Latest news with #MedicareAdvantage
Miami Herald
21 hours ago
- Business
- Miami Herald
Walmart announces Medicare Advantage strategy
A retail giant like Walmart is apt to have a pretty diverse customer base. Parents of young children shop at Walmart frequently for the savings on groceries, apparel, and other essentials. College students shop at Walmart for affordable dorm room supplies and beauty products. Don't miss the move: Subscribe to TheStreet's free daily newsletter And young professionals flock to Walmart, because where else can you find so many things under one roof? Related: Walmart makes surprise cuts as it looks at tariff price hikes Walmart is also a popular retailer among older Americans. Many seniors today live on a budget that consists of a Social Security benefit and not much more. Shopping at Walmart helps retirees stretch those monthly benefits. And that's been especially important recently, given the toll inflation has taken on seniors. It's true that inflation has battered consumers across a range of ages. But seniors on a fixed income may be struggling the most in the face of higher costs. It's harder for older people to side-hustle their way into extra income to cope with rising expenses. So for many retirees, Walmart is a true lifeline. Image source: Brooks Kraft LLC/Corbis via Getty Images Many Americans sign up for traditional Medicare at age 65. It's not free healthcare by any means, but it's a solution when employer-sponsored coverage goes away in conjunction with retirement. Many seniors opt for Medicare Advantage over traditional Medicare. These plans are offered by private insurers and come with specific rules and benefits. Related: Walmart shares new service that's better than Amazon The upside of Medicare Advantage is the expanded benefits it offers beyond what traditional Medicare covers. In some cases, Medicare Advantage can also provide cost savings. But seniors on Medicare Advantage often struggle to understand and maximize their benefits. Part of the reason is that each Medicare Advantage plan is unique, and enrollees have to familiarize themselves with the rules every time they switch coverage. Medicare Advantage enrollees often need help understanding how to best use their benefits. Walmart is stepping in. The retail giant just announced that Medicare Advantage members can now add benefit card information to their accounts. This allows them to unlock plan-specific benefits while shopping on the site and using the store's app. Related: Walmart CEO has a simple plan to keep prices low despite tariffs Under this new system, Walmart customers will see a "benefit program eligible" icon on products that are eligible for coverage under their specific Medicare Advantage plan. It's common for Medicare Advantage plans to offer supplemental benefits that extend to wellness products, and in some cases, even food. Now, enrollees who shop at Walmart can more easily identify those items. Medicare Advantage enrollees can also use Walmart's new system to specifically search for benefits-eligible items, saving themselves time. "We saw an opportunity to streamline the health benefits shopping journey, make it easier for customers to discover eligible items and offer convenient pickup and delivery options that fit their busy schedule," said Senior Vice President of Health & Wellness Merchandising Ralph Clare. More retail: Walmart CEO sounds alarm on a big problem for customersTarget makes a change that might scare Walmart, CostcoTop investor takes firm stance on troubled retail brandWalmart and Costco making major change affecting all customers Roughly two-thirds of Medicare Advantage enrollees don't use their over-the-counter benefits, and much of that stems from not understanding which products are covered by their plans. Walmart's new system could help senior shoppers make the most of their Medicare Advantage coverage and save money on health-related essentials. Related: Walmart and Target may lose access to popular products in tariff war The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
CNBC
a day ago
- Business
- CNBC
Deutsche Bank says take chance on beaten-up UnitedHealth because of valuation
UnitedHealth could be a bargain for investors, according to Deutsche Bank. Analyst George Hill maintained his buy rating along with his target price of $362. That, he said, reflects an earnings multiple of 16 — which sits at the low end of the stock's 10-year trading range. Hill's forecast implies UnitedHealth shares could gain 21.4% from Thursday's close. "We're hanging our gloves on valuation: We maintain our buy rating on UNH's shares, as even here using a trough-ish multiple on our expected 2025 trough earnings still implies meaningful upside to the shares," Hill said in a Thursday note to clients. "We continue to see the company as a defensive name in the large-cap healthcare services space, though UNH has been burdened by a rotating array of headwinds over the last several years," he added. UnitedHealth shares have suffered a 41% decline this year as the company deals with multiple setbacks, including the recent exit of its CEO , suspension of its annual forecast, reports of a Department of Justice investigation into fraud allegations and higher medical costs. "Our target multiple reflects the continued challenges, regulatory overhang, and persistent negative sentiment tied to the MCO space," Hill said. UNH 1Y mountain UnitedHealth 1-yr chart Hill thinks there's plenty of upside ahead for UnitedHealth, but said the company should ditch its current long-term guidance, which sits higher than the range of most other managed care companies. He expects the company's core managed care business to generate operating profit growth of between 3% and 5% as Medicare Advantage plans mature. The company's ability to grow its operating profit growth through acquisition will be "challenged at best," according to the analyst. He added that there also remains an ongoing regulatory overhang on the company and negative sentiment in the managed care space.
