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 remains a large and profitable business, but the current valuation already reflects a significant portion of its quality. In terms of revenue, the company looks very large and stable: around $112 billion TTM, with overall performance over recent periods remaining fairly steady, showing no signs of a sharp deterioration. Earnings and operating income remain strong in absolute terms, and TTM EPS of 6.38 confirms the company’s ability to generate substantial earnings per share. However, profitability is noticeably weaker than the industry median: ROE, ROA, ROI, net and operating margins, as well as gross margin, are all below benchmarks, which limits the potential for revaluation. It is especially important that margin performance in recent periods has not shown a sustained acceleration and in some cases looks worse than at earlier dates. From a multiples perspective, the picture is mixed: P/E and P/B are above the industry median, indicating a valuation premium, while P/S and P/FCF look more restrained and partially offset this effect. The debt burden is not critical, but debt/equity is above the industry median, and the current ratio and quick ratio are weak, which adds caution to the assessment of liquidity. At the same time, absolute capital and shareholders’ equity are very large, and long-term debt has not been growing aggressively over the period, which softens the risk profile. Dividend yield of around 0.6% remains low and is not a strong factor supporting the share price. Overall, the fundamentals point to a high-quality but no longer cheap company with a stable scale, moderate growth, and limited room for multiple expansion. Therefore, a moderate conservative downward adjustment is appropriate rather than a deep revision of the forecast.

UnitedHealth Group Incorporated

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, незначительно упал. Рынок не поддерживает быков.

Strong index, slightly down. The market does not support the bulls.

Сильный индекс, без изменений. Отток средств из лонгов на высоком уровне.

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

UNH remains a profitable and large-scale business, but weak margins, a high P/E and P/B valuation, and low liquidity are limiting the upside.

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

Stocks Sharply Lower on Inflation Woes and Slumping Chipmakers

In early trading on Wednesday, shares of Honeywell International topped the list of the day's best performing components of the S&P 500 index, trading up 7.5%. Year to date, Honeywell International registers a 42.2% gain.
And the worst performing S&P 500 component thus far on the day is Progressive, trading down 9.1%. Progressive is lower by about 11.0% looking at the year to date performance.
Two other components making moves today are Dell Technologies, trading down 7.4%, and UnitedHealth Group, trading up 3.5% on the day.

S&P 500 Movers: PGR, HONIV

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UnitedHealth (UNH) Q3 2026 Earnings Call Transcript

