- Optum Rx Pricing Shift Puts New Focus On UnitedHealth Group Valuation
May 12, 2026
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Optum Rx, part of UnitedHealth Group, has rolled out a new fee-based pharmacy benefit management model that removes traditional volume-linked drug pricing. The model is paired with digital tools that show prescription level cost estimates to payers and patients. This change is intended to increase pricing clarity, align incentives across the drug supply chain, and influence how pharmacy benefits are structured.
For investors watching NYSE:UNH, this move comes with the stock at a share price of $384.44 and a value score of 4. The share price performance data is mixed, with the stock up 26.3% over the past 30 days and 14.3% year to date, but down 16.2% over 3 years and up 2.5% over 5 years. In that context, the PBM pricing shift highlights how UnitedHealth Group is adjusting key parts of its health services platform.
Looking ahead, the new Optum Rx model and digital transparency tools could affect how employers, health plans, and patients compare PBM offerings and pharmacy costs. For NYSE:UNH, the impact investors may watch most closely is whether this approach changes client retention, new business wins, and prescription utilization patterns over time.
Stay updated on the most important news stories for UnitedHealth Group by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on UnitedHealth Group.NYSE:UNH Earnings & Revenue Growth as at May 2026
3 things going right for UnitedHealth Group that this headline doesn't cover.
Quick Assessment
⚖️ Price vs Analyst Target: At US$384.44, the stock sits roughly 1% below the US$387.27 analyst consensus target, which is within the usual noise band. ✅ Simply Wall St Valuation: The stock is flagged as trading about 56.6% below an estimated fair value, which is a wide valuation gap. ✅ Recent Momentum: A 26.3% return over 30 days shows strong short term interest as the PBM news lands.
There is only one way to know the right time to buy, sell or hold UnitedHealth Group. Head to Simply Wall St's company report for the latest analysis of UnitedHealth Group's Fair Value.
Key Considerations
📊 The new Optum Rx pricing and transparency model could influence how sticky PBM clients are and how UnitedHealth Group competes for new contracts. 📊 Keep an eye on PBM related revenue, prescription volumes, and any commentary on client wins or renewals tied to the transparency tools. ⚠️ Profit margins of 2.7% and flagged high debt mean investors may want to watch how any pricing shifts affect profitability and leverage.
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Dig Deeper
For the full picture, including more risks and rewards, check out the complete UnitedHealth Group analysis. Alternatively, you can visit the community page for UnitedHealth Group to see how other investors believe this latest news will impact the company's narrative.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include UNH.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Top Research Reports for UnitedHealth, Merck & Qualcomm
May 11, 2026
Monday, May 11, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including UnitedHealth Group Inc. (UNH), Merck & Co., Inc. (MRK) and Qualcomm Inc. (QCOM), as well as two micro-cap stocks EVI Industries, Inc. (EVI) and Optex Systems Holdings, Inc (OPXS). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Inflation Numbers Out This Week: CPI, PPI
Today's Featured Research Reports
UnitedHealth’s shares have outperformed the Zacks Medical - HMOs industry over the past year (+2.6% vs. -0.2%). The company has shown steady revenue growth, driven by Optum and UnitedHealthcare. A strong market position and ongoing expansion initiatives, combined with rising healthcare demand, support sustained long-term growth.
UnitedHealth expects total revenues to be over $439 billion in 2026. Optum remains a key driver via pharmacy services, tech integration, and government solutions. Commercial membership also grew for UNH, supporting margins despite headwinds from government programs. Robust cash generation supports shareholder returns and financial flexibility.
However, rising medical costs continue to pressure margins, reflected in an elevated MCR despite recent improvement, while elevated debt and interest expenses strain financial flexibility. It is currently overvalued compared with the industry. The Zacks analyst reiterate our Neutral recommendation on the stock.
(You can read the full research report on UnitedHealth here >>>)
Shares of Merck have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+45.6% vs. +19.9%). The company’s first-quarter earnings and sales beat estimates. Its blockbuster drug, Keytruda, and new products have been driving sales. Animal Health is also contributing to growth. Though Keytruda will lose patent exclusivity in 2028, its sales are expected to remain strong until then.
Recent M&A deals have strengthened Merck’s pipeline while its late-stage pipeline and new launches are gaining traction. This progress has increased confidence that Merck can maintain growth even after Keytruda loses exclusivity.
However, it faces several near-term challenges, including persistent challenges for Gardasil in China, potential competition for Keytruda, and rising competitive and generic pressure on some of its drugs. Also, estimates have declined recently due to costs related to its various M&A deals.