Yahoo
a day ago
- Business
- Yahoo
3 Stocks Under $10 in the Doghouse
Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums). That doesn't mean they're bargains though, and we urge investors to be careful as many have risky business models. Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are three stocks under $10 to avoid and some other investments you should consider instead. Share Price: $4.17 Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ:ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors. Why Is ASYS Risky? Customers postponed purchases of its products and services this cycle as its revenue declined by 7.9% annually over the last two years Historical operating margin losses point to an inefficient cost structure Negative returns on capital show that some of its growth strategies have backfired, and its shrinking returns suggest its past profit sources are losing steam Amtech's stock price of $4.17 implies a valuation ratio of 15.6x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than ASYS. Share Price: $3.12 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. Why Are We Cautious About CLOV? Products and services are facing significant end-market challenges during this cycle as sales have declined by 28.7% annually over the last two years Weak customer trends over the past two years suggest it may need to improve its products, pricing, or go-to-market strategy Cash burn makes us question whether it can achieve sustainable long-term growth At $3.12 per share, Clover Health trades at 42.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why CLOV doesn't pass our bar. Share Price: $4.90 Pioneering the modern office copier and inventing technologies like Ethernet and the laser printer, Xerox (NASDAQ:XRX) provides document management systems, printing technology, and workplace solutions to businesses of all sizes across the globe. Why Do We Think XRX Will Underperform? Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.7% annually over the last five years Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens Xerox is trading at $4.90 per share, or 5x forward P/E. To fully understand why you should be careful with XRX, check out our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
UnitedHealth Group Incorporated (UNH): A Bull Case Theory
We came across a bullish thesis on UnitedHealth Group Incorporated (UNH) on FluentInQuality's Substack. In this article, we will summarize the bulls' thesis on UNH. UnitedHealth Group Incorporated (UNH)'s share was trading at $295 as of 27th May. UNH's trailing and forward P/E were 12.35 and 12.92 respectively according to Yahoo Finance. alexkich/ UnitedHealth Group is well-positioned as Medicare Advantage grows, with its Optum Health division reaching nearly 100 million consumers annually, reflecting massive scale but showing recent stagnation likely due to market saturation, post-pandemic shifts, and a focus on value-based care. Leadership changes saw the return of former CEO Stephen Hemsley, whose long tenure and deep involvement have driven significant company growth, now reinforced by a substantial equity stake that aligns his interests with shareholders. Employee sentiment, based on thousands of Indeed reviews, is generally positive, highlighting competitive pay, mission alignment, career growth opportunities, and work-life balance, though communication from management could improve. UnitedHealth's financial performance shows strong value creation, with return metrics at the high end for healthcare insurers despite the capital-intensive nature of the industry. Insider and institutional ownership indicate confidence, with major executives and directors holding meaningful stock positions and many institutions increasing their shares. The company's competitive advantages stem from its unmatched scale, extensive provider network, and vertical integration via Optum, which spans insurance, care delivery, pharmacy benefits, and data analytics, creating high switching costs and operational efficiencies. Although its brand faces some reputational challenges, UnitedHealth leverages its vast network and embedded contracts to maintain pricing power and market dominance. The healthcare industry itself is on a robust growth trajectory, with U.S. spending projected to rise from $4.5 trillion