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.

UnitedHealth выглядит как крупный и прибыльный бизнес, но текущая фундаментальная картина уже не поддерживает агрессивную премию к цене. По мультипликаторам картина смешанная: P/E и P/FCF находятся около отраслевой медианы, P/S заметно ниже медианы и выглядит как аргумент в пользу относительной недооценки, тогда как P/B выше медианы и намекает на более дорогую оценку капитала. При этом динамика P/E и P/FCF в последние периоды была волатильной, что говорит не о стабильном улучшении, а о переоценке ожиданий рынком. Рентабельность заметно ослабла: ROE, ROA и ROI ниже отраслевых ориентиров, а их траектория за год ухудшилась по сравнению с более сильными уровнями в середине периода. Маржа прибыли также снизилась: net margin и operating margin остаются слабыми относительно сектора и не демонстрируют устойчивого восстановления. Сильной стороной остается масштаб бизнеса: выручка, активы и собственный капитал очень велики и продолжают расти, что поддерживает устойчивость компании и снижает риск резкого ухудшения профиля. Однако высокая долговая нагрузка относительно отрасли и очень слабые показатели ликвидности, особенно current ratio и quick ratio, ограничивают потенциал повышения оценки. Дивидендная доходность практически отсутствует, поэтому инвестор не получает дополнительной компенсации за ожидание через поток выплат. Отдельно настораживает резкое ухудшение net income в последнем TTM-показателе, что делает прибыльность менее предсказуемой. В сумме это не история сильной переоценки вниз, но и не кейс для повышения целевой цены: фундаментал скорее оправдывает умеренное снижение ожиданий из-за давления на маржу, ликвидность и доходность капитала. При этом масштаб, выручка и приемлемые по сектору P/E и P/FCF не позволяют делать глубокую негативную корректировку.

UnitedHealth Group Incorporated

Сильный индекс, незначительно упал. Быки в растерянности.

Strong index, slightly down. The bulls are confused.

Сильный индекс, без изменений. Рынок на стороне быков.

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

Слабый индекс, незначительно упал

Масштаб и выручка сильны, но рентабельность, ликвидность и долговая нагрузка слабее отрасли; оценка выглядит скорее слегка завышенной.

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Lennar Corp (Symbol: LEN), where a total of 14,864 contracts have traded so far, representing approximately 1.5 million underlying shares. That amounts to about 56.6% of LEN's average daily trading volume over the past month of 2.6 million shares. Particularly high volume was seen for the $90 strike put option expiring June 12, 2026, with 3,567 contracts trading so far today, representing approximately 356,700 underlying shares of LEN. Below is a chart showing LEN's trailing twelve month trading history, with the $90 strike highlighted in orange:
Citigroup Inc (Symbol: C) saw options trading volume of 56,742 contracts, representing approximately 5.7 million underlying shares or approximately 52.8% of C's average daily trading volume over the past month, of 10.7 million shares. Particularly high volume was seen for the $110 strike put option expiring July 02, 2026, with 8,780 contracts trading so far today, representing approximately 878,000 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $110 strike highlighted in orange:
And UnitedHealth Group Inc (Symbol: UNH) options are showing a volume of 35,022 contracts thus far today. That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 50% of UNH's average daily trading volume over the past month, of 7.0 million shares. Particularly high volume was seen for the $410 strike call option expiring June 12, 2026, with 2,397 contracts trading so far today, representing approximately 239,700 underlying shares of UNH. Below is a chart showing UNH's trailing twelve month trading history, with the $410 strike highlighted in orange:
For the various different available expirations for LEN options, C options, or UNH options, visit StockOptionsChannel.com.
Further LEN Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Friday Option Activity: LEN, C, UNH

