management, drug adherence, and disease/drug therapy management. UnitedHealth Group Incorporated was founded in 1974 and is based in Minnetonka, Minnesota.

Анализ фундаментальных показателей UnitedHealth Group показывает смешанную картину. С одной стороны, P/E и P/S находятся ниже медианных значений по отрасли, что может указывать на недооцененность компании. Тем не менее, долговая нагрузка, измеряемая через debt-to-equity ratio, значительно выше медианы, что создает риски для финансовой устойчивости. Тем не менее, EPS и доходы компании значительно превышают медианные значения, что указывает на сильные финансовые результаты. В то же время, снижение текущего коэффициента и отсутствие дивидендов также сказываются на восприятии стабильности компании. Операционные и чистые маржи находятся ниже медианных значений, что говорит о недостаточной эффективности. В целом, хотя некоторые метрики показывают позитивные моменты, высокие уровни долга и низкие маржи негативно влияют на оценку компании, что может требовать корректировки целевой цены в сторону снижения.

UnitedHealth Group Incorporated

For Immediate Release
Chicago, IL – March 12, 2026 – Today, Zacks Equity Research discusses Universal Health Services, Inc. UHS. Despite these hurdles, HMO companies like UnitedHealth Group Inc. UNH, The Cigna Group CI, Humana Inc. HUM and Centene Corp. CNC
Industry: HMO
Link: https://www.zacks.com/commentary/2882336/4-hmo-stocks-to-watch-despite-escalating-costs-nursing-shortage
The U.S. health insurance industry, referred to as Health Maintenance Organization (HMO), is leveraging technological innovation and pursuing mergers and acquisitions (M&A) to expand capabilities, enter new markets and broaden its member base. With the Federal Reserve implementing three interest rate cuts in 2025 and borrowing costs expected to remain relatively lower, insurers may find it easier to finance acquisitions, potentially supporting further industry consolidation. However, regulatory changes could tighten Medicaid eligibility and reduce ACA enrollment, affecting membership and reimbursements.
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. Such rising costs are also weighing on companies across other industries of the broader Zacks Medical sector, such as Universal Health Services, Inc.. Despite these hurdles, HMO companies like UnitedHealth Group Inc., The Cigna Group, 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
Escalating Medical Expenses: Healthcare costs for U.S. health insurers are increasing due to several factors. The resumption of previously delayed medical procedures, along with greater demand for routine screenings and chronic disease management, has led to increased healthcare utilization and a rise in insurance claims. The growing use of expensive prescription drugs has also contributed to higher spending.
In addition, demographic shifts, such as a rapidly aging population, are increasing demand for healthcare services. The rising prevalence of chronic diseases such as diabetes, obesity and cardiovascular conditions further adds to long-term treatment costs. As a result, the Health Benefit Ratio (a key measure of insurer profitability) has come under strain, leading to tighter profit margins.
Regulatory Hurdles: Health insurers in the domestic market are navigating a period of heightened regulatory uncertainty. The One Big Beautiful Bill Act aims to make significant changes to healthcare programs such as Medicaid, Medicare, and Affordable Care Act (ACA) marketplaces. The changes incorporate new Medicaid work requirements, stricter eligibility checks and reduced federal funding for some safety-net programs.
The tighter eligibility and lack of subsidy extensions mean a drop in enrollment for insurers. Health insurers are under pressure, as lower Medicaid and Medicare reimbursements could strain already narrow margins. Because commercial insurance products generally generate higher margins than Medicaid or ACA plans, insurers are increasingly focusing on expanding their commercial offerings. Nevertheless, the expected Medicare Advantage rate increases in 2026 could offer some relief.
Scarcity of Healthcare Professionals: The ongoing nationwide shortage of nurses and other healthcare professionals continues to strain hospital operations, especially as patient volumes rise. An aging nursing workforce, increasing levels of burnout and an uneven distribution of healthcare staff across regions have collectively contributed to the shortage. HMOs work closely with hospitals, physicians and other healthcare providers to ensure their members receive efficient and cost-effective care.
