$ELV (-8,23 %)

• EPS: $8.84 vs $9.07 expected ❌
• Revenue: $49.4 billion vs $48.14 billion expected ✅
• FY25 EPS guidance: $30.00 vs $34.48 consensus ❌

• Benefit cost ratio: 88.9%; increase of +260 basis points compared to the previous year
• Operating expense ratio: 10.1 %; decrease of -160 basis points compared to the previous year

The second-largest health insurer reported its profits. Although these were below consensus, they were not too bad given the panic in the industry.

The benefit cost ratio was 88.9%, an increase of 260 basis points from the previous year, reflecting the trend toward higher medical costs, particularly in the Medicaid business and ACA health plans.

CEO Comment:

• "In the second quarter, Elevance Health made significant progress in delivering a simple and personalized experience for our customers while advancing our efforts to improve efficiencies across the health system ... With the embedded earnings power of our diversified Health Benefits and Carelon businesses, we remain confident in our ability to deliver at least 12% compound annual growth in adjusted diluted earnings per share over time." - Gail K. Boudreaux

$UNH (-2,16 %)
$CNC (-4,64 %)
$US60855R1005 (-11 %)
$CVS (-2,52 %)
$OSCR

$UNH (-2,16 %)

$UNH (-2,16 %) has not experienced two consecutive years of negative returns since 1987.

Who is still invested here, who is buying, what are your assessments? 🤔

In my opinion, a lot of negative things are already priced in here.

• There is no evidence for the accusations
• Every accusation is contradicted and more openness is also suggested
• They are regularly reviewed and nothing negative has been found
• Bad "old" news is constantly being rehashed which has already been dismissed as unfounded and unproven
• CEO and other insiders have set an example by buying it
• $UNH (-2,16 %) is one of the largest employers in the US and also system relevant
• Medicare/Medicaid accounts for only 15% of revenue
• Outlook/expectations have already been reduced
• Historically high dividend yield of just under 3%
• Possible penalties already priced in in my opinion

yes, of course there is still downside potential, but the risk/reward ratio is already very attractive

The entire sector has similar ways of working and a decline/reduction in Medicare could $UNH (-2,16 %) as the top dog in the private sector could even play into its hands.

UnitedHealth Group $UNH (-2,16 %) has traded at the largest deviation from the S&P 500 price-to-earnings ratio since its IPO ...

This stock has literally NEVER been this cheap relative to the S&P 500.

Incredibly exciting to follow the story.

$CNC (-4,64 %)
$CVS (-2,52 %)
$OSCR
$HUM (-10,11 %)
$CI (-1,09 %)
$ELV (-8,23 %)
$XDWH (-0,71 %)

$CNC (-4,64 %)
$CI (-1,09 %)
$OSCR
$UNH (-2,16 %)
$HUM (-10,11 %)
$CVS (-2,52 %)

$CNC (-4,64 %) Centene has withdrawn its earnings guidance for 2025 after new data showed significantly higher morbidity and lower than expected growth in the Marketplace business. This resulted in a decline in net revenue from risk adjustment of approximately $1.8 billion and a decline in earnings of approximately $2.75 per share. Medicaid costs are also rising, particularly in the areas of mental health, home care and expensive drugs in states such as New York and Florida. $CNC (-4,64 %) plans a price correction for 2026 and will provide more information in its Q2 results on July 25.

Oscar Health $OSCR is also down due to its high presence in this area, as are other insurance stocks such as $HUM (-10,11 %) , $CI (-1,09 %) and $UNH (-2,16 %) . $CNC (-4,64 %) will announce further details on its Q2 results on July 25.

Centene $CNC (-4,64 %) has withdrawn its forecast for 2025 due to rising ACA/Medicaid costs. (The Affordable Care Act (ACA), also known as ObamacareACA) accounts for 72% of the business of $CNC (-4,64 %) business.

$UNH (-2,16 %) has withdrawn from many ACA markets and it now accounts for only a small part of their business.

$CNC (-4,64 %) also reported that Medicare Advantage plans are doing better than expected, could be a positive for $UNH (-2,16 %) positive as many people now have to self-insure.