Key Points
Even after a big climb higher this year, UnitedHealth Group is still down more than 30% from where it traded in 2024.
The company gets 44% of its business from Medicare and Medicaid.
A year ago, UnitedHealth Group (NYSE: UNH) stock was a disaster. It had fallen sharply after the company encountered higher-than-anticipated costs from its members, causing it to miss analysts' estimates for the first time since the 2008-09 financial crisis.
But today, UnitedHealth Group is trading near a 52-week high. The federal government has announced better-than-expected reimbursement rates for Medicare Advantage, margins have improved, and the stock has jumped 23% since the beginning of the year.
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But despite the rally, UnitedHealth Group stock remains down more than 34% from where it traded just two years ago. Does the stock have more room to run higher, or is this a good time for investors to take profits?
What's happening with UnitedHealth Group stock?
The company's failure to meet expectations in the first quarter of 2025 triggered the company's downturn, so a look at its recent performance is important.
Revenue was $111.72 billion, up 2% from a year ago -- but more importantly, it was better than the $109.57 billion analysts projected. Adjusted earnings per share came in at $7.23, versus analysts' expectations of $6.57.
The company announced its medical benefit ratio, which reflects the percentage of revenue spent on healthcare costs, dropped 90 basis points to 83.9%. UnitedHealth Group also scaled back its Medicare Advantage plans in several states to improve its financial position.
UnitedHealth reported serving 7.55 million Medicare Advantage patients in the first quarter, down from 8.45 million a year ago. Even with those cuts, the UnitedHealthcare Medicare and Retirement division, which includes Medicare Advantage, saw revenue grow 1% year over year.
The company's government business is a huge part of UnitedHealth Group. About 44% of its revenue comes from the Centers for Medicare & Medicaid Services.
"We continue to expect membership attrition and negative margins in 2026 in light of continuing high trends and insufficient funding, with modest margin improvements beginning in 2027," said UnitedHealthcare CEO Tim Noel.
Is UnitedHealth Group a buy now?
I see two primary tailwinds for UnitedHealth Group right now -- but I think only one is really within the company's control. UnitedHealth Group launched a new generative artificial intelligence (AI) chatbot, Avery, that coordinates healthcare experiences for members and learns from their interactions. Avery was available to 6.5 million members this spring, and the company plans to expand it to serve more than 20 million by the end of the year.
The second tailwind is entirely contingent on the federal government. In April, the government announced better-than-expected payment rates for Medicare Advantage plans, increasing payments by 2.48% in 2027. That is a significant jump, considering the government had been considering a paltry 0.09% increase.
The improved payments will help UnitedHealth Group's bottom line, particularly in 2027. That's why investors are so bullish. But this could be a short-lived victory, and the Medicare Advantage rate could slow again in subsequent years.
I think the AI initiatives are important to UnitedHealth Group's future, but I'm less enthusiastic about its reliance on Medicare and Medicaid. I'm always uncomfortable when a company can't directly control its fate.
As long as the government continues to raise payment rates, UnitedHealth Group should maintain acceptable margins and remain a top health insurance stock. But if the government lowers payments again, as in its initial 2027 rate proposal, UnitedHealth Group's margins will come under pressure.
Should you buy stock in UnitedHealth Group right 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 Group Just Hit a 52-Week High. Is It Too Late to Buy This Soaring Stock?

