HUM

UnitedHealth Group is prioritizing Chronic Special Needs Plans (C-SNPs) and Dual Eligible Special Needs Plans (D-SNPs) for 2027 to drive targeted Medicare Advantage growth. UNH expects Medicare margins near the upper end of its 2%-4% target in 2026, with at least 69% of its Medicare Advantage members in four-star or higher rated plans. The company faces competition from Humana and Centene, which are also expanding specialized Medicare Advantage offerings.

Humana Inc. (HUM) is forming a joint venture with BlackRock's HPS Investment Partners to own nearly 150 CenterWell Senior Primary Care clinics. BlackRock will acquire the existing equity stake valued at approximately $2.8 billion and hold majority ownership, while CenterWell retains minority ownership and operational control.

The partnership is expected to reduce Humana's balance sheet liabilities, provide greater financial flexibility, and accelerate clinic expansion. The transaction is set to close in Q4 2026 without materially affecting 2026 earnings guidance.

Humana shares surged 11.6% to $431.87, driven by strong Medicare membership growth (up 20.7% YoY to 17.9 million members) and expansion of its CenterWell platform. However, the stock faces headwinds as consensus EPS estimates have been revised 2.7% lower over the past 30 days, and the company is expected to report a quarterly loss of $1.04 per share. The stock holds a Zacks Rank #3 (Hold) rating.