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CBC
13 minutes ago
- CBC
Ontario signs deals with Saskatchewan, P.E.I. and Alberta to reduce trade barriers
Ontario Premier Doug Ford signed deals with three more provinces to reduce interprovincial trade barriers. As CBC's Naama Weingarten explains, this is part of Ontario's ongoing efforts to offset the impact of U.S. tariffs on the Canadian economy.
Globe and Mail
19 minutes ago
- Globe and Mail
UnitedHealth Declines 40.4% YTD: Here's Why it's Still Not a Bargain
UnitedHealth Group Incorporated UNH shares have tumbled 25.4% in the past month alone, bringing their year-to-date loss to 40.4%. That's well below the performance of both the broader industry (-29.2%) and the S&P 500 (flat). Among its peers, Humana Inc. HUM has declined just 8.1% and Elevance Health, Inc. ELV has gained 4%, underscoring UNH's uniquely sharp decline. Historically considered a defensive healthcare stock, UnitedHealth's consistent earnings, stable dividend, and low beta (0.45) made it a favorite among risk-averse, long-term investors. But this year's selloff may not be a buying opportunity; it looks more like catching a falling knife. UNH's Mounting Headwinds UnitedHealth is facing simultaneous pressures across multiple business lines. The company missed both earnings and revenue estimates in the first quarter and withdrew its 2025 financial guidance. Meanwhile, rising medical costs, especially in the Medicare Advantage segment, continue to compress margins. Higher-than-expected patient volumes, particularly high-acuity cases, have further strained profitability. Moreover, CEO Andrew Witty stepped down, prompting the return of longtime executive Stephen Hemsley. Soon after, a Wall Street Journal report revealed a criminal investigation into alleged Medicare fraud. Additional setbacks include a major expansion of Medicare Advantage audits by the Centers for Medicare and Medicaid Services, raising the risk of penalties and reimbursement clawbacks. While Hemsley's $25 million stock purchase offered brief reassurance, the bounce was short-lived. The stock fell again after reports emerged alleging the company secretly incentivized nursing homes to avoid hospital transfers, an accusation the Department of Justice declined to pursue due to insufficient evidence, but one that damaged UNH's reputation nonetheless. Investor sentiment is rapidly Zacks Consensus Estimate for UNH's 2025 EPS has seen 12 downward revisions in the past month, while the 2026 EPS estimate has seen 10, without a single upward revision. Earnings for 2025 are now projected to decline by 17.3%, even as revenues are still expected to climb 12.9% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.) UNH Not Cheap Enough to Chase At first glance, UnitedHealth appears attractively priced, trading at a forward P/E of 12.31X, well below its five-year median of 19.20X. However, that multiple still sits above the industry average of 11.50X. By comparison, Humana trades at 15.18X and Elevance at 10.54X, placing UnitedHealth somewhere in the middle despite the selloff. But valuation alone is not enough to justify entry. Regulatory risk, cost pressures and reputational damage pose real threats to the company's business model. Optum Rx, UNH's pharmacy benefit manager, may also face headwinds from regulatory moves targeting PBMs' pricing power. President Trump's "most-favored nation" executive order will likely affect 'middlemen' and facilitate the direct sale of drugs to patients. Whether these issues mark a temporary rough patch or signal deeper structural challenges remains to be seen. Either way, the margin of safety appears thin at the moment. Is There a Path Forward for UnitedHealth? Despite the turmoil, UnitedHealth retains significant competitive advantages. Its vertically integrated model, scale, and investments in AI and digital health position it to navigate long-term industry trends. Medicare Advantage rate increases in 2026 could provide some relief to margins. As of March 31, 2025, UnitedHealthcare served 50.1 million members, up 1.9% year over year, driven by growth in self-funded commercial plans. U.S. healthcare spending continues to rise with an aging population and increasing chronic disease rates, trends that ultimately play to UnitedHealth's strengths. Financially, the company remains on solid footing. It generated $5.5 billion in operating cash flow in the first quarter, up significantly from $1.1 billion the year prior and ended the quarter with $34.3 billion in cash and short-term investments. It also returned over $5 billion to shareholders through dividends and stock buybacks. Final Verdict: Wait for Stability UnitedHealth's near-term outlook remains clouded by a series of setbacks, including regulatory probes, leadership change, rising costs and the withdrawal of 2025 guidance. While the company maintains a strong market position and generates solid cash flow, these challenges have sharply undermined investor confidence. Ongoing legal scrutiny and continued earnings downgrades have only deepened uncertainty around a potential recovery. With no clear catalysts in sight and the stock underperforming significantly, UnitedHealth carries a Zacks Rank #5 (Strong Sell). Investors may be better served waiting for signs of stabilization before re-entering. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Humana Inc. (HUM): Free Stock Analysis Report Elevance Health, Inc. (ELV): Free Stock Analysis Report
CTV News
23 minutes ago
- CTV News
Carney had ‘constructive meeting' with Alberta Premier Danielle Smith
Prime Minister Mark Carney and Alberta Premier Danielle Smith, along with other dignitaries, are seen at a meeting in Saskatoon on June 1, 2025. (Supplied/X/@MarkJCarney) The prime minister is pleased with the outcome of the meetings he had with Alberta Premier Danielle Smith on Sunday. Mark Carney wrote on social media that his meeting with Smith was 'constructive' and made progress on the goal of reaching a 'united Canadian economy.' 'Including getting big things built and major infrastructure projects off the ground in Alberta and across Canada,' he said, along with posting a picture of he and Smith at the meeting in Saskatoon. The prime minister did not share any details about the nature of those projects. Smith wrote that she provided Carney with 'a list of reasonable changes he must make' to prove he wants to unite Canada. 'Alberta is looking forward to seeing rapid and tangible progress on these reforms following the First Ministers' Meeting this week,' she wrote. Carney met with oil and gas executives in Calgary on Sunday morning, his first visit to the city since being sworn in as prime minister. During those meetings, he pushed for 'partnership' in a 'divided and dangerous' world. 'We will do everything we can at the federal government level to support those partnerships,' Carney said. First minister's meeting scheduled Monday Carney's meeting with Smith came ahead of a larger in-person conference with all of Canada's premiers set to take place Monday in Saskatoon. There, the leaders will discuss national infrastructure projects that Carney promised to fast-track. He's asked the premiers to lay out their priorities. Those meetings came after Smith and Ontario Premier Doug Ford signed a memorandum of understanding to improve the flow of goods and services and all direct-to-consumer sales of Ontario-made and Alberta-made alcohol between the two provinces. It's also expected to simplify the requirements for regulated professionals to work across provincial borders. After Monday's meeting, Smith said she will be joining a delegation to Washington to promote Alberta at a major energy conference. (With files from the Canadian Press and Mason DePatie)
