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

Key Points
The health insurance giant increased its revenue and earnings projections for 2026.
Its scale puts it in "too big to fail" territory, though that doesn't necessarily help the stock.
At UnitedHealth's current valuation, there's more upside than downside potential to the stock.
It's fair to say that 2025 was a year that UnitedHealth Group (NYSE: UNH) would probably like to forget. It was a true "when it rains, it pours" situation, ranging from suspending its forecast for the year to dealing with the Department of Justice to leadership shakeups.
UnitedHealth's stock finished 2025 down 33%, but this year has gotten off to a much better start for the healthcare giant. Its stock is up a modest 3.9% year to date through April 27, and its recent earnings results showed enough glimpses of hope to warrant a revisit from investors.
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UnitedHealth is making progress in three key areas
I wrote an article back in January that outlined three things I was paying attention to regarding UnitedHealth's business:
An estimated earnings per share (EPS) of $17.25 this year.
A lower medical care ratio (MCR).
Improved operating margins (profit from core operations).
There is still work to be done, but it's making noticeable progress.
In the first quarter, its EPS and adjusted EPS (which removes one-off events) were $6.90 and $7.23, respectively. The good performance caused UnitedHealth to raise its EPS guidance for the year to $17.35 and $18.25, respectively. Both of these are higher than the EPS I was looking for, which checks off the first box.
Medical care ratio
UnitedHealth's MCR is the percentage of money it collects from premiums that it pays out for medical claims (doctor visits, hospital stays, etc.). For example, if it collected $500 million in premiums and paid out $450 million in claims, its MCR would be 90%.
Last year, its MCR was routinely close to 90%, which isn't ideal. In Q1, its MCR was 83.9%, down from 84.8% Q1 in 2025. This decline might look minimal on paper, but in practice, it could mean billions saved. UnitedHealth says the declining MCR is due to pricing discipline, better cost management, and favorable conditions, but it could increase in the second half of the year.
Operating margins
In Q1, UnitedHealth's operating margins were 6.6%, up from 6.2% in Q1 2025. It managed to improve margins even though its operating earnings were down about 1% from last year ($9 billion versus $9.1 billion). This is a sign the company is beginning to operate more efficiently.
UnitedHealth has scale working in its favor
UnitedHealth is a fully integrated company, meaning it operates on both the care and insurance sides of the healthcare industry. It's the country's largest health insurer, physician employer, and Medicare Advantage provider -- even after serving 965 million fewer members than last year.
Although the term is usually reserved for banks, UnitedHealth has reached "too big to fail" status because of its deep integration into the U.S. healthcare and financial systems. Its subsidiary, Change Health, processes one in three U.S. patient records. UnitedHealthcare served 49.1 million people last quarter, and its pharmacy branch, Optum RX, fills well over a billion prescriptions annually (383 million last quarter).
At that scale, UnitedHealth is too important to the U.S. healthcare infrastructure. Its $111.7 billion in revenue in Q1 is more than the GDP of 141 countries.
Much more upside than downside
Being "too big to fail" alone doesn't make UnitedHealth a good investment (it has been that way for a while, yet its stock is down over the past five years). However, after resetting from a tough 2025, and now showing glimpses of recovery, its stock has much more upside than downside.
You're getting a blue-chip stock that's currently trading at only 19 times its projected earnings over the next 12 months. In the early part of last year, it was trading in the 30s. One can't predict how a stock will perform going forward, but the 2.5% dividend yield should help buy UnitedHealth some more patience from investors.
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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.

