UNH

UnitedHealth Group reported Q3 adjusted earnings of $4.69 per share, beating estimates by 13.9% with a 60.6% year-over-year increase. The company raised its 2026 EPS outlook to at least $20.50, driven by improved margins and lower medical costs.

However, membership declined to 48.3 million from 50.1 million, raising questions about long-term sustainability. Optum also showed strong recovery with margins expanding to 5.6%. The stock carries a Zacks Rank #2 (Buy) rating with valuation below historical medians.

BWX Technologies, Johnson & Johnson, and UnitedHealth Group have all raised their FY26 outlooks following solid quarterly earnings. BWX Technologies saw strong commercial nuclear operations growth, J&J benefited from pharmaceutical portfolio strength, and UnitedHealth Group showed improving cost trends with a lower medical care ratio.

With September CPI rising 3.7% year-over-year and inflation concerns potentially triggering additional Fed rate hikes, the article recommends three low-beta defensive healthcare stocks: Cardinal Health (CAH), UnitedHealth Group (UNH), and Corcept Therapeutics (CORT). These stocks offer lower market volatility and strong earnings growth prospects in an uncertain economic environment.