Molina $US60855R1005 (-11 %) - 80 %

Centene $CNC (-4,64 %) - 52 %

Elevance $ELV (-8,23 %) - 25 %

UnitedHealth $UNH (-2,16 %) - 11 %

CVS Health (Aetna) $CVS (-2,52 %) - 6 %

Companies that in my opinion have upside potential on positive news.

Healthcare sector in general with a lot of catch-up potential, can in my opinion be well overplayed. $XDWH (-0,71 %) play.

Do you have any sectors that you play via ETFs and if so, which ones?

I would be interested, I will probably now also set up a savings plan on $DAPP (-0,45 %) and make a first purchase.

• Expansion of the money supply
• Possible fall in interest rates
• Debt of the USA (repayment 1/3 this year)
• and much more

In my opinion, this should $BTC (+0,21 %) and a large part of the associated companies.

(Even if we are already somewhat further advanced)

Looking forward to your opinions and sector ETF's, even if they are only short term positions.

Normally I only go for individual stocks, but as I hardly want to hold cash, I feel very comfortable in the healthcare sector at the moment. ✌️

$UNH (-2,16 %)

19 purchases in 2025, some already in the red

$CVS (-2,52 %)
$OSCR
$CI (-1,09 %)
$HUM (-10,11 %)
$CNC (-4,64 %)
$ELV (-8,23 %)

$UNH (-2,16 %)

$UNH (-2,16 %) is a full-stack company in the healthcare sector.

It has two main business units: UnitedHealthcare and Optum.

UnitedHealthcare provides health insurance, while Optum provides care services and pharmacy benefits management.

Customers pay premiums to UnitedHealthcare.

When they need care, they primarily use Optum and $UNH (-2,16 %) pay Optum for their care.

Optum not only provides the company with operational benefits, but also generates significant external revenue.

Many other insurers and employers also use Optum's care network and benefits administration for pharmacies.

This generates considerable external revenue.

This model has worked incredibly well for $UNH (-2,16 %) worked incredibly well so far.

Although the company is the largest health insurer in the world, it has been able to increase its turnover by 11% annually over the last five years.

In the last quarter, the company gained a record 700,000 customers, an amazing achievement.

UnitedHealth Group (UNH) Annual % Change

2025 - 39.62%

2024 - 2.41%

2023 0.79%

2022 6.94%

2021 45.2%

2020 21.25%

2019 20%

2018 14.52%

2017 39.83%

2016 38.41%

2015 18.27%

2014 36.46%

2013 41.04%

2012 8.6%

2011 42.18%

2010 19.91%

2009 14.75%

2008 -54.26%

2007 8.38%

2006 -13.49%

2005 41.22%

2004 51.38%

2003 39.4%

2002 18.04%

2001 15.37%

2000 131.18%

1999 23.44%

1998 13.29%

1997 10.49%

1996 31.13%

1995 44.97%

1994 19.02%

1993 33.49%

1992 52.75%

1991 220.6%

1990 92.15%

1989 169.46%

1988 24.1%

1987 56.71%

1986 18.29%

1985 164.44%

Also a positive sign:

United Healthcare $UNH (-2,16 %) has recently seen considerable insider buying.

On May 16, CEO Hemsley bought 86,700 shares for 25 million dollars.

He was previously CEO of United Healthcare from 2006 to 2017 $UNH (-2,16 %) and took office again in May. He now owns 1,112,339 shares worth around 340 million dollars

John Rex, President and CFO of the company, also bought 5 million dollars worth of shares on May 16 to increase his stake, which is now worth around 60 million dollars.

$CNC (-4,64 %)
$OSCR
$CVS (-2,52 %)
$CI (-1,09 %)

$UNH (-2,16 %) - United Health

After the numbers were very solid and the other health insurers/sector didn't really react strongly.

Which other health insurers could also react strongly after the numbers and surprise positively?

Which one is your favorite and why ?

$CVS (-2,52 %) - CVS Health

$HUM (-2,51 %) - Humana

$ELV (-8,23 %) - Elevance Health

$HCA (-0,8 %) - HCA Healthcare

$CI (-1,09 %) - Cigna

$CNC (-4,64 %) - Centene

Or do you have other favorites or companies from the sector on your watchlist?