Opinion: It's Time to Load Up on UnitedHealth Group Stock

Humana Inc. HUM reported first-quarter 2026 adjusted earnings of $10.31 per share, which beat the Zacks Consensus Estimate by 3.5%. However, the bottom line fell 11% year over year.
Revenues improved 23.5% year over year to $39.6 billion. The top line surpassed the consensus mark by 0.5%.
The quarterly results benefited on the back of premium gains and a robust performance from the CenterWell segment, which saw a revenue jump supported by its primary care business. A rise in overall medical membership also contributed to the upside. However, the upside was partly offset by escalating operating expenses and a deteriorating benefit ratio.
Humana Inc. Price, Consensus and EPS Surprise
HUM’s Q1 Operational Update
Humana’s premiums totaled $37.7 billion, which advanced 23.6% year over year, and surpassed the Zacks Consensus Estimate of $37.3 billion and our estimate of $36.6 billion. Services revenues rose 25.7% year over year to $1.7 billion, beating the consensus mark of $1.6 billion. Investment income of $262 million fell 0.8% year over year in the quarter under review. However, the metric beat the consensus mark of $230 million and our estimate of $235.7 million.
The benefit ratio came in at 89.4%, which deteriorated 240 basis points (bps) year over year. Total operating expenses increased 25.9% year over year to $37.9 billion, higher than our estimate of $36.6 billion. The year-over-year increase was due to higher benefits and operating costs. The adjusted operating cost ratio of 10% improved 50 bps year over year.
HUM’s net income declined 4.7% year over year to $1.2 billion but beat our estimate of $1.1 billion.
Q1 Segmental Update of HUM
Insurance
The segment’s revenues rose 23% year over year to $38.1 billion in the first quarter on the back of improved per-member premiums derived from HUM’s Medicare and stand-alone PDP businesses, supported by improved Medicare Advantage benchmark funding from the Centers for Medicare and Medicaid Services and a higher Part D direct subsidy tied to the IRA.
Adjusted operating income dropped 8.8% year over year to $1.4 billion. The benefit ratio deteriorated 200 bps year over year to 89.4%. The operating cost ratio of 7.3% improved 90 bps year over year.
Total medical membership of the segment was 17.7 million as of March 31, 2026, which rose 19.4% year over year. The metric beat the Zacks Consensus Estimate of 16.7 million and our estimate of 15.7 million.
CenterWell
The unit recorded revenues of $6.1 billion in the quarter under review, which improved 19.7% year over year and surpassed the Zacks Consensus Estimate of $5.8 billion. The metric benefited from higher revenues stemming from the company’s primary care business.
Adjusted operating income dropped 25.1% year over year to $338 million. The operating cost ratio of 94.5% deteriorated 340 bps year over year due to the ongoing implementation of the v28 risk model update within the company’s primary care business and higher volumes in CenterWell Specialty Pharmacy.
Humana’s Financial Update (As of March 31, 2026)
Humana exited the first quarter with cash and cash equivalents of $5 billion, which rose 17.9% from the 2025-end level. Total assets of $55.3 billion increased 13% from the figure at 2025-end.
Long-term debt amounted to $12.3 billion, down 0.8% from the figure as of Dec. 31, 2025. Debt to capitalization deteriorated 190 bps year over year to 43% at the first-quarter end.
Total stockholders’ equity of $18.6 billion advanced 5.2% from the 2025-end figure.
HUM generated net cash from operations of $1.3 billion in the first quarter of 2026, which increased nearly fourfold year over year.
HUM’s Capital Deployment Update
Humana bought back shares worth $107 million in the first quarter of 2026. It also paid dividends of $107 million during the same quarter.
2026 View by HUM
Revenues are still projected to be a minimum of $160 billion, which implies a 23.4% increase from the 2025 reported figure. The Insurance segment’s revenues are expected to continue to be forecasted at a minimum of $155 billion. Revenues of the CenterWell segment are still expected to be at a minimum of $25 billion.
Adjusted EPS is still projected to be at least $9.00, which indicates a 47.5% decline from the 2025 figure. GAAP EPS is now projected to be at least $8.36, down from the previously expected guidance of at least $8.89.
Management still anticipates Individual Medicare Advantage membership to witness growth of around 25% in 2026. Group Medicare Advantage membership is still expected to record an increase of roughly 150,000.
Membership from the Individual Medicare stand-alone PDP is still expected to increase around 1,000,000 this year. State-based contracts are still anticipated to witness membership growth within 25,000-100,000.
The GAAP benefit ratio for the Insurance segment is still likely to be 92.75%, with a variability margin of plus or minus 25 basis points. The GAAP consolidated adjusted operating cost ratio is still expected to be at 10%, with a variability margin of plus or minus 25 basis points.
GAAP cash flow from operations is still estimated within $2.5-$2.9 billion. Meanwhile, capital expenditures are still projected to be roughly $650 million. The adjusted effective tax rate is expected to be around 25.5%, while the weighted average share count is anticipated at around 121 million.
HUM’s Zacks Rank
HUM currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Peers Perform?
Several companies in the Medical space, including Molina Healthcare Inc. MOH, UnitedHealth Group Incorporated UNH and Elevance Health, Inc. ELV, have already reported their financial results for the March quarter of 2026. Here’s how they had performed:
Molina Healthcare reported first-quarter 2026 adjusted earnings per share of $2.35, which beat the Zacks Consensus Estimate of $1.57. The bottom line declined 61.3% from the year-ago period's level. Revenues amounted to $10.8 billion, which decreased 3.1% year over year. The top line of Molina Healthcare marginally missed the consensus mark by 0.2%. The first-quarter performance was supported by lower medical care costs, partially offset by declining premiums, membership and investment income.
UnitedHealth reported first-quarter 2026 EPS of $7.23, which beat the Zacks Consensus Estimate of $6.46. The bottom line rose 0.4% year over year. Revenues rose 2% year over year to $111.7 billion. The top line beat the consensus mark by 2.1%. The strong quarterly earnings were aided by growth in commercial fee-based membership and the strength witnessed in Optum Rx. However, weakness in UnitedHealth’s Optum Health and declining risk-based membership partially offset the positives.
Elevance Health reported first-quarter 2026 adjusted earnings per share of $12.58, which surpassed the Zacks Consensus Estimate by 17.8%. The bottom line rose 5.1% year over year. Operating revenues advanced 1.5% year over year to $49.5 billion. The top line beat the consensus mark by 3.7%. The strong quarterly results benefited on the back of strong growth in premiums. Segment-wise, the Carelon division posted a robust revenue surge, aided by scaling risk-based services, while Health Benefits saw increased premium yields. However, Elevance Health’s upside was partly offset by a decline in overall medical membership and an elevated expense level.
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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.