HealthEquity, Inc. HQY is benefiting from expanding margins, improving operating leverage and technology-driven efficiency initiatives. The company is also investing in security enhancements and automation tools to strengthen customer service and fraud prevention capabilities. However, despite the improving fundamentals, HealthEquity reflects a balanced risk-reward profile.
The key question for investors is whether stronger profitability and higher guidance can outweigh ongoing exposure to custodial yield fluctuations, cybersecurity-related uncertainties and competitive pressures.
HQY’s Strong Fiscal First-Quarter Performance Supports Outlook
HealthEquity delivered adjusted earnings per share of $1.24 in the first quarter of fiscal 2027, surpassing the Zacks Consensus Estimate by 11.7%. Earnings increased 28% year over year, driven by operating leverage and continued business momentum.
Revenues rose 7% year over year to $354.6 million and modestly exceeded expectations. Growth was supported by contributions from service, custodial and interchange revenues, demonstrating broad-based strength across the business.
HQY Margin Expansion Highlights Operating Leverage
Profitability remained a key highlight during the quarter. Gross profit increased 14.3% year over year to $256.3 million, while gross margin expanded 450 basis points to 72.3%.
Although HealthEquity continued to invest in growth and technology initiatives, margin performance remained strong. Sales and marketing expenses increased 3.3% year over year to $26.8 million, technology and development expenses rose 10.3% year over year to $67.8 million, and general and administrative expenses climbed 21.9% year over year to $31.1 million. Even with these investments, operating income increased 23.9%, resulting in a 390-basis-point expansion in operating margin to 29%.
Image Source: Zacks Investment Research
HQY’s Raised Guidance Reflects Confidence
Management raised its fiscal 2027 outlook following the strong start to the year. Revenues are now expected to be in the range of $1.41-$1.42 billion, up from the prior guidance of $1.405-$1.415 billion.
Adjusted earnings per share are now projected to be between $4.66 and $4.73 compared with the earlier range of $4.56-$4.65. The higher outlook reflects stronger participation in enhanced-rate offerings, benefits from the company's hedging strategy designed to reduce custodial yield volatility and continued operational improvements.
Solid Financial Position Supports Flexibility
HealthEquity ended the quarter with cash and cash equivalents of $265.4 million. Total debt declined to $942.6 million from $957.4 million at fiscal 2026-end, reflecting ongoing balance-sheet improvement.
The company's interest coverage ratio improved to 6.4 times from 5.9 times at the end of fiscal 2026. Meanwhile, operating cash flow increased significantly to $97.5 million from $64.7 million in the year-ago period, highlighting stronger cash generation and improving earnings quality.
HQY Share Repurchases and Capital Allocation
HealthEquity’s active share repurchase plan is part of the current setup and can support per-share outcomes when operating performance is also improving. Buybacks tend to matter most when they are funded by sustained cash generation and when the business outlook remains stable enough to avoid a reversal in capital priorities.
Risks Remain on the Radar
Despite the favorable operating trends, investors should continue monitoring several risk factors. HealthEquity remains sensitive to changes in custodial yields and client contract dynamics. In addition, cybersecurity-related litigation and regulatory developments continue to create uncertainty.
The company also operates in a competitive environment where larger players such as UnitedHealth Group UNH and Webster Financial WBS possess significant scale and distribution advantages.
Investment Takeaway
HealthEquity is executing well, as evidenced by expanding margins, rising cash flow and increased fiscal 2027 guidance. Management's focus on automation, fraud reduction and security enhancements is supporting profitability while positioning the business for long-term growth.
However, exposure to custodial yield fluctuations, cybersecurity overhangs and competitive pressures prevents a more aggressive stance at this stage. Consequently, HealthEquity's current Zacks Rank #3 (Hold) appears appropriate as investors await further confirmation that recent margin gains and guidance improvements can be sustained. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
HQY’s Sales & EPS Picture
In fiscal 2027, HQY is expected to experience growth of 7.8% in revenues. On the profitability front, earnings per share are expected to improve 17.8% year over year.
Image Source: Zacks Investment Research
HQY’s Valuation Picture
HQY currently trades at a forward 12-months price-to-sales ratio of 5.2X, above its industry’s current level of 0.5X.
Image Source: Zacks Investment Research
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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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.

Is HealthEquity's Improving Profitability Enough to Offset Key Risks?