The consistency and quality of these services are crucial for maintaining customer satisfaction and encouraging the renewal of health plans. However, a declining nursing workforce may hinder hospitals’ ability to provide high-quality care, which can ultimately affect customer retention for HMO providers.
Strategic Emphasis on M&A: Alongside adopting technological innovations, HMOs often pursue mergers and acquisitions (M&A) to broaden their capabilities, enter new markets, strengthen their position in existing regions, expand their member base and enhance their nationwide presence. These strategic initiatives also support diversification, helping companies sustain a competitive advantage over peers.
With the Federal Reserve implementing three interest rate cuts in 2025, chances remain of further rate hikes in 2026. This means that borrowing costs are expected to decline, which, in turn, is likely to fuel M&A activity as industry participants can access financing at lower costs.
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 #224, which places it in the bottom 8% of 243 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 35.6% in the past year against the Zacks S&P 500 composite’s 24.4% growth. The Zacks Medical sector inched up 1.6% 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 13.71X compared with the S&P 500’s 22.01X and the sector’s 20.66X.
In the past five years, the industry has traded as high as 19.57X and as low as 11.58X, the median being 16.19X.
4 Stocks to Watch
We present four 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 revenue growth is supported by the strong performance of its UnitedHealthcare and Optum segments. The UnitedHealthcare division continues to benefit from enhanced Medicare and Medicaid offerings that combine affordability with appealing benefits, helping to expand its membership base and increase premium revenues. Optum’s expansion is driven by strategic acquisitions, the use of advanced technology and data-driven healthcare models.
The Zacks Consensus Estimate for UnitedHealth Group’s 2026 earnings is pegged at $17.70 per share, which implies 8.3% 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 2.38%.
Cigna: Based in Connecticut, the company continues to thrive on the solid performance of its two growth platforms—Evernorth and Cigna Healthcare. Evernorth is strengthened by its extensive range of specialty pharmacy solutions, while Cigna Healthcare benefits from a wide customer base across its U.S. Government and U.S. Commercial divisions. The health insurer broadens its product portfolio and accelerates growth through strategic acquisitions and collaborations.
The Zacks Consensus Estimate for Cigna’s 2026 earnings is pegged at $30.29 per share, indicating 1.5% growth from the prior-year figure. CI’s earnings surpassed estimates in each of the last four quarters, the average surprise being 2.67%.
Humana:Headquartered in Kentucky, Humana has achieved consistent growth, supported by higher premium revenues and a strong membership base across its Medicare and Medicaid businesses. The solid performance of these plans has enabled the company to secure several new contracts and renew existing agreements with federal and state agencies. Through its CenterWell brand, Humana remains focused on addressing the healthcare needs of the country’s aging population. In addition, the company has undertaken strategic acquisitions, including Family Physicians Group, iCare and Inclusa.
The Zacks Consensus Estimate for Humana’s 2026 earnings is pegged at $9.82 per share. The consensus mark for 2026 revenues implies 22.8% growth from the 2025 figure. HUM’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average being 6.96%.
Centene: Missouri-based 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 inclination 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 and enters into strategic acquisitions and partnerships with healthcare providers to broaden its capabilities, diversify its service portfolio and reinforce its presence across the country.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $3.01 per share, which indicates a 44.7% rise from the year-ago figure. CNC’s earnings outpaced estimates in three of the last four quarters and missed the mark once, the average being 60.56%.
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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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Zacks Industry Outlook Highlights UnitedHealth, The Cigna, Humana and Centene