in 2024 to $6.8 trillion by 2032, driven by aging demographics, chronic disease, and increased managed care adoption, providing strong secular tailwinds for UnitedHealth's continued expansion and innovation. Previously, we have covered UnitedHealth Group Incorporated (UNH) in April 2025, wherein we summarized a bullish thesis by Oguz Erkan on Substack. The author highlighted its position as a resilient healthcare compounder, benefiting from the defensive nature of health insurance and strong pricing power even during economic downturns. Despite recent challenges and skepticism, UNH's vertically integrated model through Optum supported consistent revenue growth of 11% annually, with a fair valuation reflected in its forward P/E of 20, making it an attractive long-term investment, especially on price dips below $550. UnitedHealth Group Incorporated (UNH) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 139 hedge fund portfolios held UNH at the end of the first quarter which was 150 in the previous quarter. While we acknowledge the risk and potential of UNH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
UnitedHealth Group Incorporated (UNH): A Bull Case Theory
We came across a bullish thesis on UnitedHealth Group Incorporated (UNH) on FluentInQuality's Substack. In this article, we will summarize the bulls' thesis on UNH. UnitedHealth Group Incorporated (UNH)'s share was trading at $295 as of 27th May. UNH's trailing and forward P/E were 12.35 and 12.92 respectively according to Yahoo Finance. alexkich/ UnitedHealth Group is well-positioned as Medicare Advantage grows, with its Optum Health division reaching nearly 100 million consumers annually, reflecting massive scale but showing recent stagnation likely due to market saturation, post-pandemic shifts, and a focus on value-based care. Leadership changes saw the return of former CEO Stephen Hemsley, whose long tenure and deep involvement have driven significant company growth, now reinforced by a substantial equity stake that aligns his interests with shareholders. Employee sentiment, based on thousands of Indeed reviews, is generally positive, highlighting competitive pay, mission alignment, career growth opportunities, and work-life balance, though communication from management could improve. UnitedHealth's financial performance shows strong value creation, with return metrics at the high end for healthcare insurers despite the capital-intensive nature of the industry. Insider and institutional ownership indicate confidence, with major executives and directors holding meaningful stock positions and many institutions increasing their shares. The company's competitive advantages stem from its unmatched scale, extensive provider network, and vertical integration via Optum, which spans insurance, care delivery, pharmacy benefits, and data analytics, creating high switching costs and operational efficiencies. Although its brand faces some reputational challenges, UnitedHealth leverages its vast network and embedded contracts to maintain pricing power and market dominance. The healthcare industry itself is on a robust growth trajectory, with U.S. spending projected to rise from $4.5 trillion in 2024 to $6.8 trillion by 2032, driven by aging demographics, chronic disease, and increased managed care adoption, providing strong secular tailwinds for UnitedHealth's continued expansion and innovation. Previously, we have covered UnitedHealth Group Incorporated (UNH) in April 2025, wherein we summarized a bullish thesis by Oguz Erkan on Substack. The author highlighted its position as a resilient healthcare compounder, benefiting from the defensive nature of health insurance and strong pricing power even during economic downturns. Despite recent challenges and skepticism, UNH's vertically integrated model through Optum supported consistent revenue growth of 11% annually, with a fair valuation reflected in its forward P/E of 20, making it an attractive long-term investment, especially on price dips below $550. UnitedHealth Group Incorporated (UNH) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 139 hedge fund portfolios held UNH at the end of the first quarter which was 150 in the previous quarter. While we acknowledge the risk and potential of UNH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