Healthcare giants UnitedHealth Group UNH) and Johnson & Johnson JNJ) reported Q3 results on Tuesday, with both raising their full-year earnings outlooks but delivering contrasting reports.
While UnitedHealth's stronger-than-expected results highlighted improving medical cost management and a potential earnings recovery, Johnson & Johnson's growth in pharmaceuticals was tempered by weakness in its medical technology business.
With both healthcare leaders offering attractive dividend income, let's examine which stock presents the better investment opportunity following Q3 earnings.
UnitedHealth's Q3 Earnings Signal a Recovery
UnitedHealth reported adjusted Q3 earnings of $4.69 per share, beating the Zacks Consensus Estimate of $4.12 by nearly 14% and jumping 60% from EPS of $2.92 a year ago. Revenue reached $112.69 billion, exceeding expectations by 1% despite dipping from $113.16 billion in the prior-year quarter.
Encouragingly, UnitedHealth's medical cost ratio improved to 88.4% from 89.9% a year earlier, reflecting stronger medical cost management and pricing discipline that helped drive its impressive earnings growth.
Management raised its full-year adjusted EPS outlook to at least $20.50, representing 25% year-over-year growth and reinforcing optimism about improving profitability. Most importantly, the updated EPS guidance came in above Wall Street’s forecast of $19.85 per share.
This comes despite ongoing Medicare Advantage reimbursement pressures and challenges within its Optum business, which provides pharmacy benefits, healthcare services, and technology solutions.
Image Source: Zacks Investment Research
Johnson & Johnson's Q3 Results Highlight Mixed Momentum
Johnson & Johnson posted adjusted Q3 earnings of $2.59 per share, topping the Zacks EPS Consensus of $2.53 by 2%. That said, earnings declined 7.5% YoY, while revenue increased 6% to $25.4 billion, but narrowly missed estimates.
The company's Innovative Medicine division remained a bright spot, with sales climbing 7.7%, supported by strong demand for key pharmaceutical products. However, J&J's MedTech division, which specializes in cardiovascular devices, orthopedic implants, surgical equipment, and vision care products, saw revenue increase just 2.5% to $8.64 billion, falling short of expectations.
Despite these challenges, J&J raised its 2026 adjusted EPS guidance to $11.05-$11.15, up from its prior outlook of $10.96-$11.11 and representing more than 2% annual growth. Additionally, J&J expects annual revenue to reach $101.2 billion, representing 7% YoY growth.
Still, the updated EPS outlook came in slightly below the Street’s current forecast of $11.16.
Image Source: Zacks Investment Research
Performance & Valuation Comparison
Johnson & Johnson has been the stronger performer in 2026, with shares up more than 20% year-to-date when including dividends compared with UnitedHealth's roughly 17% advance.
Over the last three years, JNJ’s total return of 70% has trailed the broader market but has significantly outpaced the Zacks Medical Sector’s 9% gain. Meanwhile, UNH is still down 25% in the last three years, amid elevated medical costs, regulatory and policy headwinds, margin compression, and concerns over future profitability.
Image Source: Zacks Investment Research
However, UnitedHealth offers a more appealing valuation, with UNH trading around 19X forward earnings, compared with JNJ's 23X. Both stocks trade at discounts to the Zacks Medical Sector’s 25X, but UNH certainly offers greater value, especially if its earnings recovery continues.
Image Source: Zacks Investment Research
Dividend Comparison
UnitedHealth currently pays a quarterly dividend of $2.32 per share, representing an annualized payout of $9.28 and a yield of approximately 2.45%.
Johnson & Johnson offers an annualized dividend of $5.36 per share, yielding roughly 2%. Notably, JNJ has increased its dividend for 64 consecutive years, making it a Dividend King and an attractive long-term income holding.
Although Johnson & Johnson has a more established dividend-growth history, UnitedHealth has increased its dividend for 16 consecutive years and offers the higher yield.
Image Source: Zacks Investment Research
Bottom Line: UNH Is the Better Buy After Q3 Earnings
UnitedHealth's stronger earnings momentum, improving medical cost management, more reasonable valuation, and slightly higher dividend yield make it the more compelling healthcare investment following Q3 earnings.
Keeping that in mind, UNH currently sports a Zacks Rank #2 (Buy), supported by a trend of positive earnings estimate revisions. In contrast, JNJ lands a Zacks Rank #4 (Sell) as earnings estimates have declined despite the company's solid long-term fundamentals.
Considering JNJ's impressive YTD gains and relatively premium valuation, this could be an ideal time for investors to take profits and consider UNH's improving outlook and rebound potential.
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UnitedHealth vs. Johnson & Johnson: Which Stock Is the Better Buy After Q3 Earnings?

(RTTNews) - Unitedhealth Group, Inc. (UNH) will host a conference call at 8:00 AM ET on October 13, 2026, to discuss Q3 26 earnings results.
To access the live webcast, log on to https://www.unitedhealthgroup.com/investors.html