UnitedHealth Group (UNH) closed the most recent trading day at $285.25, moving +1.03% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.08%. Meanwhile, the Dow experienced a drop of 0.61%, and the technology-dominated Nasdaq saw an increase of 0.08%.
Coming into today, shares of the largest U.S. health insurer had gained 3.34% in the past month. In that same time, the Medical sector lost 2.21%, while the S&P 500 lost 2.16%.
Investors will be eagerly watching for the performance of UnitedHealth Group in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $6.76, marking a 6.11% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $110.26 billion, showing a 0.62% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $17.7 per share and revenue of $440.44 billion, indicating changes of +8.26% and -1.59%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for UnitedHealth Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. As of now, UnitedHealth Group holds a Zacks Rank of #3 (Hold).
With respect to valuation, UnitedHealth Group is currently being traded at a Forward P/E ratio of 15.95. This denotes a premium relative to the industry average Forward P/E of 15.02.
It is also worth noting that UNH currently has a PEG ratio of 1.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - HMOs industry had an average PEG ratio of 0.93 as trading concluded yesterday.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UnitedHealth Group (UNH) Advances While Market Declines: Some Information for Investors

The U.S. health insurance industry, referred to as Health Maintenance Organization (HMO), is leveraging technological innovation and pursuing mergers and acquisitions (M&A) to expand capabilities, enter new markets and broaden its member base. With the Federal Reserve implementing three interest rate cuts in 2025 and borrowing costs expected to remain relatively lower, insurers may find it easier to finance acquisitions, potentially supporting further industry consolidation. However, regulatory changes could tighten Medicaid eligibility and reduce ACA enrollment, affecting membership and reimbursements.
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. Such rising costs are also weighing on companies across other industries of the broader Zacks Medical sector, such as Universal Health Services, Inc. UHS. Despite these hurdles, HMO companies like UnitedHealth Group Incorporated UNH, The Cigna Group CI, 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
Escalating Medical Expenses: Healthcare costs for U.S. health insurers are increasing due to several factors. The resumption of previously delayed medical procedures, along with greater demand for routine screenings and chronic disease management, has led to increased healthcare utilization and a rise in insurance claims. The growing use of expensive prescription drugs has also contributed to higher spending. In addition, demographic shifts, such as a rapidly aging population, are increasing demand for healthcare services. The rising prevalence of chronic diseases such as diabetes, obesity and cardiovascular conditions further adds to long-term treatment costs. As a result, the Health Benefit Ratio (a key measure of insurer profitability) has come under strain, leading to tighter profit margins.
Regulatory Hurdles: Health insurers in the domestic market are navigating a period of heightened regulatory uncertainty. The One Big Beautiful Bill Act aims to make significant changes to healthcare programs such as Medicaid, Medicare, and Affordable Care Act (ACA) marketplaces. The changes incorporate new Medicaid work requirements, stricter eligibility checks and reduced federal funding for some safety-net programs. The tighter eligibility and lack of subsidy extensions mean a drop in enrollment for insurers. Health insurers are under pressure, as lower Medicaid and Medicare reimbursements could strain already narrow margins. Because commercial insurance products generally generate higher margins than Medicaid or ACA plans, insurers are increasingly focusing on expanding their commercial offerings. Nevertheless, the expected Medicare Advantage rate increases in 2026 could offer some relief.
Scarcity of Healthcare Professionals: The ongoing nationwide shortage of nurses and other healthcare professionals continues to strain hospital operations, especially as patient volumes rise. An aging nursing workforce, increasing levels of burnout and an uneven distribution of healthcare staff across regions have collectively contributed to the shortage. HMOs work closely with hospitals, physicians and other healthcare providers to ensure their members receive efficient and cost-effective care. The consistency and quality of these services are crucial for maintaining customer satisfaction and encouraging the renewal of health plans. However, a declining nursing workforce may hinder hospitals’ ability to provide high-quality care, which can ultimately affect customer retention for HMO providers.