Humana Beats Q1 Earnings Estimates on Increasing Premiums

The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.12%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -0.13%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.01%. June E-mini S&P futures (ESM26) rose +0.14%, and June E-mini Nasdaq futures (NQM26) fell -0.02%.
Stock indexes settled mostly higher on Monday, with the S&P 500 and Nasdaq 100 posting new all-time highs. Optimism that demand for AI-infrastructure will remain strong and continue to power technology earnings boosted stocks on Monday. The megacap technology stocks of Alphabet, Apple, Amazon.com, Microsoft, and Meta Platforms all report quarterly earnings this week.
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The broader market saw some downward pressure from Monday’s +2% rally in WTI crude oil prices, which raised inflation expectations. Crude oil prices jumped after President Trump on Saturday canceled planned negotiations with Iran in Pakistan, saying Iran "offered a lot, but not enough" to continue negotiations. Iranian President Pezeshkian said Iran won't enter "imposed negotiations under threats or blockade." Secretary of State Rubio said Iran still wants to retain control of the Strait of Hormuz, and that was "unacceptable" to the US.
However, AI-infrastructure stocks found support on Monday after TF International Securities said that Qualcomm is working with OpenAI and Taiwan’s MediaTek to develop smartphone processors. Also, Micron Technology and SanDisk both received buy ratings from Melius Research. In addition, strength in health insurers was a positive factor for the market.
Stock indexes found support from the Axios report that Iran has given the US a new proposal to reopen the Strait of Hormuz and end the war, which includes postponing nuclear negotiations. The plan calls for extending the ceasefire so the parties can work toward a permanent end to the war, and nuclear talks would come later, only after a US blockade of the strait is lifted. The White House said Monday afternoon that President Trump is discussing the proposal with national security and foreign policy officials.
The US and Iran are locked in a battle for control of the Strait of Hormuz, with both sides blocking the waterway to gain leverage during an extended ceasefire. The US increased pressure on Iran with its naval blockade as it seeks to get Iran to agree to talks, while Israel and Lebanon are set to extend a ceasefire for three weeks.
WTI crude oil prices (CLM26) rose by more than +2% on Monday after President Trump canceled a planned weekend trip by US envoys to Pakistan and Iran said it won’t negotiate while the US naval blockade of Iran remains in force. The Strait of Hormuz remains essentially closed, threatening to deepen the global energy crisis. The ongoing blockade could exacerbate global oil and fuel shortages, as about a fifth of the world’s oil and liquefied natural gas transits through the strait. Goldman Sachs estimates that crude output in the Persian Gulf has been curtailed by about 14.5 million bpd, or more than 50%, so far in April, and that the current disruption has drawn down nearly 500 million bbl from global crude stockpiles, which could hit a billion bbl by June.
Kevin Warsh now appears to be on a glide path toward Senate approval as the new Fed Chair after Senator Thom Tillis said on Sunday that he dropped his opposition to the nomination. Mr. Tillis dropped his opposition after the US Justice Department dropped its criminal investigation into the Fed’s overspending on the renovation of its building, in line with Mr. Tillis’ demand. Mr. Tillis views the investigation into Fed Chair Powell as an attempt to force the Fed to cut interest rates. The Senate Banking Committee is due to vote on Mr. Warsh’s appointment this Wednesday and then send the nomination to the full Senate for a vote.
The markets are discounting a 0% chance for a +25 bp FOMC rate hike at the Tue-Wed policy meeting. The markets are expecting the FOMC to leave policy unchanged this week as it awaits further developments in oil prices and inflation.
Earnings season ramps up this week with several Magnificent Seven technology stocks reporting. Earnings results thus far have been supportive of stocks. As of Monday, 80% of the 139 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets settled mixed on Monday. The Euro Stoxx 50 closed down -0.39%. China's Shanghai Composite closed up +0.16%. Japan's Nikkei Stock 225 rallied to a new record high and closed up +1.38%.
Interest Rates
June 10-year T-notes (ZNM6) on Monday closed down -6 ticks. The 10-year T-note yield rose +3.6 bp to 4.337%. June T-notes retreated on Monday due to the +2% increase in the price of WTI crude oil, which boosts inflation expectations. The 10-year breakeven inflation rate rose to a 14-month high of 2.457% on Monday. Supply pressures also weighed on T-note prices, as the Treasury auctioned $69 billion of 2-year T-notes and $70 billion of 5-year T-notes.