Geopolitical tensions, a surge in global oil prices and economic uncertainties, owing to rising inflation, have turned Wall Street volatile. Stocks have been suffering lately as uncertainty over an end to the war with Iran has dented investors’ confidence.
Also, hopes of a rate cut are a distant dream as the Federal Reserve has indicated a rate hike if inflation remains elevated.
Amid the ongoing uncertainty, conservative investors seeking reliable income and looking for ways to protect their capital may want to consider holding or investing in dividend-paying stocks.
Such stocks provide steady earnings through regular dividend payouts and can help mitigate the effects of market volatility. Three such stocks are: Casey's General Stores, Inc. CASY, CEMEX, S.A.B. de C.V. CX and UnitedHealth Group UNH.
Geopolitical Uncertainty, High Inflation Raise Concerns
President Donald Trump on Wednesday suggested that the Iran war is far from over as negotiations with Tehran were taking “too long.” Investors had remained hopeful for over a month that the United States and Iran could reach a peace deal soon. However, a fresh round of attacks carried out earlier this week has again proved that the ceasefire remains fragile.
Oil prices have spiked nearly 40% since the beginning of the war, leading to a surge in inflation over the past two months.
Consumer price index (CPI) climbed 0.6% in April after increasing 0.9% in March. On an annual basis, CPI was up 3.8% in April compared with the same month a year earlier, marking its highest year-over-year reading since May 2023. Economists believe inflation rose further in May.
Investors were hopeful that the Federal Reserve would go for a rate cut in the second half of the year. However, several Fed officials believe a 25-basis-point rate cut will be necessary if inflation remains above the Fed’s 2% target. A rate hike could keep markets volatile for a longer period.
3 Stocks That Recently Announced Dividend Hikes
Casey's General Stores
Casey's General Stores, Inc. operates convenience stores under the Casey's and Casey's General Store names in 16 states, mainly Iowa, Missouri and Illinois. CASY offers a comprehensive range of products and services to meet the needs of its customers. Casey’s General Stores has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On June 9, Casey's General Stores announced that its shareholders would receive a dividend of $0.65 a share on Aug. 14. CASY has a dividend yield of 0.30%. Over the past five years, Casey's General Stores has increased its dividend six times, and its payout ratio presently sits at 13% of earnings. Check Casey's General Stores' dividend history here.
CEMEX
CEMEX, S.A.B. de C.V. is one of the largest cement companies in the world, with close to 78 million metric tons of production capacity. Through operating subsidiaries in four continents, CX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker. CEMEX has a Zacks Rank #3.
On June 5, CEMEX declared that its shareholders would receive a dividend of $0.03 a share on June 29. CX has a dividend yield of 0.75%. Over the past five years, CEMEX has increased its dividend four times, and its payout ratio presently sits at 25% of earnings. Check CEMEX’s dividend history here.
UnitedHealth Group
UnitedHealth Group provides a wide range of healthcare products and services, such as health maintenance organizations, point of service plans, preferred provider organizations and managed fee-for-service programs. UNH has the largest and most diverse membership base within the managed-care organization market, which gives it significant competitive advantages.
On June 3, UnitedHealth Group announced that its shareholders would receive a dividend of $2.32 a share on June 23. UNH has a dividend yield of 2.14%. Over the past five years, UnitedHealth Group has increased its dividend six times, and its payout ratio at present sits at 54% of earnings. Check UnitedHealth Group’s dividend history here.
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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.

3 Stocks That Announced Dividend Hikes Amid Geopolitical Tensions

UnitedHealth Group (UNH) closed at $407.73 in the latest trading session, marking a -1.28% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 1.62% for the day. On the other hand, the Dow registered a loss of 1.87%, and the technology-centric Nasdaq decreased by 1.98%.
Heading into today, shares of the largest U.S. health insurer had gained 4.19% over the past month, lagging the Medical sector's gain of 5.04% and outpacing the S&P 500's loss of 0.03%.
The upcoming earnings release of UnitedHealth Group will be of great interest to investors. In that report, analysts expect UnitedHealth Group to post earnings of $4.84 per share. This would mark year-over-year growth of 18.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $110.05 billion, down 1.4% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $18.32 per share and revenue of $443.7 billion, indicating changes of +12.05% and -0.86%, 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, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. At present, UnitedHealth Group boasts a Zacks Rank of #3 (Hold).
In terms of valuation, UnitedHealth Group is currently trading at a Forward P/E ratio of 22.55. Its industry sports an average Forward P/E of 19.11, so one might conclude that UnitedHealth Group is trading at a premium comparatively.
Also, we should mention that UNH has a PEG ratio of 1.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Medical - HMOs industry was having an average PEG ratio of 1.14.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 25, putting it in the top 11% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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) Stock Moves -1.28%: What You Should Know