Strategic Emphasis on M&A: Alongside adopting technological innovations, HMOs often pursue mergers and acquisitions (M&A) to broaden their capabilities, enter new markets, strengthen their position in existing regions, expand their member base and enhance their nationwide presence. These strategic initiatives also support diversification, helping companies sustain a competitive advantage over peers. With the Federal Reserve implementing three interest rate cuts in 2025, chances remain of further rate hikes in 2026. This means that borrowing costs are expected to decline, which, in turn, is likely to fuel M&A activity as industry participants can access financing at lower costs.
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 #224, which places it in the bottom 8% of 243 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 35.6% in the past year against the Zacks S&P 500 composite’s 24.4% growth. The Zacks Medical sector inched up 1.6% 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 13.71X compared with the S&P 500’s 22.01X and the sector’s 20.66X.
In the past five years, the industry has traded as high as 19.57X and as low as 11.58X, the median being 16.19X, as the chart below shows.
Forward 12-Month Price/Earnings (P/E) Ratio
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
4 Stocks to Watch
We present four 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 revenue growth is supported by the strong performance of its UnitedHealthcare and Optum segments. The UnitedHealthcare division continues to benefit from enhanced Medicare and Medicaid offerings that combine affordability with appealing benefits, helping to expand its membership base and increase premium revenues. Optum’s expansion is driven by strategic acquisitions, the use of advanced technology and data-driven healthcare models.
The Zacks Consensus Estimate for UnitedHealth Group’s 2026 earnings is pegged at $17.70 per share, which implies 8.3% 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 2.38%.
Price & Consensus: UNH
Image Source: Zacks Investment Research
Cigna: Based in Connecticut, the company continues to thrive on the solid performance of its two growth platforms—Evernorth and Cigna Healthcare. Evernorth is strengthened by its extensive range of specialty pharmacy solutions, while Cigna Healthcare benefits from a wide customer base across its U.S. Government and U.S. Commercial divisions. The health insurer broadens its product portfolio and accelerates growth through strategic acquisitions and collaborations.
The Zacks Consensus Estimate for Cigna’s 2026 earnings is pegged at $30.29 per share, indicating 1.5% growth from the prior-year figure. CI’s earnings surpassed estimates in each of the last four quarters, the average surprise being 2.67%.
Price & Consensus: CI
Image Source: Zacks Investment Research
Humana: Headquartered in Kentucky, Humana has achieved consistent growth, supported by higher premium revenues and a strong membership base across its Medicare and Medicaid businesses. The solid performance of these plans has enabled the company to secure several new contracts and renew existing agreements with federal and state agencies. Through its CenterWell brand, Humana remains focused on addressing the healthcare needs of the country’s aging population. In addition, the company has undertaken strategic acquisitions, including Family Physicians Group, iCare and Inclusa.
The Zacks Consensus Estimate for Humana’s 2026 earnings is pegged at $9.82 per share. The consensus mark for 2026 revenues implies 22.8% growth from the 2025 figure. HUM’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average being 6.96%.
Price & Consensus: HUM
Image Source: Zacks Investment Research
Centene: Missouri-based 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 inclination 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 and enters into strategic acquisitions and partnerships with healthcare providers to broaden its capabilities, diversify its service portfolio and reinforce its presence across the country.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $3.01 per share, which indicates a 44.7% rise from the year-ago figure. CNC’s earnings outpaced estimates in three of the last four quarters and missed the mark once, the average being 60.56%.
Price & Consensus: CNC
Image Source: Zacks Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