Demand for Monday’s Treasury auctions was mixed. The 2-year T-note auction saw decent demand, with a bid-to-cover ratio of 2.65, above the 10-auction average of 2.60, while demand for the 5-year T-note auction was tepid, with a bid-to-cover ratio of 2.33, below the 10-auction average of 2.35.
European government bond yields moved higher on Monday. The 10-year German bund yield rose +3.9 bp to 3.033%. The 10-year UK gilt yield rose +6.0 bp to 4.972%.
The German May GfK consumer confidence index fell -5.2 to a 3.25-year low of -33.3, weaker than expectations of -30.0.
Swaps are discounting a 6% chance of a +25 bp ECB rate hike at its next policy meeting on Thursday.
US Stock Movers
Health insurance stocks rallied on Monday to provide support to the overall market. Centene (CNC) closed up more than +4%, and Elevance Health (ELV) and Humana (HUM) closed up more than +3%. Also, UnitedHealth Group (UNH) and the Cigna Group (CI) closed up more than +2%, and Cardinal Health (CAH) and Molina Healthcare (MOH) closed up more than +1%.
Airline stocks and cruise line operators fell on Monday after WTI crude oil rose more than +2%, which raises fuel costs and weighs on corporate profits. American Airlines Group (AAL) closed down more than -3%, and Alaska Air Group (ALK), Royal Caribbean Cruises Ltd (RCL), and Southwest Airlines (LUV) closed down more than -2%. Also, United Airlines Holdings (UAL), Carnival (CCL), and Norwegian Cruise Line Holdings Ltd (NCLH) closed down more than -1%, and Delta Air Lines (DAL) closed down -0.37%.
Chipmakers moved lower on Monday, weighing on the broader market. ARM Holdings Plc (ARM) closed down more than -8% to lead losers in the Nasdaq 100. Also, Advanced Micro Devices (AMD), Marvell Technology (MRVL), and Lam Research (LRCX) closed down more than -3%. In addition, Applied Materials (AMAT), Microchip Technology (MCHP), NXP Semiconductors NV (NXPI), KLA Corp (KLAC), and Texas Instruments (TXN) closed down more than -2%, and Analog Devices (ADI) and ASML Holding NV (ASML) closed down more than -1%.
Sandisk (SNDK) closed up more than +8% to lead gainers in the S&P 500 and Nasdaq 100, and Micron Technology (MU) closed up more than +5% after Melius Research LLC initiated coverage on the stocks with buy recommendations.
Stanley Black & Decker (SWK) closed up more than +4% after its board authorized a $500 million stock buyback program.
Verizon Communications (VZ) closed up more than +1% to lead gainers in the Dow Jones Industrials after boosting its full-year adjusted EPS forecast to $4.95-$4.99 from a previous forecast of $4.90-$4.95, stronger than the consensus of $4.90.
Fortinet (FTNT) closed up more than +1% after Arete double-upgraded the stock to buy from sell with a price target of $104.
Crowdstrike Holdings (CRWD) closed up more than +1% after Mizuho Securities upgraded the stock to outperform from neutral with a price target of $520.
VeraDermics (MANE) closed up more than +46% after reporting that its oral extended-release minoxidil formulation VDPHL01 met all primary and key secondary endpoints with high statistical significance in a Phase 2/3 clinical trial for male pattern baldness.
Organon & Co. (OGN) closed up more than +16% after Sun Pharmaceutical Industries Ltd. had lined up a short-term loan to finance its $12 billion acquisition of the company.
Oruka Therapeutics (ORKA) closed up more than +10% after giving positive results from a mid-stage trial of its therapy to treat plaque psoriasis.
Domino’s Pizza (DPZ) closed down more than -8% to lead losers in the S&P 500 after reporting Q1 revenue of $1.15 billion, below the consensus of $1.16 billion.
GE Vernova (GEV) closed down more than -2% after BNP Paribas downgraded the stock to neutral from buy.
Adobe (ADBE) closed down more than -2% after Mizuho Securities downgraded the stock to neutral from outperform.
Earnings Reports(4/28/2026)
Allegion plc (ALLE), American Tower Corp (AMT), Arch Capital Group Ltd (ACGL), Avery Dennison Corp (AVY), Booking Holdings Inc (BKNG), BXP Inc (BXP), Centene Corp (CNC), CMS Energy Corp (CMS), Coca-Cola Co/The (KO), Corning Inc (GLW), CoStar Group Inc (CSGP), Ecolab Inc (ECL), Edison International (EIX), Equity Residential (EQR), Essex Property Trust Inc (ESS), Expand Energy Corp (EXE), Extra Space Storage Inc (EXR), F5 Inc (FFIV), Fair Isaac Corp (FICO), FirstEnergy Corp (FE), Franklin Resources Inc (BEN), General Motors Co (GM), Hilton Worldwide Holdings Inc (HLT), Incyte Corp (INCY), Ingersoll Rand Inc (IR), Invesco Ltd (IVZ), Kimberly-Clark Corp (KMB), Mondelez International Inc (MDLZ), NXP Semiconductors NV (NXPI), Omnicom Group Inc (OMC), ONEOK Inc (OKE), PACCAR Inc (PCAR), Pentair PLC (PNR), PPG Industries Inc (PPG), Robinhood Markets Inc (HOOD), S&P Global Inc (SPGI), Seagate Technology Holdings PL (STX), Sherwin-Williams Co/The (SHW), Starbucks Corp (SBUX), Sysco Corp (SYY), Teradyne Inc (TER), T-Mobile US Inc (TMUS), United Parcel Service Inc (UPS), Veralto Corp (VLTO), Visa Inc (V), Waste Management Inc (WM), Welltower Inc (WELL), Xylem Inc/NY (XYL), Zimmer Biomet Holdings Inc (ZBH).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tech Earnings Optimism Powers Stocks Higher