(You can read the full research report on Merck here >>>)
Qualcomm’s shares have gained +58% over the past year against the Zacks Electronics - Semiconductors industry’s gain of +107%. The company reported mixed second-quarter fiscal 2026 results, with adjusted earnings beating the Zacks Consensus Estimates while revenue missed the same.
Qualcomm continues to pivot from a handset-centric model toward a broader connected processor portfolio. Solid traction in the automotive business augurs well, with more than 1 million cars operating ADAS and autonomy on Snapdragon Ride processors. Higher content per vehicle on the Snapdragon Digital Chassis, broader edge AI adoption across devices and data center traction are positives.
However, handset demand is tied to uncertain memory supply and pricing, which is keeping chipset shipments below end demand and driving a softer near-term outlook. Management expects China handset revenue to bottom in the fiscal third quarter, but near-term guidance still implies lower revenue and profitability.
(You can read the full research report on Qualcomm here >>>)
Shares of EVI Industries have outperformed the Zacks Industrial Services industry over the past year (+30.4% vs. -0.9%). This microcap company with a market capitalization of $257.89 million delivered solid top-line momentum, with revenues rising 24% in the December quarter and 20% for the first six months of FY26, alongside gross margin expansion to ~31%.
Improved mix, pricing discipline and operating leverage are enhancing earnings quality. Fiscal 2025 acquisitions contributed $40 million in revenues and $2 million in net income year to date. Operating cash flow improved to $5.1 million despite a $12.6 million inventory build, while a growing installed base and $9.7 million in lease receivables provide recurring service visibility.
However, earnings conversion remains pressured: net income dipped to $4.2 million as SG&A rose 26%, outpacing revenue growth. Inventory increased to $78 million, elevating working capital and demand-risk exposure. Debt rose to $58 million under a variable-rate facility, increasing sensitivity to higher rates. Shares trade at 0.73X EV/sales and 14.31X EV/EBITDA.
(You can read the full research report on EVI Industries here >>>)
Optex Systems’ shares have outperformed the Zacks Aerospace - Defense Equipment industry over the past year (+56.5% vs. +27.6%). This microcap company with a market capitalization of $70.76 million is demonstrating strengthening demand momentum, with Q1 FY26 orders rising 31.7% YoY to $7.9 million, driven by a doubling of periscope bookings and sharp growth in optical assemblies.
Recent multi-year contract awards totaling more than $6 million extend production visibility into 2027, supporting revenue durability. Quarterly revenues increased 11.6% to $9.1 million, led by a 55.9% surge in the Richardson segment, which now represents 58% of sales. Liquidity remains solid, with $5.8 million in cash, $21.2 million in working capital and no revolver borrowings.
However, gross margin declined and operating income fell sharply due to mix pressure and higher G&A. Backlog decreased to $37.9 million, with notable softness in periscopes and laser filters. Shares have outperformed over the past year and trade at 1.54X EV/sales and 8.68X EV/EBITDA, discounts to industry.
(You can read the full research report on Optex Systems here >>>)
Other noteworthy reports we are featuring today include Micron Technology, Inc. (MU), S&P Global Inc. (SPGI) and Quanta Services, Inc. (PWR).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Story Continues
Today's Must Read
UnitedHealth (UNH) Rides On Solid Optum Business, Rising Costs Hurt
Merck's (MRK) Growth Outlook Stable Despite Keytruda Patent Cliff
Qualcomm (QCOM) Rides on Automotive Traction, Edge AI Adoption
Featured Reports
Rising AI Spending, Inventory Improvement Aid Micron (MU)
Per the Zacks analyst, Micron is benefiting from the boom in AI spending and inventory improvement across multiple end markets, which are fueling the demand for memory chips.
IHS Markit Buyout Aids S and P Global (SPGI) Amid Rising Costs
Per the Zacks analyst, the IHS Markit buyout has significantly enhanced S and P Global's data and analytics offerings. However, escalating expenses is worrisome.
Investments Aid American Electric (AEP) Amid Regulatory Challenges
Per the Zacks analyst, American Electric makes systematic investments to maintain and upgrade the reliability of its infrastructure. Yet, ongoing regulatory challenges continue to remain concerns.
Edwards (EW) Rides on Solid TMTT Sales Amid Dull Macro Scenario
The Zacks Analyst is impressed with Edwards' strong TMTT sales globally, which grew 51.9% year over year in first quarter. Recent dull macroeconomic trends remain as headwind for the company.