4 HMO Stocks to Watch Despite Escalating Costs, Nursing Shortage

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Centene Corp (Symbol: CNC), where a total volume of 32,950 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 67.4% of CNC's average daily trading volume over the past month, of 4.9 million shares. Especially high volume was seen for the $30 strike put option expiring April 10, 2026, with 19,999 contracts trading so far today, representing approximately 2.0 million underlying shares of CNC. Below is a chart showing CNC's trailing twelve month trading history, with the $30 strike highlighted in orange:
Bio-Techne Corp (Symbol: TECH) options are showing a volume of 15,116 contracts thus far today. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 62.4% of TECH's average daily trading volume over the past month, of 2.4 million shares. Especially high volume was seen for the $60 strike call option expiring April 17, 2026, with 5,055 contracts trading so far today, representing approximately 505,500 underlying shares of TECH. Below is a chart showing TECH's trailing twelve month trading history, with the $60 strike highlighted in orange:
And UnitedHealth Group Inc (Symbol: UNH) saw options trading volume of 39,170 contracts, representing approximately 3.9 million underlying shares or approximately 47.5% of UNH's average daily trading volume over the past month, of 8.3 million shares. Especially high volume was seen for the $300 strike call option expiring April 17, 2026, with 2,172 contracts trading so far today, representing approximately 217,200 underlying shares of UNH. Below is a chart showing UNH's trailing twelve month trading history, with the $300 strike highlighted in orange:
For the various different available expirations for CNC options, TECH options, or UNH options, visit StockOptionsChannel.com.
Also see:
ETFs Holding TSEM
Top Ten Hedge Funds Holding ECNS
Institutional Holders of WLY
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Tuesday Option Activity: CNC, TECH, UNH

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $478.2 million dollar outflow -- that's a 1.2% decrease week over week (from 267,015,324 to 263,915,324). Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is down about 1.5%, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 2.1%, and Pfizer Inc (Symbol: PFE) is lower by about 0.2%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $127.35 per share, with $160.59 as the 52 week high point — that compares with a last trade of $153.55. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
Institutional Holders of RSPD
Institutional Holders of WT
ISCF Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

XLV, UNH, TMO, PFE: Large Outflows Detected at ETF

UnitedHealth Group Incorporated UNH is accelerating the integration of artificial intelligence (AI) throughout its healthcare network, and its pharmacy benefits division is making significant strides. The company has rolled out new AI features in Optum Rx aimed at better identifying fraud, waste and abuse (FWA) in pharmacy claims. This initiative is part of UNH’s larger plan to leverage data analytics to manage healthcare costs while enhancing the efficiency of its service platforms.
The AI-powered system analyzes massive volumes of prescription and billing data to identify unusual patterns that could indicate fraudulent or improper claims. It can highlight issues like duplicate prescriptions, odd refill frequencies or discrepancies in billing information. By automating large parts of the review process, Optum Rx allows its compliance teams to focus on the most relevant cases rather than manually screening thousands of routine transactions.
Technology also plays a crucial role in enhancing patient safety. The AI models can detect potential medication risks, including overlapping drug therapies or unusual dosing patterns before prescriptions are finalized. This provides pharmacists and auditors an opportunity to intervene early, reducing the likelihood of medication errors while strengthening regulatory compliance across pharmacy networks.
This initiative reflects how UNH is leveraging technology to boost operational efficiency across its healthcare services platform. With increasing scrutiny on pharmacy benefit managers, AI-powered monitoring tools could enable Optum Rx to improve transparency, minimize cost leakage and foster sustainable growth for the UnitedHealth ecosystem.
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 is also expanding its use of advanced analytics and AI to strengthen claims monitoring and care management. ELV is investing in data platforms within its Carelon unit to identify billing irregularities, optimize pharmacy utilization and improve overall cost transparency.
Humana has been integrating AI and predictive analytics across its pharmacy and care delivery platforms. Through its pharmacy services and insurance operations, HUM uses data-driven tools to detect abnormal claim patterns and improve oversight of prescription utilization and billing practices.
UnitedHealth’s Price Performance, Valuation & Estimates
Shares of UNH have declined 40.4% in the past year compared with the industry’s fall of 35.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 15.84, above the industry average of 13.81. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $17.70 per share, implying 8.3% growth from the year-ago period.
Image Source: Zacks Investment Research
UNH 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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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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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.