U.S. markets exhibited volatility but ended last week with overall gains. Major indexes, including the Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average, increased by 1.8%, 0.8% and 0.4%, respectively. Investor sentiment was influenced by developments in the U.S.-Iran ceasefire. Easing tensions earlier in the week were followed by a pause in diplomatic talks.
The broader economic outlook was largely supported by a 1.7% increase in retail sales in March, fueled by a 15.5% spike in gas station receipts. The stronger-than-expected retail sales indicate resilient consumer demand. Despite this spending, consumer sentiment for April hit a record low of 47.6, reflecting deep anxiety over the Iran conflict and a 4.8% jump in inflation expectations. The labor market data showed a minor softening, with jobless claims ticking up to 214,000 and continuing claims rising to 1.821 million. While domestic data suggests a sturdy economic floor, the market remains highly sensitive to geopolitical developments and policy uncertainties.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.
Here are some of our key achievements:
Yara International and BGC Following Zacks Rank Upgrade
Shares of Yara International ASA YARIY have gained 24.1% (versus the S&P 500’s 4.6% increase) since it was upgraded to a Zacks Rank #1 (Strong Buy) on Feb. 18.
Another stock, BGC Group, Inc. BGC, which was upgraded to a Zacks Rank #2 (Buy) on February 17, has returned 22.4% (versus the S&P 500’s 4.8% increase) since then.
Zacks Rank, our short-term rating system, has earnings estimate revisions at its core. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
An equal-weight portfolio of Zacks Rank # 1 stocks outperformed the equal-weight S&P 500 index by 7.7 percentage points in the year-to-date 2026 period (through March 3, 2026); The Zacks Rank #1 stocks returned +6.57% through March 3, while the equal-weight S&P 500 index lost -1.14% of its value.
In 2025, this hypothetical equal-weight portfolio returned +17.81% vs. +10.85% for the index, while performance comparison was +22.4% vs. +13.7% in 2024. Over the preceding 10-year period (2016 through 2025), this portfolio of qual-weight Zacks Rank #1 stocks outperformed the equal-weight S&P 500 index by more than 7 percentage points (+18.55% vs. +11.65%).
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Zacks Recommendation Upgrades Sandisk and Dave
Shares of Sandisk Corporation SNDK and Dave Inc. DAVE have advanced 59.4% (versus the S&P 500’s 4.3% increase) and 54.9% (versus the S&P 500’s 4.8% increase), since their Zacks Recommendation was upgraded to Outperform on February 20 and February 16, respectively.
While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.
Zacks Focus List Stocks AMD, Casey's Shoot Up
Shares of Advanced Micro Devices, Inc. AMD, which belongs to the Zacks Focus List, have gained 38% over the past 12 weeks. The stock was added to the Focus List on May 19, 2025. Another Focus-List holding, Casey's General Stores, Inc. CASY, which was added to the portfolio on August 20, 2019, has returned 29.6% over the past 12 weeks. The S&P 500 has advanced 2.7% over this period.
The 50-stock Focus List portfolio returned +6.65% in 2026 (through February 28) vs. +0.68% for the S&P 500 index and +7.06% for the equal-weight version of the index.
The portfolio returned +22.1% in 2025 vs. +17.9% for the S&P 500 index and +11.4% for the equal-weight version of the index.
The Zacks Focus List portfolio returned +18.41% in 2024 vs. +25.04% for the S&P 500 index and +13% for the equal-weight S&P 500 index. The portfolio had returned +29.54% in 2023 vs. +26.28% for the S&P 500 index and +13.61% for the equal-weight S&P 500 index. In 2022, the portfolio returned -15.2% vs. the S&P 500 index’s -17.96%.
Through February 28, 2026, the portfolio’s rolling returns on a one-year, three-year, five-year, 10-year basis, and since 2004 have been +29.35% (vs. +17% for the S&P 500 index), +23.13% (vs. +21.81%), +14.15% (vs. +14.19%), +16.79% (vs. +15.50%) and +12.38% vs. (+10.66%), respectively.
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Zacks ECAP Stocks UnitedHealth and Costco Make Significant Gains
UnitedHealth Group Incorporated UNH, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 25.6% over the past 12 weeks. Costco Wholesale Corporation COST has followed UnitedHealth with 4.2% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned -2.3% in the fourth quarter of 2025 vs. the S&P 500 index’s +2.7% gain (SPY ETF). For 2025 as a whole, the portfolio returned -1.67% vs. +17.9% gain for the S&P 500 index.
For the year 2024, the portfolio returned +16.26% vs. +24.89% for the S&P 500 index (SPY ETF). In 2023, the portfolio returned +12.17% vs. +26.28% for the S&P 500 index. The portfolio returned -4.7% in 2022 vs. the S&P 500 index’s -17.96%.
With little to no turnover and annual rebalance periodicity, ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.
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Zacks ECDP Stocks Illinois Tool Works and Starbucks Outperform Peers
Illinois Tool Works Inc. ITW, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 4.1% over the past 12 weeks. Another ECDP stock, Starbucks Corporation SBUX, has also climbed 3.1% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.
With an extremely low beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps to significantly mitigate risk.
The Zacks Earnings Certain Dividend Portfolio (ECDP) returned -2.1% in 2025 Q4 vs. the S&P 500 index’s +2.7% gain and the Dividend Aristocrats ETF’s (NOBL) +1.6% return. For 2025, the portfolio returned -0.6% vs. +6.8% gain for the Dividend Aristocrat ETF.
For the full year of 2024, the portfolio returned +6.95% vs. +24.89% for the S&P 500 index and +6.72% for NOBL.
The portfolio returned -0.9% in 2023 vs. +26.28% for the S&P 500 index and +8.11% for NOBL. The portfolio returned -2.3% in 2022 vs. -17.96% for the S&P 500 index and -8.34% for NOBL.
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Zacks Top 10 Stock Amkor Technology Delivers Solid Returns
Amkor Technology, Inc. AMKR, from the Zacks Top 10 Stocks for 2026, has jumped 82% since the list was released on January 5, 2026, compared with the S&P 500 index’s 4.5% increase during this period.
The Top 10 portfolio retuned +10.5% in 2026 (through February 28) vs. +0.5% for the S&P 500 index and +6.3% for the equal-weight version of the index.
The Top 10 portfolio returned +22.6% in 2025 vs. +17.9% for the S&P 500 index and +11.4% for the equal-weight version of the index.
The Top 10 portfolio returned +62.98% in 2024, vs. +25.04% for the S&P 500 index and +13% for the equal-weight version of the index. The portfolio had returned +25.15% in 2023 vs. +26.28% for the S&P 500 index.
Through the end of February 2026, the Top 10 portfolio has produced a cumulative return of +2,761.6% since 2012 vs. +564.8% for the S&P 500 index and +435% for the equal-weight version of the index. The portfolio has produced an average annual return of +26.4% in the period 2012 through February 28, 2026, vs. +13% for the S&P 500 index and +11% for the equal-weight version of the index.
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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.

