As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at health insurance providers stocks, starting with Humana (NYSE:HUM).
Upfront premiums collected by health insurers lead to reliable revenue, but profitability ultimately depends on accurate risk assessments and the ability to control medical costs. Health insurers are also highly sensitive to regulatory changes and economic conditions such as unemployment. Going forward, the industry faces tailwinds from an aging population, increasing demand for personalized healthcare services, and advancements in data analytics to improve cost management. However, continued regulatory scrutiny on pricing practices, the potential for government-led reforms such as expanded public healthcare options, and inflation in medical costs could add volatility to margins. One big debate among investors is the long-term impact of AI and whether it will help underwriting, fraud detection, and claims processing or whether it may wade into ethical grey areas like reinforcing biases and widening disparities in medical care.
The 12 health insurance providers stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 3.5% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 4.4% on average since the latest earnings results.
Humana (NYSE:HUM)
With over 80% of its revenue derived from federal government contracts, Humana (NYSE:HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.
Humana reported revenues of $32.39 billion, up 9.6% year on year. This print exceeded analysts’ expectations by 1.7%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ full-year EPS guidance estimates and full-year revenue guidance slightly topping analysts’ expectations.
Interestingly, the stock is up 24.5% since reporting and currently trades at $290.
We think Humana is a good business, but is it a buy today? Read our full report here, it’s free.
Best Q2: CVS Health (NYSE:CVS)
With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE:CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary.
CVS Health reported revenues of $98.92 billion, up 8.4% year on year, outperforming analysts’ expectations by 5.1%. The business had a stunning quarter with a solid beat of analysts’ same-store sales estimates and a beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 13.4% since reporting. It currently trades at $70.70.
Is now the time to buy CVS Health? Access our full analysis of the earnings results here, it’s free.
Oscar Health (NYSE:OSCR)
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE:OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
Oscar Health reported revenues of $2.86 billion, up 29% year on year, falling short of analysts’ expectations by 3.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Oscar Health delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 10.5% since the results and currently trades at $15.27.
Read our full analysis of Oscar Health’s results here.
Progyny (NASDAQ:PGNY)
Pioneering a data-driven approach to family building that has achieved an industry-leading patient satisfaction score of +80, Progyny (NASDAQ:PGNY) provides comprehensive fertility and family building benefits solutions to employers, helping employees access quality fertility treatments and support services.
Progyny reported revenues of $332.9 million, up 9.5% year on year. This print beat analysts’ expectations by 3.9%. It was an exceptional quarter as it also recorded an impressive beat of analysts’ sales volume estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.
The stock is down 4.3% since reporting and currently trades at $22.03.
Read our full, actionable report on Progyny here, it’s free.
Cencora (NYSE:COR)
Formerly known as AmerisourceBergen until its 2023 rebranding, Cencora (NYSE:COR) is a global pharmaceutical distribution company that connects manufacturers with healthcare providers while offering logistics, data analytics, and consulting services.
Cencora reported revenues of $80.66 billion, up 8.7% year on year. This result topped analysts’ expectations by 1.1%. It was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates.
The stock is up 3.9% since reporting and currently trades at $303.69.
Read our full, actionable report on Cencora here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.