UNH Deploys AI in Optum Rx to Tackle Pharmacy Fraud and Cost Leakage

UnitedHealth Group Incorporated UNH continues to go through a turbulent phase while navigating rising medical costs, regulatory scrutiny and shifting industry dynamics. For investors accustomed to UnitedHealth’s consistent growth trajectory, the continued weakness has raised an important question: Are there deeper structural concerns, or is it simply a temporary setback for one of healthcare’s largest platforms?
The latest labor market data has added another layer of uncertainty. Healthcare employment unexpectedly declined in February, highlighting stress points within a sector that has historically been a reliable source of job creation. While the data does not directly determine insurer performance, it underscores the evolving landscape in which UnitedHealth operates. At the same time, the company’s stock has softened in recent months, reflecting a mix of macroeconomic volatility and company-specific pressures.
Healthcare Hiring Slowdown Adds to Sector Concerns
The U.S. healthcare industry rarely experiences employment contractions, making February’s decline notable. According to the U.S. Bureau of Labor Statistics, the broader economy shed more than 92,000 jobs during the month, including roughly 28,000 positions in healthcare. A strike involving workers at Kaiser Permanente played a major role in the decline. Even so, the data signals mounting pressure across healthcare systems, many of which are grappling with reimbursement challenges and evolving care models.
The national unemployment rate ticked up to 4.4% compared with 4.3% recorded in January. For health insurers, these dynamics can ultimately influence claims patterns, provider pricing and overall cost structures.
Market Rotation and Stock Weakness
UnitedHealth’s recent share decline has unfolded against a backdrop of shifting market leadership. Over the past three months, the stock has dropped 12.8%, underperforming the broader industry’s 10.1% decline. Some competitors have fared differently. Shares of Molina Healthcare, Inc. MOH have slipped roughly 10% over the same period, while Centene Corporation CNC has climbed nearly 13%. Meanwhile, the S&P 500 has declined about 2.5%.
Price Performance – UNH, MOH, CNC, Industry & S&P 500
Image Source: Zacks Investment Research
Part of UnitedHealth’s weakness reflects a broader investor rotation toward high-growth technology companies tied to artificial intelligence. As capital flows toward these themes, traditionally defensive sectors like healthcare have temporarily taken a back seat.
Geopolitical developments have also added to market volatility. Rising tensions involving Iran have contributed to higher energy prices and renewed inflation concerns, prompting investors to rebalance portfolios toward sectors expected to have stronger near-term momentum.
Operational Headwinds Come Into Focus
Beyond macro forces, UnitedHealth is confronting several internal challenges. One key metric illustrating the pressure is the company’s adjusted medical care ratio (MCR), which rose to 88.9% in 2025, representing a deterioration of 340 basis points from the previous year. The increase reflects higher utilization of healthcare services, particularly among seniors enrolled in government-supported programs.
Legal and regulatory scrutiny has also intensified. The U.S. Department of Justice is examining aspects of the company’s Medicare billing practices and the competitive conduct of Optum Rx, its pharmacy benefit management division. Such investigations increase headline risk and may result in additional compliance costs or operational changes.
The aftermath of the 2024 cyberattack involving Change Healthcare remains another source of uncertainty. Questions surrounding financial assistance to healthcare providers affected by the incident continue to draw regulatory attention.
Operational trends also reveal some softness in membership. The company expects total medical enrollment to range between 46.945 million and 47.495 million in 2026, down from 49.760 million in 2025. Declines are expected across several segments, including commercial risk plans, Medicare Advantage and Medicaid programs.
Adding to the pressure, federal regulators proposed only a modest 0.09% increase in Medicare Advantage payment rates for 2027. Given that Medicare Advantage represents a substantial share of UnitedHealthcare’s revenue base, reimbursement decisions are expected to affect profitability.
Structural Strengths Remain Intact
Despite these challenges, the company’s long-term strategic position remains intact. UnitedHealth operates one of the most comprehensive healthcare ecosystems in the industry, combining insurance operations with a broad healthcare services platform through Optum.
This integrated model enables the company to operate across multiple parts of the healthcare value chain, including insurance coverage, pharmacy benefit management, data analytics and direct care delivery. By coordinating services across these areas, UNH is expected to manage costs more effectively.
Capital distribution also remains disciplined. In 2025, the company returned nearly $7.9 billion to its shareholders through dividends and repurchased approximately $5.5 billion of stock. Management plans $2.5 billion in buybacks and about $8 billion in dividend payments for 2026 while maintaining balance-sheet flexibility.
Long-term demographic trends further reinforce UNH’s outlook. An aging population and rising prevalence of chronic diseases are expected to drive sustained demand for healthcare services and insurance coverage, particularly within government-supported programs serving senior citizens.
Where Do the Estimates Stand?
The Zacks Consensus Estimate for 2026 EPS is pegged at $17.70, indicating an 8.3% year-over-year improvement. The consensus estimate for revenues is pegged at $440.4 billion, implying a 1.6% decline from a year ago.
For 2027, EPS is projected to grow to $19.83, marking a 12.1% improvement. It has witnessed one upward estimate revision in the past month, against no downward movements. Revenues are pegged at $457.5 billion, 3.9% growth from a year ago.
Over the past four quarters, the company has missed estimates twice and beat twice, producing an average earnings surprise of negative 2.4%.
UnitedHealth Group Incorporated Price, Consensus and EPS Surprise
UNH’s Valuation
The continued selloff has pushed valuation below the historical average. The stock now trades at a forward price-to-earnings (P/E) ratio of 15.84X, below its five-year median of 19.29X. However, it is still above the industry average of 13.81X. In comparison, Molina and Centene are currently trading at 18.88X and 13.66X, respectively.
Image Source: Zacks Investment Research
Conclusion
UnitedHealth’s recent decline reflects a convergence of sector pressures, regulatory scrutiny and shifting market sentiment. Rising medical utilization, reimbursement uncertainty and membership softness are real challenges that could weigh on near-term performance. The recent decline in healthcare employment, although significantly influenced by temporary disruptions, adds another signal that the sector is entering a more complex operating phase.
At the same time, the company’s diversified healthcare platform, strong capital allocation and exposure to long-term demographic tailwinds continue to support its strategic positioning. The pullback in valuation suggests that some of the risks are already reflected in the share price. While the long-term outlook remains intact, near-term uncertainty argues for a more cautious stance. As a result, the stock presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Healthcare Jobs Drop, UnitedHealth Stock Slips: Opportunity or Risk?