Beat the Market the Zacks Way: Sandisk, AMD, Amkor Technology in Focus

Key Points
UnitedHealth's costs came in lower than expected in its most recent quarter.
The company soundly beat expectations on its top and bottom lines.
Investigations into its billing practices, however, remain ongoing.
Shares of UnitedHealth Group (NYSE: UNH) have been jumping recently after the company posted some impressive quarterly results. For a company that's been on the wrong side of analyst expectations for a while, it's welcome news for frustrated investors, who have experienced significant losses over the past few years.
But investing is based on the long term, and how a company did during its most recent three-month period is not necessarily indicative of where it may be heading in the future. Is it a good idea to invest in UnitedHealth Group today, and has it done enough to prove that it's a safe stock to own?
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Lower costs enabled the business to deliver a strong beat
A big problem for health insurance companies in recent years has been rising costs. Utilization rates are up, and that's led to higher-than-typical costs. A key metric for UnitedHealth is the medical benefit ratio, which is how much it pays for medical expenses in relation to the premiums it collects. This past quarter, analysts expected the rate to be at 85.5%, and it came in at 83.9%, which was lower than what it was a year ago -- 84.8%.
The reduced costs enabled UnitedHealth to post better-than-expected profits, as its adjusted earnings per share for the quarter were $7.23, well below expectations of $6.57. Its revenue also totaled $111.7 billion, which was higher than the $109.6 billion that Wall Street was estimating.
The big question, however, is whether UnitedHealth can build off these results and prove that the strong quarter wasn't an anomaly. Poor performances in the past are a big reason why the stock has been an underwhelming buy. Last year, shares of UnitedHealth crashed by 35%.
There's still some risk with the stock
Although UnitedHealth's recent results were encouraging, investors may still want to tread cautiously here. There are, after all, investigations going on into its billing practices.
Senator Chuck Grassley of Iowa has been particularly worried about the company's Medicare Advantage operations. Based on an investigation he launched, a report found that UnitedHealth has been using "aggressive strategies" to boost risk adjustment scores, which can lead to greater revenue.
If the government imposes restrictions or tighter regulations that impact the way UnitedHealth conducts its operations, that can have a drastic impact on the business, at a time when its financial position isn't looking as strong as it once was. That's why, while it may be tempting to jump on the bandwagon, I'd take a wait-and-see approach with the healthcare stock, as it still has a long way to go in proving that it's a safe buy.
Should you buy stock in UnitedHealth Group right now?
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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is It Safe to Buy UnitedHealth Stock Again?