Unitedhealth Group Q3 26 Earnings Conference Call At 8:00 AM ET

The following companies are expected to report earnings prior to market open on 10/13/2026. Visit our Earnings Calendar for a full list of expected earnings releases.
J P Morgan Chase & Co (JPM)is reporting for the quarter ending September 30, 2026. The investment bankers company's consensus earnings per share forecast from the 6 analysts that follow the stock is $5.94. This value represents a 17.16% increase compared to the same quarter last year. In the past year JPM has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 9.84%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for JPM is 13.78 vs. an industry ratio of 16.00.
Johnson & Johnson (JNJ)is reporting for the quarter ending September 30, 2026. The large cap pharmaceutical company's consensus earnings per share forecast from the 5 analysts that follow the stock is $2.53. This value represents a 9.64% decrease compared to the same quarter last year. In the past year JNJ has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 2.11%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for JNJ is 23.38 vs. an industry ratio of 19.20, implying that they will have a higher earnings growth than their competitors in the same industry.
UnitedHealth Group Incorporated (UNH)is reporting for the quarter ending September 30, 2026. The hmo company's consensus earnings per share forecast from the 8 analysts that follow the stock is $4.12. This value represents a 41.10% increase compared to the same quarter last year. In the past year UNH has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 29.15%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for UNH is 19.11 vs. an industry ratio of 21.20.
The Goldman Sachs Group, Inc. (GS)is reporting for the quarter ending September 30, 2026. The investment bankers company's consensus earnings per share forecast from the 7 analysts that follow the stock is $12.90. This value represents a 5.31% increase compared to the same quarter last year. In the past year GS has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 44.99%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for GS is 13.27 vs. an industry ratio of 16.00.
Wells Fargo & Company (WFC)is reporting for the quarter ending September 30, 2026. The investment bankers company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.85. This value represents a 6.94% increase compared to the same quarter last year. WFC missed the consensus earnings per share in the 1st calendar quarter of 2026 by -1.27%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for WFC is 11.49 vs. an industry ratio of 16.00.
Citigroup Inc. (C)is reporting for the quarter ending September 30, 2026. The investment bankers company's consensus earnings per share forecast from the 7 analysts that follow the stock is $2.66. This value represents a 18.75% increase compared to the same quarter last year. In the past year C has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 15.81%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for C is 11.59 vs. an industry ratio of 16.00.
Domino's Pizza Inc (DPZ)is reporting for the quarter ending September 30, 2026. The restaurant company's consensus earnings per share forecast from the 9 analysts that follow the stock is $4.33. This value represents a 6.13% increase compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for DPZ is 16.33 vs. an industry ratio of 3.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Albertsons Companies, Inc. (ACI)is reporting for the quarter ending August 31, 2026. The consumer company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.31. This value represents a 26.19% decrease compared to the same quarter last year. ACI missed the consensus earnings per share in the 2nd calendar quarter of 2026 by -28.85%. Zacks Investment Research reports that the 2027 Price to Earnings ratio for ACI is 7.39 vs. an industry ratio of 17.40.
FB Financial Corporation (FBK)is reporting for the quarter ending September 30, 2026. The bank (northeast) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.21. This value represents a 13.08% increase compared to the same quarter last year. FBK missed the consensus earnings per share in the 1st calendar quarter of 2026 by -0.88%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for FBK is 11.27 vs. an industry ratio of 10.90, implying that they will have a higher earnings growth than their competitors in the same industry.

Pre-Market Earnings Report for October 13, 2026 : JPM, JNJ, UNH, GS, WFC, C, DPZ, ACI, FBK