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Anterix Inc (Symbol: ATEX), where a total of 3,029 contracts have traded so far, representing approximately 302,900 underlying shares. That amounts to about 56.2% of ATEX's average daily trading volume over the past month of 539,020 shares. Particularly high volume was seen for the $45 strike call option expiring March 20, 2026, with 2,898 contracts trading so far today, representing approximately 289,800 underlying shares of ATEX. Below is a chart showing ATEX's trailing twelve month trading history, with the $45 strike highlighted in orange:
UnitedHealth Group Inc (Symbol: UNH) options are showing a volume of 49,795 contracts thus far today. That number of contracts represents approximately 5.0 million underlying shares, working out to a sizeable 53.4% of UNH's average daily trading volume over the past month, of 9.3 million shares. Particularly high volume was seen for the $300 strike call option expiring March 06, 2026, with 6,540 contracts trading so far today, representing approximately 654,000 underlying shares of UNH. Below is a chart showing UNH's trailing twelve month trading history, with the $300 strike highlighted in orange:
And Cheniere Energy Inc. (Symbol: LNG) options are showing a volume of 9,939 contracts thus far today. That number of contracts represents approximately 993,900 underlying shares, working out to a sizeable 53.4% of LNG's average daily trading volume over the past month, of 1.9 million shares. Especially high volume was seen for the $240 strike put option expiring March 20, 2026, with 2,087 contracts trading so far today, representing approximately 208,700 underlying shares of LNG. Below is a chart showing LNG's trailing twelve month trading history, with the $240 strike highlighted in orange:
For the various different available expirations for ATEX options, UNH options, or LNG options, visit StockOptionsChannel.com.
Also see:
Technology Dividend Stock List
Institutional Holders of PNY
BAS Split History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Monday Option Activity: ATEX, UNH, LNG

