Workflow
The worst is behind CVS expect tailwinds ahead, says Raymond James' John Ransom
CNBC Televisionยท2025-08-04 16:27

Market Valuation & Investment Opportunity - Health insurers are largely trading at six times their estimated 2028 EPS, except for UnitedHealth, which is trading closer to ten times, suggesting a potential buying opportunity given the perceived undervaluation [1][2] - The market has priced in the problems faced by these businesses, such as mispricing Medicare Advantage and healthcare exchanges, into their valuations [2] Company-Specific Performance - CVS has shown improvement with two consecutive quarters of beating numbers in its core insurance segment and anticipates tailwinds next year [3] - Cigna is performing inline, and Alignment Healthcare, specializing in Medicare Advantage, is also doing well; Humana is meeting its targets for the year [3] - UnitedHealth is experiencing widespread problems, particularly in Medicaid and exchange fundamentals, while Centene and Molina have also faced challenges in these segments [4] Timing of Challenges - CVS faced significant challenges in 2024, while UnitedHealth's problems emerged in 2025, indicating varying timelines for when these companies encountered difficulties [5]