Wall Street witnessed a rout last week due to growing fears of rising rates. The tech-heavy NASDAQ 100 Index lost 4.5% last week, the S&P 500 slumped 2.6%, the Dow Jones slipped 0.3% and the Russell 2000 retreated over 2.9%.
Nonfarm payrolls jumped a seasonally adjusted 172,000 in May, down slightly from the upwardly revised 179,000 in April and way higher than the Dow Jones consensus estimate of 80,000, as quoted on CNBC. Such a hot jobs report along with higher inflation fueled Fed rate hike bets.
Chip stocks – which fall in the category of growth investing – were hammered on June 5, 2026, with the semiconductor sector suffering its steepest decline since April 2025, as quoted on Yahoo Finance. The slump has erased more than $1 trillion in market value as investors rapidly unwind positions tied to the AI boom.
Against this backdrop, the Dow Jones should perform better than the S&P 500 and the Nasdaq. Let’s tell you why.
Fed Policy Tightening in the Cards?
The Personal Consumption Expenditures (PCE) Index, the central bank's preferred inflation gauge, rose 3.8% year over year in April, up from 3.5% in March and marking the highest reading in three years. Core PCE, which excludes food and energy prices, accelerated to 3.3% from 3.2%, signaling that underlying inflation pressures remain elevated.
As inflation reaches its highest level in three years and the Iran conflict continues, Federal Reserve officials are watching closely to see whether rising prices become persistent enough to require interest rate hikes instead of keeping rates unchanged, as quoted on Yahoo Finance.
Several Fed officials emphasized concerns about inflation becoming embedded in the broader economy. Federal Reserve Governor Lisa Cook said she is monitoring whether businesses pass higher energy costs on to consumers and whether workers demand higher wages in response.
While her base case remains that inflation will moderate without additional tightening, she noted that she is prepared to support rate hikes if inflation fails to decline in a timely manner.
Why Dow Jones May Be Better-Positioned Than Nasdaq?
The Nasdaq is more tech-oriented, which means it is tilted toward growth stocks in nature. Growth stocks underperform in a rising-rate environment as their valuations depend on future earnings. The S&P 500 ranks second on this criterion, and among the big three, the Dow Jones is more value-focused. Value stocks fare better in a rising-rate backdrop.
Information technology takes up about 20% of the portfolio, while the S&P 500 allocates about 35% to the sector, and the Nasdaq-100 comprises about 65% of the portfolio. The AI space within the broader tech sector, in any case, comes under pressure occasionally due to bubble concerns. Analysts are divided in their opinions about AI overvaluation, as mentioned on a CNBC article.
Since the Dow Jones has less tech exposure than the other two big peers, AI valuations are likely to bother the Dow Jones to a lesser extent.
Healthcare Sector Gaining Prominence
The healthcare sector has received a boost lately as investors have rotated to non-cyclical and lower-valuation sectors for diversification from the tech space. Note that Health Care Select Sector SPDR Fund XLV has gained about 5.3% over the past month (as of June 5, 2026) against only 0.5% uptick in State Street SPDR S&P 500 ETF Trust SPY.
The healthcare sector has about 13% exposure to the fund DIA. Most importantly, UnitedHealth Group Inc. UNH has added about 8.8% over the past month (as of June 5, 2026). UNH stock is likely to see gains on successful strategy shift, per Bank of America, as quoted on CNBC.
At the time of writing, UnitedHealth Group currently has an average brokerage recommendation (ABR) of 1.54 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 27 brokerage firms. The presence of UNH in the Dow’s kitty is a plus at the current level.
Financials to Flex Muscles?
The Dow Jones’ potential rally could be backed by strength in the banking and financial stocks. Note that State Street Financial Select Sector SPDR ETF XLF has added about 2% last week against a slump in the broader market. Investors probably shifted toward value sectors and tended to move away from tech overvaluations. Financial stocks command about 28% of the Dow Jones.
Bottom Line
So, overall, the Dow Jones’ performance should be good in the near term, if not great. Its limited focus on tech stocks may now favor the index, as long as rising rate concerns flare up. Investors can keep a close tab on the State Street SPDR Dow Jones Industrial Average ETF Trust DIA and the ProShares Ultra Dow30 (DDM). However, if the Fed starts cutting rates again, the Nasdaq may again flex its muscles, put aside AI bubble fears and outsmart the Dow Jones.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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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 traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM Score
If you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
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 A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 21.81; value investors should take notice.
14 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.67 to $18.32 per share. UNH boasts an average earnings surprise of +0.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, UNH should be on investors' short list.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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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) is a Top-Ranked Value Stock: Should You Buy?

