Core Insights - UnitedHealth Group (NYSE: UNH) is currently facing challenges in stock pricing and rating assignment due to its previously resilient business model now being tested [1] Company Analysis - The company is recognized for its solid business model, which has historically shown resilience in the market [1] - There is a potential for the company to be undervalued, indicating growth opportunities that may be explored by investors [1]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased common stock of Elevance Health, Inc. during the specified Class Period of the upcoming lead plaintiff deadline for a class action lawsuit [1][2]. Group 1: Class Action Details - The Class Period for the Elevance Health, Inc. stock purchase is from April 18, 2024, to October 16, 2024 [1]. - Investors may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [1]. - A lead plaintiff must file a motion with the Court by July 11, 2025, to represent other class members in the litigation [2]. Group 2: Legal Representation - Investors are encouraged to select qualified legal counsel with a proven track record in securities class actions [3]. - Rosen Law Firm has a history of successful settlements, including the largest securities class action settlement against a Chinese company at the time [3]. - The firm has consistently ranked in the top for securities class action settlements and has recovered hundreds of millions of dollars for investors [3]. Group 3: Case Allegations - The lawsuit alleges that Elevance Health made false or misleading statements regarding the Medicaid redetermination process and its impact on financial guidance [4]. - It is claimed that the acuity and utilization of Medicaid members increased significantly, contrary to the company's assurances to investors [4]. - The misrepresentation of the situation led to investor damages when the true details became public [4].

Core Viewpoint - A lawsuit has been filed against Elevance Health, Inc. and certain senior executives for potential violations of federal securities laws, specifically related to the management of Medicaid benefits during the COVID-19 pandemic [1][2]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Southern District of Indiana, captioned Miller v. Elevance Health, Inc., et al., No. 25-cv-0092 [2]. - Investors who purchased Elevance common stock are encouraged to seek additional information and may request to be appointed to lead the case by July 11, 2025 [2]. Group 2: Background on Medicaid Management - Elevance provides health insurance plans, including contracts with states to administer Medicaid benefits [3]. - The federal government paused the review of Medicaid eligibility during COVID, which resumed in 2023, leading to increased acuity and utilization among Elevance's Medicaid members [3][5]. Group 3: Financial Impact and Stock Performance - Elevance had previously stated it was monitoring cost trends related to Medicaid redetermination, but the actual increase in acuity and utilization was not reflected in its financial guidance for 2024 [4][5]. - Following announcements of increased utilization and missed earnings expectations, Elevance's stock price declined significantly: a drop of $32.21 per share (nearly 6%) on July 17, 2024, and a further decline of $52.61 per share (nearly 11%) on October 17, 2024 [6][7].

CANADA - 2025/04/06: In this photo illustration, the Centene Corporation logo is seen displayed on a ... More smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesCentene Corporation (NYSE:CNC) experienced a challenging Tuesday evening, witnessing a 25% drop in shares during after-hours trading on July 1st. The significant decline in the healthcare giant's stock wasn’t merely another example of market fluctuations; it was di ...

Core Viewpoint - Centene's shares have dropped over 20% after the company withdrew its full-year financial guidance, raising concerns about rising costs in the health insurance sector [1][6]. Group 1: Financial Performance - Centene has lowered its 2025 earnings forecast by $1.8 billion, now expecting earnings of approximately $2.75 per share, significantly below Wall Street's consensus of $7.28 [3][4]. - The downgrade is attributed to unexpectedly high Medicaid costs, particularly in behavioral health services and expensive prescription drugs [3][4]. - Despite the challenges, Centene reported strong performance in its Medicare Advantage and Medicare Prescription Drug Plan businesses [4][5]. Group 2: Market Reaction - In pre-market trading, Centene's stock fell as much as 26% to $41.57, following a previous close of $56.65, where shares had gained 4.3% in the prior session [1][3]. - The market largely reacted negatively to the steep earnings cut, overshadowing the company's continued discipline in SG&A expenses that helped sustain revenue leverage [5]. Group 3: Industry Context - Centene's situation mirrors recent issues faced by UnitedHealth, which also withdrew its 2025 outlook due to a significant earnings miss related to surging Medicare Advantage claims [6][7]. - UnitedHealth's stock dropped over 20% following its earnings miss, marking its worst single-day performance in over two decades, compounded by concerns about leadership changes and transparency [7].

