Shares of health insurance company Humana (NYSE:HUM)
fell 3.2% in the morning session after the company lost a lawsuit seeking to reverse cuts to its Medicare bonus payments.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
The escalation of tariff policies has intensified market volatility, with President Trump announcing a new wave of levies, including 30% tariffs on the European Union and Mexico starting August 1, a 35% tariff on Canadian goods, and a 10-15% baseline tariff proposed for over 150 countries, with up to 145%
Insider buys are rising for these three stocks. That includes UnitedHealth Group, whose new CEO with a history of generating returns spent millions on shares.
Shares of health insurance provider Elevance Health (NYSE:EVH)
fell 11.5% in the afternoon session after the company reported its second-quarter results and cut its full-year profit guidance, citing rising medical costs. The health insurer announced second-quarter adjusted earnings of $8.84 per share, which missed Wall Street's expectation of $9.16 per share. While revenue of $49.42 billion beat forecasts, the company's net income declined to $1.74 billion from $2.30 billion in the same quarter last year. The key concern for investors was the significant reduction in the company's full-year 2025 profit outlook. Elevance now expects adjusted earnings per share of approximately $30.00, a substantial cut from its previous forecast of $34.15 to $34.85. Management attributed the downgrade to "elevated medical cost trends" in its Medicaid and Affordable Care Act (ACA) health plans. This was reflected in a higher benefit expense ratio—the percentage of premiums spent on medical care—which rose to 88.9%, indicating that costs are growing faster than premiums. The news also weighed on shares of other health insurers facing similar cost pressures.
Abbott’s sales of continuous glucose monitors were $1.9 billion in the second quarter, marking a growth of 21.4% on a reported basis, the company said.
The health insurer now expects its adjusted net income per diluted share to be approximately $30.00, down from its previous guidance of $34.15 to $34.85.
Shares of radiopharmaceutical company Lantheus Holdings (NASDAQ:LNTH)
fell 7.7% in the morning session after the stock hit a new 52-week low amid persistent investor concerns over rising competition and the company's recent financial results.
UnitedHealth extended its 15-year earnings beat streak in 2024 with $3.3 billion in asset sales, raising questions about financial reporting and deal transparency.
The healthcare firm is facing renewed scrutiny over its earnings practices and competitive pressures in the pharmacy benefits sector, deepening investor concerns.
Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor.
The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
Shares of biotechnology company Moderna (NASDAQ:MRNA)
fell 3.6% in the morning session after JPMorgan added the stock to its list of top short ideas for the second half of 2025.
Shares of medical supply and logistics company Owens & Minor (NYSE:OMI) fell 3.2% in the morning session after continued pressure from the previous week's announcement of potential new U.S. tariffs on Canada.