Wall Street faced a brutal sell-off last week, with the technology sector being hit the hardest. The tech-heavy Nasdaq Composite index fell 5.1%, while the S&P 500 and the Dow Jones Industrial Average dropped by 2.84% and 0.42%, respectively. Investors reacted sharply to stronger-than-expected economic data and growing concerns that the Federal Reserve may keep interest rates higher for longer. As a result, growth and technology stocks faced increased pressure. The market's nine-week winning streak came to an end as market participants reassessed valuations and the outlook for monetary policy.
The biggest surprise came from the May employment data, with nonfarm payrolls rising by 172,000, more than double the 80,000 expected. The unemployment rate held steady at 4.3%, while job openings jumped to 7.6 million in April, the highest level since late 2024. Average hourly earnings increased 0.3% from the previous month and 3.4% from a year earlier. Private-sector hiring also improved, with ADP reporting 122,000 new jobs, signaling broader business confidence. Productivity growth slowed sharply to just 0.3% in the first quarter, while inflation continued to outpace wage growth.
Despite the weekly decline, major U.S. indexes remain positive for the year. Strong hiring, steady unemployment and growing demand for workers suggest the economy is still expanding, although rising costs and a tighter labor supply could create headwinds in the months ahead.
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:
Extreme Networks and Aehr Test Systems Following Zacks Rank Upgrade
Shares of Extreme Networks, Inc. EXTR have gained 69.82% (versus the S&P 500’s 9.12% increase) since it was upgraded to a Zacks Rank #2 (Buy) on April 9.
Another stock, Aehr Test Systems, Inc. AEHR, which was upgraded to a Zacks Rank #2 on April 10, has returned 43% (versus the S&P 500’s 8.5% 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.
A portfolio of Zacks # 1 Rank (Strong Buy) stocks has outperformed the S&P 500 index by almost 8 percentage points this year. Through May 5, the Zacks # 1 Rank portfolio returned +13.14%, which compares to +5.19% for the S&P 500 index and +7.76% for the equal-weight version of the index in the year-to-date period.
Since its inception in 1988, this portfolio of Zacks # 1 Rank stocks has outperformed the market by 12.6 percentage points. The average annual return for this portfolio of Zacks # 1 Rank stocks since inception in 1988 was +24% through May 5, which compared to +11.5% gain for the S&P 500 index and +11.3% gain for the equal-weight version of the index.
Image Source: Zacks Investment Research
Zacks Recommendation Upgrades Bloom Energy and FGI Industries
Shares of Bloom Energy Corporation BE and FGI Industries Ltd. FGI have advanced 95.3% (versus the S&P 500’s 11.9% increase) and 54.3% (versus the S&P 500’s 7.5% increase), respectively, since their Zacks Recommendation was upgraded to Outperform on April 7 and April 14.
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 Lam Research, Virtu Financial Shoot Up
Shares of Lam Research Corporation LRCX, which belongs to the Zacks Focus List, have gained 52.2% over the past 12 weeks. The stock was added to the FocusList on December 5, 2016. Another Focus List holding, Virtu Financial, Inc. VIRT, which was added to the portfolio on July 31, 2023, has returned 27.2% over the past 12 weeks. The S&P 500 has advanced 9.7% over this period.
The 50-stock Focus List portfolio returned +10.73% in 2026 (through the end of May) vs. +11.27% for the S&P 500 index and +9.53% 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 May 31, 2026, the portfolio’s rolling returns on a one-year, three-year, five-year, ten-year basis, and since 2004 have been +31.42% (vs. +29.78% for the S&P 500 index), +24.26% (vs. +23.62%), +12.94% (vs. +14.15%), +16.40% (vs. +15.64%) and +12.42% vs. (+11.03%), respectively.
Unlock all of our powerful research, tools and analysis, including the Focus List, Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. Gain full access now >>
Zacks ECAP Stocks Monster Beverage and FactSet Research Make Significant Gains
Monster Beverage Corporation MNST, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 18.4% over the past 12 weeks. FactSet Research Systems Inc. FDS has followed Monster Beverage with 13.2% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned -7.14% in 2026 Q1 vs. -4.33% for the S&P 500 index.
For 2025, 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.
The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.
Zacks ECDP Stocks UnitedHealth and American Tower Outperform Peers
UnitedHealth Group Incorporated UNH, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 39.4% over the past 12 weeks. Another ECDP stock, American Tower Corporation AMT, has also climbed 2.9% 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 -1.43% in 2026 Q1 vs. -4.33% for the S&P 500 index and +2.3% for the Dividend Aristocrats ETF (NOBL).
The portfolio returned -0.6% in 2025 vs. +6.8% gain for the Dividend Aristocrat ETF. For the full year 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.
Click here to access this portfolio on Zacks Advisor Tools.
Zacks Top 10 Stock Monolithic Power Systems Delivers Solid Returns
Monolithic Power Systems MPWR, from the Zacks Top 10 Stocks for 2026, has jumped 58.2% since the list was released on January 5, 2026, compared with the S&P 500 index’s 8% increase during this period.
The Top 10 portfolio retuned +19.72% in 2026 (through May 31) vs. +11.27% for the S&P 500 index and +9.53% 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 May 2026, the Top 10 portfolio has produced a cumulative return of +3,001.9% since 2012 vs. +636.2.3% for the S&P 500 index and +451.2% for the equal-weight version of the index. The portfolio has produced an average annual return of +26.6% in the period 2012 through May 31, 2026 vs. +13.7% for the S&P 500 index and +11.03% for the equal-weight version of the index.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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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: Extreme Networks, Bloom Energy, UnitedHealth in Focus