Key Points
The medical care ratio is a key metric for UnitedHealth Group's business as it measures how efficient its operations are.
The ratio has been rising, and it came in at over 89% last year.
For years, UnitedHealth Group (NYSE: UNH) stock has been a terrific growth investment. In fact, it looked unstoppable. Not only did it repeatedly grow its dividend, but the stock was amassing some outstanding results along the way. It was looking like the ultimate healthcare stock to own for the long term.
But things have changed drastically for UnitedHealth Group within just the past 12 months. Concerns about rising costs and investigations into its billing practices have significantly weighed on its valuation. During that time frame, the stock has fallen by 37%. It finished last week at a price of around $293, which is down significantly from its 52-week high of more than $606.
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This year, it's already down more than 10%. And whether the health insurance giant is able to turn things around could hinge on one very important metric.
UnitedHealth's medical care ratio is a crucial metric for the stock
The key metric that investors and analysts often focus on for UnitedHealth Group is its medical care ratio. This represents how much of the premiums the company collects are spent on medical care for its members. The higher the ratio is, the worse the prospects for profitability are.
For UnitedHealth, the ratio has been rising in recent years. In 2025, the medical care ratio for the full year was 89.1%, up from 85.5% in the previous year, which was already higher than the 83.2% it averaged in 2023. Without a significant decline and improvement in that rate, investors may be concerned about the ability of UnitedHealth to grow its profits. The company blames the increase on a number of factors, including Medicare funding reductions and "accelerating medical cost trends." Its ability to keep costs down will be crucial for the business to show investors it's moving in the right direction.
A turnaround for the stock could take time
UnitedHealth stock is a much riskier-looking stock than it has been in the past. It's no longer trading at a multi-year low, but by no means is it taking off and looking like it'll recover anytime soon from its massive sell-off. There are some big clouds hovering over the stock these days, including how ongoing investigations into its billing practices might impact its future growth, and if it can find enough efficiencies and opportunities to bring down its costs and improve margins.
At 3%, the stock does offer an above-average yield, but investors may not have much confidence in the dividend if the underlying business isn't doing all that well. If you are comfortable with some risk, then UnitedHealth Group could be worth taking a chance on for the long term, but only if you're prepared to hang on for several years. However, with an uncertain future ahead, you may be better off simply taking a wait-and-see approach with the healthcare stock for now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UnitedHealth's Stock Might Not Rally Until This Number Improves

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $248.3 million dollar inflow -- that's a 0.6% increase week over week in outstanding units (from 265,465,324 to 267,015,324). Among the largest underlying components of XLV, in trading today UnitedHealth Group Inc (Symbol: UNH) is down about 0.5%, Thermo Fisher Scientific Inc (Symbol: TMO) is off about 2.7%, and Pfizer Inc (Symbol: PFE) is lower by about 1.3%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $127.35 per share, with $160.59 as the 52 week high point — that compares with a last trade of $158.55. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
High-Yield REITs
EWA Options Chain
ETFs Holding AREX
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	22.23 22.15
Price/Sales	0.74 3.03
P/B	2.62 2.28
P/FCF	18.39 19.25

Indicator	TTM Median
ROE	17.54 24.30
ROA	5.71 6.50
ROI	6.96 9.86
Net Worth	319.29 0.21
Quick Ratio	0.00 1.73
Current Ratio	0.82 2.83

Indicator	TTM Median
Net Profit Margin	2.69 11.09
Operating Margin	6.06 14.34
Gross Margin	39.69 69.15
Return on tangible equity	0.00 53.53

Indicator	TTM Median
EPS	2.11 0.37
EPS Forecast	2.09 0.37
Revenue	113.16B 17.00M
Gross Profit	20.64B —
EBITDA	5.41B —

UnitedHealth Group Incorporated

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

Valuation

Debts

Efficiency

Other ratios

Revenue