Key Points
UnitedHealth raised its full-year adjusted earnings outlook after a stronger first quarter.
The company's medical care ratio improved.
The dividend yield is appealing, but the stock's recent rally changes the setup.
Shares of UnitedHealth Group (NYSE: UNH) have rebounded sharply over the last 30 days. Up about 30% over that span, the health benefits and services giant is suddenly back on investors' radar again.
With the stock surging so much, have investors who didn't buy shares when it was lower missed out? Or is the stock still attractive, even after its recent run-up?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
A look at UnitedHealth's latest earnings report shows a business that is making progress. But some factors in the report raise eyebrows, too.
A solid start to 2026
UnitedHealth's first-quarter revenue rose 2% year over year to $111.7 billion, and non-GAAP (adjusted) earnings per share came in at $7.23. This was only slightly ahead of $7.20 in the year-ago quarter, but it's significantly above fourth-quarter 2025 levels, when adjusted earnings per share were just $2.11 as the company wrapped up a restructuring.
The more important figure may have been the medical care ratio, or medical costs as a percent of premium revenue. UnitedHealth's first-quarter medical care ratio was 83.9%, down from 84.8% in the year-ago quarter. Management said the improvement was driven by strong medical cost management and favorable reserve development, partially offset by elevated utilization and unit cost trends.
This is an important development because the main issue plaguing the company last year was profitability, and not revenue trends, as elevated medical cost trends and Medicare funding pressure weighed on margins.
Also helping the bull case, management used its first-quarter update to boost its full-year outlook.
UnitedHealth now expects 2026 adjusted earnings of more than $18.25 per share, up from its prior outlook for more than $17.75 per share. At the current stock price, this puts shares at about 19 times the low end of management's adjusted earnings outlook.
But perhaps the clearest evidence of UnitedHealth's recovery showed up in its health benefits business, UnitedHealthcare. First-quarter revenue in this segment increased to $86.3 billion from $84.6 billion in the year-ago quarter.
Momentum like this helped the overall business. The health insurance company's operating earnings rose from $5.2 billion in the year-ago period to $5.7 billion, and its operating margin expanded from 6.2% to 6.6%. Management said in the company's first-quarter update that this operating margin expansion was primarily due to repricing across its lines of business "in response to cost trends that remain elevated but in line with expectations."
Some reasons to be concerned
But not everything is moving in the right direction for UnitedHealth.
UnitedHealth served 49.1 million people in UnitedHealthcare in the first quarter -- down from 49.8 million at the end of 2025. Additionally, seniors served through Medicare Advantage declined by 965,000 during the quarter.
Further, Optum -- UnitedHealth's healthcare services business -- is still a mixed picture.
Optum's first-quarter revenue was $63.7 billion, slightly below the year-ago period, and its operating earnings fell to $3.3 billion from $3.9 billion.
So, is UnitedHealth stock a buy?
The stock's dividend yield of about 2.5% certainly looks appealing. Even more, it looks manageable; with management guiding for more than $18.25 in adjusted earnings per share and the company's current quarterly dividend payout totaling $8.84 annually, UnitedHealth will pay out less than half of its expected earnings over the next 12 months.
That said, UnitedHealth's stock's recent move higher may have fully priced in the underlying improvement in the company's business. Yes, first-quarter results were encouraging. The medical care ratio improved, management raised guidance, and pricing actions seem to be helping. But membership attrition and Optum's weaker year-over-year operating earnings are real concerns.
For investors who bought when pessimism was much greater, the recent move may feel justified. But for new investors looking at the stock today, the setup is arguably less attractive.
At about 19 times management's 2026 adjusted earnings outlook, UnitedHealth stock is not egregiously expensive. But after a more than 30% move in a month, I don't think it is cheap enough to compensate investors for the remaining uncertainties in the turnaround.
Overall, I think shares look too pricey after their recent run-up. So I'll stay on the sidelines.
Should you buy stock in UnitedHealth Group right now?
Before you buy stock in UnitedHealth Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and UnitedHealth Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $500,572!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,900!*
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Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UnitedHealth Stock Is Up More Than 30% in 1 Month and Pays a 2.5% Dividend Yield. Time to Buy?

Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Schwab US Dividend Equity ETF, which added 13,750,000 units, or a 0.5% increase week over week. Among the largest underlying components of SCHD, in morning trading today Texas Instruments is down about 2.3%, and UnitedHealth Group is lower by about 0.2%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the Defiance Daily Target 2X Short HOOD ETF, which added 60,000 units, for a 40.0% increase in outstanding units.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SCHD, HOOZ: Big ETF Inflows

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What are the Zacks Style Scores?
The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value Score
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
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While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum Score
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
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If you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank
The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.93% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: UnitedHealth Group (UNH)
UnitedHealth Group, Inc. provides a wide range of health care products and services, such as health maintenance organizations (HMOs), point of service plans (POS), preferred provider organizations (PPOs), and managed fee-for-service programs.
UNH is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Medical stock. UNH has a Momentum Style Score of A, and shares are up 32.3% over the past four weeks.
10 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.36 to $18.06 per share. UNH boasts an average earnings surprise of +0.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, UNH should be on investors' short list.
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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.

