UnitedHealth (UNH) Moves 5.4% Higher: Will This Strength Last?

Core Insights - UnitedHealth Group (UNH) shares increased by 5.4% to close at $553.08, with significant trading volume, reflecting a 9.3% gain over the past four weeks [1][2] Group 1: Medicare Advantage Payment Rates - The U.S. government raised Medicare Advantage payment rates by 5.06% for 2026, more than double the initially proposed 2.23% increase, expected to inject over $25 billion into the sector [2] Group 2: Earnings and Revenue Expectations - UnitedHealth is projected to report quarterly earnings of $7.27 per share, a year-over-year increase of 5.2%, with revenues expected to reach $111.01 billion, up 11.2% from the previous year [3] - The consensus EPS estimate for UnitedHealth has remained unchanged over the last 30 days, indicating that stock price movements may be influenced by trends in earnings estimate revisions [4] Group 3: Industry Comparison - UnitedHealth holds a Zacks Rank of 2 (Buy), while competitor Cigna (CI) has a Zacks Rank of 4 (Sell) and is expected to report an EPS of $6.41, reflecting a decline of 0.9% year-over-year [4][5]