Key Points
Pfizer has a rich pipeline of drugs in development, at least some of which are likely to sell well.
UPS has turned away from Amazon.com and toward more profitable deliveries.
The Schwab U.S. Dividend Equity ETF offers both dividend income and growth.
If you want to be a savvy investor, you should know what this table is telling you:
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 »
Average Annual Total Return, 1973-2025
Dividend growers and initiators
10.22%
Dividend payers
9.20%
No change in dividend policy
6.87%
Dividend non-payers
4.21%
Dividend shrinkers and eliminators
(0.96%)
Equal-weighted S&P 500 index
7.74%
As it starkly shows, it's hard to beat healthy and growing dividend-paying stocks if you're looking to boost your wealth over time. Here, then, are three to consider.
1. Pfizer
Let's start with pharmaceutical giant Pfizer (NYSE: PFE). It's a compelling dividend payer largely because of its dividend yield -- recently a fat 6.7%. That payout is hefty in large part because the stock has averaged annual losses of about 7% over the past three years. (It's up 17% over the past year, though, as of June 4.) When a stock's price falls, its dividend yield rises, so many high-yielders have been facing some kind of struggle.
A key challenge for Pfizer has been the patent protection expiration of some of its biggest sellers. That's an issue for every pharmaceutical company, and one which they typically tackle by having a pipeline filled with promising drugs in development -- and/or by acquiring such promising drugs from other companies. Pfizer is doing both.
Pfizer's shares seem undervalued, too, with a recent forward P/E ratio of 9.0, well below the five-year average of 9.7.
2. United Parcel Service (UPS)
United Parcel Service (NYSE: UPS) is another stock with a massive dividend yield, recently 7.7%. It, too, has posted average annual losses over the past three years, 8.6%. But as with Pfizer, there's a lot to like about UPS.
Detractors are wringing their hands over UPS's decision to cut back on the deliveries it makes for Amazon.com (NASDAQ: AMZN), but that's far from a death knell. Others see that as a smart move, because that arrangement has largely been a low-profit-margin one for UPS. The company is now focusing more on serving higher-margin customers, such as small and medium-sized businesses and the healthcare sector.
UPS' first-quarter report featured overall domestic revenue down 2.3%, while revenue per package grew 6.5%. Internationally, revenue rose by 3.8%, with revenue per package popping by 12.1%. The company's shares seem reasonably valued, with a recent forward P/E ratio of 14, a bit below the five-year average of 15. Long-term believers in the UPS plan will be paid handsomely while they wait.
3. Schwab U.S. Dividend Equity ETF
My last suggestion is not exactly a stock. It's an exchange-traded fund (ETF) that trades like a stock. It's the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD), which recently yielded a solid 3.25% and parks investors' money across roughly 100 dividend payers such as Qualcomm (NASDAQ: QCOM), Texas Instruments (NASDAQ: TXN), and UnitedHealth Group (NYSE: UNH). (UPS shares were among its top 30 holdings recently, too.)
The ETF offers a compelling mix of both income and growth -- indeed, it was up nearly 20% year to date as of June 4. It's a good choice instead of investing in individual dividend payers on your own or in addition to doing so.
Should you buy stock in Pfizer right now?
Before you buy stock in Pfizer, 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 Pfizer 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 $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 7, 2026.
Selena Maranjian has positions in Amazon, Pfizer, and Schwab U.S. Dividend Equity ETF. The Motley Fool has positions in and recommends Amazon, Pfizer, Qualcomm, Texas Instruments, and United Parcel Service. 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.