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

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

The S&P 500 Index ($SPX) (SPY) is up by +0.26% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.21%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.31%. December E-mini S&P futures (ESZ26) are up +0.20%, and December E-mini Nasdaq futures (NQZ26) are up +0.16%.
Stock indexes are moving higher today, supported by lower crude oil prices. WTI crude oil is down nearly -1% today as Middle East tensions eased after President Trump said the US would not attack Iran before the midterm elections.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Also, concerns about slowing demand for AI-infrastructure stocks eased today after people familiar with the matter said OpenAI is expecting to reach or exceed $70 billion in annualized revenue by the end of the year, refuting a report from the Financial Times on Thursday that said OpenAI is on track to generate annualized revenue of roughly $50 billion based on its current performance.
Earnings optimism is a bullish factor for stock prices. According to data compiled by Bloomberg Intelligence, Q3 S&P 500 profits are expected to climb by +25% from a year earlier, up from a July estimate of 22%. Q3 earnings season begins next week when US money center banks report.
Nov WTI crude oil prices (CLX26) are down nearly -1% today after President Trump said the US would not attack Iran ahead of next month’s midterm elections, citing “productive discussions” with Iran. Losses in crude may be limited today as signs point to lower US crude output and threats to refining capacity. Roughly 1.28 million bpd of crude output, or 63% of US Gulf crude production, has been shut in, and Hurricane Isaias is expected to make landfall along the Gulf Coast later today or tomorrow, threatening 500,000 bpd of refining capacity. Also, due to Iranian attacks on shipping in the Strait of Hormuz, the cost to ship oil out of the Middle East is soaring, with freight rates from the Middle East to China jumping to $1.4 million a day, the most on record.
Markets are discounting a 19% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 is up +1.18%. China's Shanghai Composite recovered from a 2.5-month low and closed up +0.05%. Japan's Nikkei-225 Stock Average closed down -0.02%.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -7 ticks today. The 10-year T-note yield is up +3.0 bp to 5.257%. T-notes are under pressure today from stronger stocks, which curbs safe-haven demand for government debt. T-note losses are limited today, with WTI crude oil prices down nearly -1%, easing inflation expectations.
European government bond yields are moving lower today. The 10-year German bund yield is down -2.6 bp to 3.469%. The 10-year UK gilt yield is down -5.2 bp to 5.429%.
Italy's Aug industrial production fell -1.3% m/m, weaker than expectations of no change and the biggest decline in a year.
Markets are discounting a 11% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Optical-equipment makers are rallying today after Lumentum Holdings said its components are “completely sold out” through 2029 on high demand from tech companies clamoring for faster AI data centers. Applied Optoelectronics (AAOI) is up more than +9%, and Coherent (COHR) is up more than +8%. Also, Lumentum Holdings (LITE) is up more than +6% to lead gainers in the Nasdaq 100, and Fabrinet (FN) is up more than +3%.
Tower companies are gaining today after SpaceX said it had agreed to acquire a nationwide low-band spectrum license portfolio in a deal analysts say is a positive catalyst for the sector. Crown Castle (CCI) is up more than +11%, and American Tower (AMT) and SBA Communications (SBAC) are up more than -7%.
Humana (HUM) is up more than +14% to lead gainers in the S&P 500 and health insurance stocks higher after data from the Centers for Medicare and Medicaid Services showed improved ratings for the company’s Medicare Advantage contract, allowing it to earn bonus payments. Also, UnitedHealth Group (UNH) is up more than +3% to lead gainers in the Dow Jones Industrials, and Elevance Health (ELV) and Centene (CNC) are up more than +2%. In addition, Molina Healthcare (MOH), and the Cigna Group (CI) are up more than +1%.
Telecom stocks are retreating today after SpaceX said it had agreed to acquire a nationwide low-band spectrum license portfolio, which will increase competition from satellite operators. T-Mobile US (TMUS) is down more than -9% to lead losers in the S&P 500 and Nasdaq 100. Also, AT&T (T) is down more than -7%, and Verizon Communications (VZ) is down more than -6%. In addition, Charter Communications (CHTR) is down more than -3%, and Comcast (CMCSA) is down more than -1%.
Delta Air Lines (DAL) is down more than -3% to lead airline stocks lower after cutting its full-year adjusted EPS forecast to $5.10 to $5.60 from a previous estimate of $6.50 to $7.50, the midpoint below the consensus of $5.44. Also, American Airlines Group (AAL), United Airlines Holdings (UAL), and Alaska Air Group (ALK) are down more than -2%, and Southwest Airlines (LUV) is down more than -1%.
Fastly (FSLY) is up more than +6% after Oppenheimer upgraded the stock to outperform from perform, with a price target of $35.
Cboe Global Markets (CBOE) is up more than +3% after Morgan Stanley double-upgraded the stock to overweight from underweight, with a price target of $358.
Apple (AAPL) is down more than -2% to lead losers in the Dow Jones Industrials after cutting component orders for the iPhone 18 Pro and iPhone 18 Pro Max following weaker-than-expected demand. Skyworks Solutions (SWKS), a supplier of Apple, also dropped -6% on the news.
Earnings Reports (10/9/2026)
Delta Air Lines Inc (DAL), Hingham Institution For Savings (HIFS), Nurix Therapeutics Inc (NRIX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Stocks Push Higher as Crude Oil Prices Ease