Why UnitedHealth Group (UNH) is a Top Momentum Stock for the Long-Term

For Immediate Releases
Chicago, IL – April 24, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include UnitedHealth Group Inc. UNH, Morgan Stanley MS, RTX Corp. RTX, Homes Group, Inc. UHG and Motorsport Games Inc. MSGM.
Here are highlights from Friday’s Analyst Blog:
Top Research Reports for UnitedHealth, Morgan Stanley & RTX
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including UnitedHealth Group Inc., Morgan Stanley and RTX Corp., as well as two micro-cap stocks United Homes Group, Inc. and Motorsport Games Inc. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Jobless Claims Move Up Slightly, Pre-Markets Move Down
Today's Featured Research Reports
Shares of UnitedHealth have declined -0.6% over the past six months against the Zacks Medical - HMOs industry’s decline of -3.4%. The company is facing rising medical costs, which continue to pressure margins, reflected in an elevated MCR despite recent improvement, while elevated debt and interest expenses strain financial flexibility. It is currently overvalued compared with the industry. As such, we have a neutral recommendation.
Nevertheless, UnitedHealth’s first-quarter earnings beat estimates. It has shown steady revenue growth, driven by Optum and UnitedHealthcare. Its strong market position and expansion initiatives, amid rising healthcare demand, support long-term growth.
UnitedHealth expects total revenues to be over $439 billion in 2026. Optum remains a key driver via pharmacy services, tech integration and government solutions. Commercial membership also grew for UNH, aiding margins despite headwinds in government programs. Robust cash generation supports shareholder returns and financial flexibility.
(You can read the full research report on UnitedHealth here >>>)
Morgan Stanley’s shares have outperformed the Zacks Financial - Investment Bank industry over the past six months (+17.4% vs. +6.2%). The company’s first-quarter 2026 results showed capital markets strength. Increased focus on asset and wealth management operations, along with its strategic alliances and acquisitions, will support its top line.
The EquityZen acquisition broadens private markets capabilities and should deepen client relationships over time. The performance of the investment banking (IB) business will continue to be driven by a strong pipeline, resilient M&A demand, lower rates and the company’s global footprint. Its efficient capital distributions reflect a solid balance sheet.
However, expenses will remain elevated due to expansion and tech investments. While trading revenues have been rising, growth in the same might become challenging in the future due to the volatile nature of the business.
(You can read the full research report on Morgan Stanley here >>>)
Shares of RTX have outperformed the Zacks Aerospace - Defense industry over the past six months (+2.1% vs. -7.6%). The company’s first-quarter 2026 earnings beat expectations. It continues to receive ample orders for its wide range of combat-proven defense products from the Pentagon and its foreign allies. Steadily improving global commercial air traffic boosts the company's sales.
Strong volumes and a favorable mix across large commercial engines and Pratt Canada operations are expected to support the company’s growth momentum in the commercial aerospace market. This resulted in RTX registering a backlog of $271 billion as of March 31, 2026.
Yet, the uncertainties created by the recent imposition of U.S. government-issued import tariffs pose a risk for RTX. Supply-chain challenges continue to affect the aerospace sector, which may adversely impact RTX.
(You can read the full research report on RTX here >>>)
United Homes Group’s shares have underperformed the Zacks Real Estate - Development industry over the past six months (-32.4% vs. -0.1%). This microcap company with market capitalization of $69.42 million has seen its volumes, orders and EBITDA decline, reflecting weak demand, rising cancellations and reliance on incentives, constraining operating leverage.
Cash usage and leverage remain elevated, increasing rate sensitivity. A pending merger provides near-term value clarity but adds execution risk. Valuation suggests the market is pricing in sustained demand softness, margin pressure and execution risk, while assigning limited credit to longer-term margin expansion.
Nevertheless, Product repositioning and cost reengineering are supporting structural margin resilience, with margins expanding despite heavier discounting, driven by lower build costs and design standardization. Southeast exposure aligns with migration and affordability tailwinds, while pricing remains stable. Backlog growth improves visibility, and a land-light model limits capital risk and enhances flexibility.
(You can read the full research report on United Homes Group here >>>)
Shares of Motorsport Games have outperformed the Zacks Gaming industry over the past six months (+67.8% vs. -23.5%). This microcap company with a market capitalization of $21.73 million has its investment case centered on a flagship racing title that has evolved into a durable monetization platform through ongoing content updates and a growing subscription ecosystem.
Strong digital mix and disciplined cost control are driving margin expansion and improving operating leverage, while enhanced liquidity provides flexibility to fund platform expansion and new development. Engagement-led growth, supported by competitive features and community infrastructure, reinforces recurring revenue potential and user retention.
However, risks stem from heavy reliance on a single franchise and key distribution channels, alongside exposure to licensing commitments and execution demands tied to multi-platform expansion. Earnings sustainability increasingly depends on continued content success and subscription growth, while potential dilution and financing constraints could limit shareholder upside.
(You can read the full research report on Motorsport Games here >>>)
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Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
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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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog UnitedHealth, Morgan Stanley, RTX, Homes Group and Motorsport

The 2026 Q1 earnings season continues to roll along, with a wide variety of companies revealing results in the coming days. The cycle, while still a bit in its early phase, has overall been strong, with growth remaining solid and a decent number of companies exceeding quarterly expectations.
And concerning those exceeding quarterly expectations, UnitedHealth Group UNH and Quest Diagnostics DGX both raised their outlooks, with each also seeing a nice pop following their results.
UnitedHealth Bounces Back
UnitedHealth posted a double beat relative to our consensus expectations, with both EPS and sales moving modestly higher year-over-year. It reflected the company’s first double-beat in several quarters, helping underpin the favorable reaction shares enjoyed post-earnings.
The company’s EPS outlook remains bullish, with estimates drifting higher across all timeframes illustrated below. The favorable revisions are led by a guidance upgrade, with UNH raising its FY26 earnings outlook.
Image Source: Zacks Investment Research
Quest Diagnostics Posts Double Digit Growth
Quest Diagnostics similarly posted a double-beat relative to our consensus expectations, marking the sixth consecutive period in which it exceeded both EPS and sales expectations. Sales grew 9.2% from the year-ago period, whereas EPS grew by a double-digit 13.1% YoY.
The company raised both its EPS and sales guidance for its current FY26 amid the favorable results, with DGX also sporting a similarly strong revisions picture, as shown below.
Image Source: Zacks Investment Research
Bottom Line
Guidance upgrades are generally among the most bullish announcements a company can make, signaling that the outlook is even better than previously expected. Upgrades commonly lead to share outperformance, with both UnitedHealth UNH and Quest Diagnostics DGX seeing bullish share reactions following their results.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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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.

Indicator	TTM Median
P/E	24.52 21.97
Price/Sales	0.66 3.13
P/B	2.89 2.24
P/FCF	16.92 18.90

Indicator	TTM Median
ROE	11.97 24.62
ROA	3.88 6.73
ROI	6.96 9.85
Net Worth	294.37 0.21
Quick Ratio	0.00 1.72
Current Ratio	0.25 2.84

Indicator	TTM Median
Net Profit Margin	2.69 11.21
Operating Margin	4.24 14.57
Gross Margin	39.69 69.23
Return on tangible equity	0.00 54.38

Indicator	TTM Median
EPS	7.23 0.37
EPS Forecast	6.46 0.37
Revenue	113.22B 16.00M
Gross Profit	113.22B —
EBITDA	5.41B —

UnitedHealth Group Incorporated

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