Let’s dig into the relative performance of Molina Healthcare (NYSE: MOH) and its peers as we unravel the now-completed Q3 health insurance providers earnings season.

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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 1.1% below.

While some health insurance providers stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.5% since the latest earnings results.

Weakest Q3: Molina Healthcare (NYSE: MOH)

Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE: MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.

Molina Healthcare reported revenues of $11.48 billion, up 11% year on year. This print exceeded analysts’ expectations by 4.6%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS guidance for next quarter estimates.

Molina Healthcare delivered the weakest full-year guidance update of the whole group. The company lost 118,000 customers and ended up with a total of 5.63 million. Unsurprisingly, the stock is down 14.2% since reporting and currently trades at $167.00.

Is now the time to buy Molina Healthcare? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $102.9 billion, up 7.8% year on year, outperforming analysts’ expectations by 4.1%. The business had an exceptional quarter with an impressive beat of analysts’ same-store sales estimates and a solid beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.8% since reporting. It currently trades at $79.90.

Is now the time to buy CVS Health? Access our full analysis of the earnings results here, it’s free for active Edge members.

Clover Health (NASDAQ: CLOV)

Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ: CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.

Clover Health reported revenues of $496.7 million, up 50.1% year on year, exceeding analysts’ expectations by 5.4%. Still, it was a mixed quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly.

As expected, the stock is down 29.8% since the results and currently trades at $2.47.

Read our full analysis of Clover Health’s results here.

Centene (NYSE: CNC)

Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE: CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.

Centene reported revenues of $49.69 billion, up 18.2% year on year. This number beat analysts’ expectations by 3.7%. Overall, it was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.

The company lost 36,800 customers and ended up with a total of 27.97 million. The stock is up 22.8% since reporting and currently trades at $40.77.

Read our full, actionable report on Centene here, it’s free for active Edge members.

Cigna (NYSE: CI)

With roots dating back to 1792 and serving millions of customers across the globe, The Cigna Group (NYSE: CI) provides healthcare services through its Evernorth Health Services and Cigna Healthcare segments, offering pharmacy benefits, specialty care, and medical plans.

Cigna reported revenues of $69.57 billion, up 9.2% year on year. This print topped analysts’ expectations by 3.1%. Zooming out, it was a satisfactory quarter as it also produced a solid beat of analysts’ revenue estimates but full-year EPS guidance in line with analysts’ estimates.

The company lost 3,000 customers and ended up with a total of 16.35 million. The stock is down 7.8% since reporting and currently trades at $275.66.

Read our full, actionable report on Cigna here, it’s free for active Edge members.

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.

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