Key Points
American Express is the last remaining credit card stock in Berkshire's portfolio.
The New York Times Company is bucking the trend of the struggling newspaper industry.
DaVita specializes in treating kidney disease and providing dialysis services.
One of the secrets of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) and its success in the stock market has been its focus on value. Whether led by former Chief Executive Officer Warren Buffett or its current leader, Greg Abel, Berkshire has always focused on buying stocks when they are significantly below their intrinsic value.
On top of that, Berkshire's management team has sought companies that have significant advantages over their competitors -- an economic moat -- operating in a mature industry with reliable cash flow.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
That strategy has helped Berkshire Hathaway build an investment portfolio valued at about $350 billion -- and generate returns that averaged 19.7% during the past 60 years, nearly double the S&P 500's (SNPINDEX: ^GSPC) return.
In today's go-go market, which is focused so heavily on artificial intelligence, machine learning, and other technological advances, it's easy to forget that there are some great value stocks available -- and at comparatively dirt cheap prices. Three such stocks currently in Berkshire's portfolio are American Express (NYSE: AXP), The New York Times Company (NYSE: NYT), and DaVita (NYSE: DVA). Here's the case for buying and holding each of them right now.
Berkshire Hathaway stock No. 1: American Express
Berkshire Hathaway is deeply ingrained in the financial community. Its holdings include a significant stake in publicly traded companies such as Bank of America and Moody's, and it wholly owns several insurance companies, including GEICO. Until last year, it had stakes in American Express, Mastercard, and Visa.
But I've always believed that of the three, American Express is the superior stock. Apparently, Abel feels the same way, as he closed out Berkshire's positions in Mastercard and Visa in the first quarter.
I like American Express because of its market position -- it's geared toward more affluent customers with its gold and platinum card programs, both of which charge hefty annual fees. American Express increased its annual fee for its Platinum card to a whopping $895 earlier this year and offers perks valued at $3,500 to cardholders.
"Our platinum portfolio is now the fastest growing in our U.S. Consumer business; our best-in-class credit performance further strengthened; and we continued to attract a large number of new customers, particularly millennials and Gen Zs who represent greater lifetime value," CEO Stephen Squeri said.
Revenue in the second quarter was $19.6 billion, up 10% from a year ago, and net income of $3.11 billion was up 8%.
American Express is one of Berkshire's largest holdings, with 151.6 million shares, representing 13% of the company's portfolio. However, American Express stock is down 18% so far this year and currently sits 21% off its all-time high. But it's still my favorite financial stock in Berkshire's portfolio.
Berkshire Hathaway stock No. 2: The New York Times Company
We've all heard it: Newspapers are in trouble, and many have shut down -- about 3,500 in the U.S. alone, according to a Poynter study. The industry largely hasn't kept pace with the growth of digital media, losing both advertisers and subscribers.
But The New York Times has been able to buck that trend, embracing digital and capitalizing on its global brand. The company's newspaper had 13.35 million subscribers in the second quarter, with only 550,000 receiving printed copies.
Second-quarter revenue rose 11% from a year earlier to $762.5 million. And even though print advertising continued to decline, falling from $40 million to $35 million in a year, the company recorded a 21% gain in digital ads, bringing total ad revenue to $149 million, up from $134 million a year ago.
The company is a classic example of what Buffett and Abel appreciate: a well-run company with an economic moat that ensures long-term success. The shares are down 8% so far this year and 20% from their all-time highs.
Berkshire Hathaway stock No. 3: DaVita
Interestingly, Berkshire doesn't own many healthcare companies. It took a sizable share in UnitedHealth Group in the second quarter of 2025 before selling it less than a year later. And its Berkshire Hathaway Life company offers health reinsurance but not direct-to-consumer health coverage.
So DaVita holds a unique position in the Berkshire universe. The company focuses on kidney disease and chronic kidney failure, providing dialysis services and care, lab services, and research.
And that's an important field, particularly as the National Kidney Foundation estimates that 35.5 million U.S. adults have kidney disease, and one-third of adults are at risk from the disease.
Second quarter revenue rose to $3.55 billion, up from $3.20 billion a year ago. Net income was $343.2 million, up from $275.2 million in the second quarter of 2025, and diluted earnings per share were $4.02, up from $2.58 per share.
Unlike the other two companies on this list, DaVita is having a very good year, up 58%, but it's still 27% off its all-time highs.
Should you buy stock in American Express right now?
Before you buy stock in American Express, 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 American Express 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 $361,650!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,437,517!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% 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 October 6, 2026.
Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, Berkshire Hathaway, Mastercard, Moody's, The New York Times Co., and Visa. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.