Company Overview - UnitedHealth Group (NYSE: UNH) is a large, multinational health care and well-being company with two primary divisions: UnitedHealthcare and Optum [1] - UnitedHealthcare focuses on health insurance plans, while Optum manages various health services, including medical research, pharmacy care, and technology development in healthcare [1] Analyst Background - LW Research is run by a qualified accountant with experience in financial services, including private equity, hedge funds, asset management, and venture capital [1] - The analyst has developed expertise in analyzing financials, assessing risks, and identifying opportunities across a wide range of companies [1]

Core Viewpoint - Centene has withdrawn its 2025 guidance due to lower-than-expected market growth in over 20 states, impacting its risk adjustment revenue expectations significantly [2][3]. Group 1: Market Analysis - An independent actuarial firm's analysis indicated that the overall market growth in 22 states where Centene operates is lower than anticipated, with morbidity levels being significantly higher than the company's previous assumptions [3]. - The analysis covers 22 of the 29 states where Centene sells individual coverage, representing approximately 72% of the company's marketplace membership [3]. Group 2: Financial Impact - Centene's preliminary analysis suggests a reduction in its full-year net risk adjustment revenue transfer expectation by about $1.8 billion, which translates to an adjusted diluted EPS impact of approximately $2.75 [4]. - The estimate is based on paid claims data through April 30, 2025, and includes projections for the remaining eight months of the year [4]. Group 3: Enrollment Trends - Centene's enrollment in Obamacare increased by 29% to 5.6 million members in the first quarter of the year, up from 4.3 million a year ago, despite a decrease of over 330,000 enrollees in Medicaid coverage [4]. Group 4: Legislative Context - The announcement coincides with the U.S. Senate passing a budget bill that could lead to 11 million Americans losing health insurance coverage, primarily affecting those enrolled in Obamacare and Medicaid, which Centene administers [5]. Group 5: Future Reporting - Centene is currently closing its second quarter and analyzing data, with plans to report its second quarter 2025 results and provide further insights on July 25 [6].

Core Viewpoint - Centene Corporation has withdrawn its previous 2025 GAAP and adjusted diluted earnings per share (EPS) guidance due to lower-than-expected market growth and higher morbidity rates in the Health Insurance Marketplace [1][3]. Group 1: Financial Guidance and Market Analysis - The company analyzed 2025 Marketplace data from Wakely, covering 22 of its 29 states, which represents approximately 72% of its Marketplace membership [2]. - The preliminary analysis indicates a reduction in the full year net risk adjustment revenue transfer expectation by approximately $1.8 billion, leading to an adjusted diluted EPS impact of about $2.75 [4]. - The company anticipates further reductions in net risk adjustment revenue transfer expectations for the remaining seven states based on observed morbidity trends [5]. Group 2: Future Pricing and Market Strategy - Centene has begun the process of refiling 2026 Marketplace rates to reflect a higher projected baseline of Marketplace morbidity than previously expected [6]. - The company expects to implement corrective pricing actions for 2026 in states representing a substantial majority of its Marketplace membership [6]. Group 3: Medicaid and Medicare Performance - The Medicaid business has seen a step-up in medical cost trends, particularly in behavioral health, home health, and high-cost drugs, with expectations for a higher Medicaid Health Benefits Ratio (HBR) in Q2 2025 compared to Q1 2025 [8]. - The Medicare Advantage and Medicare Prescription Drug Plan businesses are performing better than expected in Q2 2025, contributing positively to the company's overall financial performance [9]. Group 4: Upcoming Reporting - The company is in the process of closing Q2 2025 and will report results and provide additional insights on July 25, 2025 [10].

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving ...

Core Insights - UnitedHealth Group Incorporated (UNH) has been removed from several Russell growth-style indices, indicating a significant decline in stock price and a shift away from traditional growth metrics [1][6] - The company's stock has underperformed severely, dropping 40.4% in the past three months, which is significantly worse than the broader industry decline of 31.6% and the S&P 500's gain of 9% during the same period [3][6] Financial Performance - UnitedHealth missed both earnings and revenue expectations in the first quarter and withdrew its full-year 2025 financial guidance, with rising medical costs particularly affecting the Medicare Advantage segment [5][11] - The Zacks Consensus Estimate for UNH's 2025 EPS has seen 13 downward revisions in the past 60 days, projecting a decline of 20.2% despite a revenue increase of 12.3% year over year [11] Market Position and Valuation - Although UNH appears attractively priced with a forward P/E of 13.15X, it remains above the industry average of 11.92X, indicating it is not necessarily a bargain despite the recent selloff [13] - The company continues to return capital to shareholders, having returned over $5 billion in the first quarter through dividends and stock repurchases, and raised its quarterly dividend by 5.2% [18] Operational Challenges - Leadership instability has compounded operational challenges, with CEO Andrew Witty stepping down unexpectedly and the company facing criminal investigations related to alleged Medicare fraud [7][10] - Regulatory scrutiny is increasing, particularly concerning Optum Rx, UnitedHealth's pharmacy benefit manager, which may face challenges from ongoing regulatory changes [10] Strategic Outlook - Despite current challenges, UnitedHealth is investing in technology and analytics, particularly in value-based care, which could stabilize earnings in the future [15] - Long-term demographic trends, such as an aging population and rising chronic disease rates, remain favorable for UnitedHealth's business model [16]