3 Dividend Stocks to Buy Hand Over Fist in June

Key Points
This ETF's dividend yield was recently a solid 3.25%, about three times that of the S&P 500.
Its growth rate has been better than that of many dividend-focused funds.
It seems poised to hold up better than some other funds in a market downturn.
As I do now and then, I'm here to recommend an exchange-traded fund (ETF) for your consideration. (Remember that ETFs are funds that trade like stocks.) Specifically, one that's focused on dividend-paying stocks. There are many such ETFs to choose from, but it's hard for me to recommend any other one than the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD).
Here's a look at why I like it so much.
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 glorious mix of income and growth
With dividend-focused ETFs, there's generally a trade-off between dividend income and growth. The highest-yielding ETFs tend to grow more slowly, and vice versa. The Schwab U.S. Dividend Equity ETF, though, is strong on both counts.
Its dividend yield is 3.25% (as of June 3); a look at its recent performance follows. I'm including the performance of the Vanguard S&P 500 ETF (NYSEMKT: VOO), which recently yielded merely 1.1%, too, for comparison.
Fund
3-Year Avg. Annual Return
5-Year Avg. Annual Return
10-Year Avg. Annual Return
Schwab U.S. Dividend Equity ETF
15.09%
8.50%
12.78%
Vanguard S&P 500 ETF
22.44%
14.10%
15.56%
Data source: Morningstar.com, as of June 3, 2026.
You can see that the Schwab fund, up 19% year to date, delivers less growth than the S&P 500, but not that much less, especially when compared with many other dividend-focused ETFs. Also, it kicks out almost three times the dividend income as the S&P 500.
Meanwhile, its expense ratio -- i.e., its annual fee -- is also compelling, at a mere 0.06%. That means that for every $10,000 you have invested in the fund, you'll pay only $6.
The Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index, which encompasses 100 stocks with a track record of paying dividends for at least 10 years. The index also demands that its components appear financially healthy, gauging factors such as cash flow to total debt and return on equity. That requirement can help it perform well, as companies on shakier financial ground may have to reduce or even suspend their dividend payments should they run into trouble.
Also, healthy and growing dividend-paying stocks tend to increase their payouts over time, which will benefit shareholders.
What's in the Schwab U.S. Dividend Equity ETF?
Here are the top 10 holdings as of June 2, along with their weighting in the fund and their recent dividend yield:
Stock
Weight in ETF
Recent Yield
Qualcomm
6.21%
1.47%
Texas Instruments
5.72%
1.84%
UnitedHealth Group
5.14%
2.46%
Coca-Cola
3.98%
2.69%
Chevron
3.95%
3.75%
Merck
3.78%
2.96%
Verizon Communications
3.68%
6.07%
ConocoPhillips
3.60%
2.82%
Procter & Gamble
3.50%
3.04%
Amgen
3.43%
2.98%
Data source: Morningstar.com, as of June 2, 2026.
These 10 holdings together make up about 43% of the ETF's value. About 18% of its assets are in consumer defensive stocks, 15% in energy stocks, and 18% in healthcare stocks. That kind of mix is appealing to me because I think there's a significant chance of a market pullback in the coming year or two. If that happens, those three sectors are likely to hold their value more than some others.
So give this dividend-focused ETF some consideration for your long-term stock portfolio, especially if you seek growth and income.
Should you buy stock in Schwab U.S. Dividend Equity ETF right now?
Before you buy stock in Schwab U.S. Dividend Equity ETF, 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 Schwab U.S. Dividend Equity ETF 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 $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 6, 2026.
Selena Maranjian has positions in Amgen, Procter & Gamble, Schwab U.S. Dividend Equity ETF, and Verizon Communications. The Motley Fool has positions in and recommends Amgen, Chevron, Merck, Qualcomm, Texas Instruments, and Vanguard S&P 500 ETF. The Motley Fool recommends ConocoPhillips, UnitedHealth Group, and Verizon Communications. 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.