UnitedHealth

UNH

Market cap $303B

Rising medical expenses have been weighing down UnitedHealth's margins in recent quarters. The stock crashed last year after missing expectations, pulling its guidance, and changing its CEO.

UnitedHealth's health insurance unit said on Wednesday it has launched a pilot program aimed at speeding up Medicare Advantage payments by 50% on average to support independent rural hospitals in some states.

UnitedHealth faced a series of headwinds in 2025, resulting in a 34% decline in its stock price. The health insurance giant has taken several steps to address problems.

UnitedHealth Group Incorporated navigated a turbulent 2025 with management changes, mispriced costs, and a surging medical cost ratio, but revenue growth remained robust. We expect 2026 EPS guidance in the high teens, signaling a double-digit rebound off 2025's $16.25–$16.50 floor, with confirmation of inflection imminent at the upcoming earnings. Dividend growth and a 2.8% yield provide income while awaiting margin recovery; buybacks are paused but likely to resume as cash flow improves.

Recently the U.S. Senate approved another round of Affordable Care Act (ACA) subsidy extensions. Trump said he "might" veto the subsidy extensions, but he did not conclusively say he would. UnitedHealth's stock got beaten down partially because the subsidies were expected to expire. The subsidies did in fact expire, but were re-instated and extended. Just recently, the company re-affirmed its full year earnings guidance for 2026, a number that implies significant growth over the trailing 12 month period.

The Investment Committee give you their top stocks to watch for the second half.

--(BUSINESS WIRE)--UnitedHealth Group today announced the release of two new, independent commissioned actuarial studies. The findings, from the independent actuarial and research firm Milliman, using estimates of 2025 costs, summarize the value of Medicare Advantage (MA) both to the government and beneficiaries. Milliman found that: MA costs the federal government 9% less than traditional Medicare. MA out-of-pocket costs are 53% less than in traditional Medicare for a non-dual eligible aged-in.

Health insurer UnitedHealth Group used aggressive tactics to gather diagnoses that can boost Medicare Advantage payments, the Wall Street Journal reported on Monday, citing a U.S. Senate committee investigating the company's practices.

Sen. Chuck Grassley launched an investigation last year following Wall Street Journal reports examining the company's Medicare Advantage practices.

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