Estee Lauder's (EL) Sales Benefit From Solid Online Business
Per the Zacks analyst, Estee Lauder is benefiting from strong online sales momentum, supported by growth across Amazon Premium Beauty, TikTok Shop and other digital platforms globally.
SharkNinja (SN) Ride Innovation and AI Momentum to Drive Global Growth
Per the Zacks analyst, SharkNinja is benefiting from strong product innovation, accelerating international growth and AI-driven efficiencies. Fiscal 2026 sales are expected to grow 11.5-12.5% y/y.
Commercial Construction Market Aids Griffon (GFF), Costs Ail
Per the Zacks analyst, Griffon is experiencing strength across its commercial construction end market driven by increase in demand for rolling steel door. However, high costs remain a woe for it.
New Upgrades
Quanta (PWR) Gains on Robust Public Spending and Acquisitions
Per the Zacks analyst, Quanta is benefiting from higher utility and large-load customer spending and acquisitions, while record backlog and expanding programmatic awards support multiyear visibility.
Expansion of Non-Mortgage Products Aids LendingTree (TREE)
Per the Zacks analyst, LendingTree's reduced dependence on mortgage-related sources of revenues and expanding product options across insurance categories is expected to support its financials.
SM Energy's (SM) Oil-Focused Operations in Premium Shale Basins Aid
Per the Zacks analyst, SM Energy's expansion of oil-focused operations in the Permian Basin, Uinta Basin and Eagle Ford regions enhances its production outlook.
New Downgrades
Rising Capital Requirement and High Debt Levels to Ail Honda (HMC)
Per the Zacks analyst, rising capital requirements tied to the joint venture with LG Energy Solution are likely to hurt the company's cash flows. High debt level also remains a concern.
Yield Pressure and Macro Woes Hurt Norwegian Cruise's (NCLH) Prospects
Per the Zacks analyst, Norwegian Cruise faces yield pressure as deployment and execution stay misaligned and bookings lag. Also, soft Europe demand, Middle East disruptions, and high fuel costs ail.
Increasing Transaction Fees Aid Cboe Global Markets (CBOE)
Per the Zacks analyst, Cboe Global is set to grow on rising transaction fees driven by trading volume growth and non-transactional revenues. However, rising expenses weighing on margin ail.
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
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Quanta Services, Inc. (PWR) : Free Stock Analysis Report
Merck & Co., Inc. (MRK) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
S&P Global Inc. (SPGI) : Free Stock Analysis Report
Optex Systems Holdings Inc. (OPXS): Free Stock Analysis Report
EVI Industries, Inc. (EVI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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- Optum Rx Introduces Industry’s First Transparent Pharmacy Care Model
May 11, 2026
Market-leading approach to client and consumer transparency further aligns incentives across patients and plan sponsors, offering consumers new affordability tools
May 11, 2026--(BUSINESS WIRE)--Today, Optum Rx announced a new pharmacy care model that fundamentally changes how pharmacy benefits are priced and delivered — replacing traditional approaches tied to drug prices set by manufacturers or prescription volume with a transparent, fee‑based structure offered to every Optum Rx PBM customer. The model is designed to fully align incentives with patients and plan sponsors, bringing greater clarity, predictability and affordability to pharmacy care — supported by digital capabilities that help patients better understand costs and make informed choices.
Dr. Patrick Conway, CEO of Optum, said, "This new Optum Rx model builds on our longstanding commitment to lowering costs and strengthening transparency by offering our clients a simpler and more predictable pharmacy system."
Under the new approach, Optum Rx clients will be offered a pricing structure with monthly, clearly defined fees per member that are independent of manufacturers’ list prices or prescription volume, eliminating spread pricing and similar practices. Every client will have transparency into Optum Rx fees — including those associated with its group purchasing organization (GPO) — with clear disclosure of payments received from pharmaceutical manufacturers. By the end of 2027, group purchasing will fully transition to flat service fees.
Jon Mahrt, CEO of Optum Rx and Chief Growth Officer of Optum, said, "By combining economic transparency for clients with digital tools that help patients shop for affordable options, we’re delivering a pharmacy system that is simple, easier to navigate and offers greater value."