3 Berkshire Hathaway Holdings to Buy While They Sit at Least 15% Below Their Highs

Key Points
Pfizer is getting back on its feet after a difficult post-pandemic stretch.
Bristol Myers Squibb faces a patent cliff that management is well equipped to navigate.
UnitedHealth Group continues to grow despite a laundry list of problems that would sink many other companies.
The market has not been kind to healthcare stocks during the past couple of years. Patent cliffs, politics, and soaring medical costs have weighed on investors' minds, as well as the share prices of several prominent industry stalwarts.
But is healthcare realistically an industry in decline? Probably not. It is one of the largest and most critical industries in the U.S., with total healthcare spending totaling nearly $15,000 per capita. That's the highest among the world's developed countries.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
This means that some excellent dividend-paying healthcare stocks could be trading at bargain prices that investors may want to jump on before the end of October.
1. Pfizer
Pharmaceutical maker Pfizer (NYSE: PFE) enjoyed a huge windfall from the COVID-19 vaccine. But it has become a value stock during the past several years.
Vaccine sales dried up, sending the company's top and bottom lines reeling. Today, Pfizer trades at just over 9 times this year's earnings estimates, and the stock yields a hefty 6%.
High yields are typically risky. Fortunately, this dividend seems sustainable. Although it consumes nearly 90% of the company's cash profits right now, management continues to affirm its commitment to maintaining the payout. It also has $11.7 billion in cash and short-term investments to plug any near-term gaps.
Eventually, Pfizer will need to grow to give that dividend some breathing room. It has an ambitious pipeline with 95 candidates in total, including 31 in phase 3 clinical trials.
Analysts estimate that the company's earnings will increase by an average of 5% annually during the next three to five years. That should sustain the dividend -- and perhaps even eke out more increases.
2. Bristol Myers Squibb
Pfizer isn't the only pharma maker that's struggling. Bristol Myers Squibb (NYSE: BMY) has had a rough go, although for different reasons.
The company's main problem is a steep patent cliff, with Eliquis and Opdivo losing U.S. exclusivity in 2028. These drugs accounted for roughly half of all sales last year, so that's a powerful looming headwind for growth.
The company has a robust portfolio of fast-growing drugs, as well as promising developmental candidates, so there's a strong chance the business will be fine as older drugs fade and hand off the baton to these up-and-coming therapies. Still, the concerns have weighed on the stock.
Bristol Myers Squibb trades at only 9 times this year's earnings estimates and yields 4%. The dividend is still just 44% of the company's cash profits, so unless management falls drastically short of filling that revenue hole in 2028, the stock looks like a strong income producer at a compelling price.
3. UnitedHealth Group
Health insurance and services provider UnitedHealth Group (NYSE: UNH) is a central cog in U.S. healthcare. The company has also been a political lightning rod, which only intensified after the slaying of one of its executives in 2024, as well as lawsuits and investigations regarding its business practices.
If that weren't enough, surging Medicare costs have squeezed margins. Yep, it's been a tough stretch for the stock.
But after a prolonged slump, it has rallied throughout 2026. Even after its run, the shares still trade at only 19 times 2026 earnings estimates and yield 2.5%. That payout is much higher than the stock's historical norms. That's often a warning sign, but the company's cash profits still easily cover the dividend.
It's difficult to slow the U.S. healthcare machine. UnitedHealth continues to prove that it's a very resilient company, and now things are looking up once again.
Analysts see UnitedHealth Group's earnings increasing by more than 13% annually during the next three to five years. That growth makes the stock a no-brainer at its current price.
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 $361,650!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,437,517!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — 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 October 4, 2026.
Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb and Pfizer. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

UnitedHealth Group Incorporated

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