In addition to new pricing structures, Optum is launching digital tools that help consumers compare pricing and know the cost of their medication before they go to the pharmacy — making it easier to make informed, cost‑conscious decisions at the point of care:
Shop MyScript notifies eligible Optum Rx patients immediately after a prescription is written, providing real‑time visibility into pricing, pharmacy options and delivery choices before the prescription is filled. This enables patients to make informed selections earlier in the process and helps reduce prescription abandonment. Price Wise displays a full cost breakdown — including the drug price and a clearly defined service fee — offering an all‑in price through a partner pharmacy. Consumers purchasing medications without using their benefits can see the total cost upfront, without unexpected charges at checkout.
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"Greater transparency and predictability in pharmacy benefits helps our industry manage costs more effectively," said Nancy Price, Vice President Employee Benefits Strategic Sourcing at HealthTrust. "We appreciate Optum Rx for being responsive and collaborative in this effort to advance pharmacy care."
Advancing a modern, affordable pharmacy system built to last
Today’s announcement builds on a series of recent actions Optum Rx has taken to modernize pharmacy care and improve affordability across the system:
In January 2025, Optum Rx committed to passing through 100% of manufacturer drug rebate discounts to clients by Jan. 1, 2028. Since the beginning of 2025, Optum Rx has eliminated 33% of drug reauthorizations — representing 11% of pharmacy prior authorizations — for a list of nearly 270 chronic condition medications. This list will continue to be reviewed and expanded over time. In March 2025, Optum Rx introduced pharmacy payment terms designed to reflect the actual costs pharmacies incur to deliver care. Through partnerships with Pharmacy Services Administration Organizations (PSAOs), 100% of community and independent pharmacies in the Optum Rx network transitioned to these cost‑based arrangements. In September 2025, Optum Rx increased brand‑name drug reimbursement for 2,300 community and independent pharmacies not affiliated with a PSAO, chain or other entity.
About Optum Rx
Optum Rx® is a pharmacy care services company reimagining pharmacy benefits to be simpler, more transparent and more affordable. Serving clients and nearly 61 million people, Optum Rx delivers pharmacy care designed to improve health outcomes and lower total cost of care through clear, fee-based pricing, clinical expertise, specialty and infusion services and innovative digital tools that help people make more informed decisions about their medications. With a nationwide network of more than 67,000 community pharmacies and state-of-the-art home delivery pharmacies, Optum Rx is helping reduce friction in pharmacy care and better connect people to the medications they need — at a cost they can understand and trust. Optum Rx is part of Optum®, an integrated health services company working to help make the health system work better for everyone. For more information, visit optum.com/optumrx.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260511088754/en/
Contacts
Media contact:
optumnews@optum.com
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- Advanced Micro Devices and Other Growth Stocks Are Flying High. History Says Hold on to Them.
May 11, 2026
If it feels like growth stocks can’t continue their outperformance much longer, ignore that feeling. The Vanguard S&P 500 Growth Index Fund Exchange-Traded Fund, home to companies with high sales growth including Nvidia Advanced Micro Devices Microsoft and Eli Lilly is up 13% in the past month. A couple of factors have driven the performance of the growth stocks.
Continue Reading
- Optum Rx Introduces Industry's First Transparent Pharmacy Care Model
May 11, 2026 · businesswire.com
--(BUSINESS WIRE)--Today, Optum Rx announced a new pharmacy care model that fundamentally changes how pharmacy benefits are priced and delivered — replacing traditional approaches tied to drug prices set by manufacturers or prescription volume with a transparent, fee‑based structure offered to every Optum Rx PBM customer. The model is designed to fully align incentives with patients and plan sponsors, bringing greater clarity, predictability and affordability to pharmacy care — supported by dig.
- OPTUM RX INTRODUCES INDUSTRY'S FIRST TRANSPARENT PHARMACY CARE MODEL
May 11, 2026
--(BUSINESS WIRE)--TODAY, OPTUM RX ANNOUNCED A NEW PHARMACY CARE MODEL THAT FUNDAMENTALLY CHANGES HOW PHARMACY BENEFITS ARE PRICED AND DELIVERED — REPLACING TRADITIONAL APPROACHES TIED TO DRUG PRICES SET BY MANUFACTURERS OR PRESCRIPTION VOLUME WITH A TRANSPARENT, FEE‑BASED STRUCTURE OFFERED TO EVERY OPTUM RX PBM CUSTOMER. THE MODEL IS DESIGNED TO FULLY ALIGN INCENTIVES WITH PATIENTS AND PLAN SPONSORS, BRINGING GREATER CLARITY, PREDICTABILITY AND AFFORDABILITY TO PHARMACY CARE — SUPPORTED BY DIG.
- Nvidia Tops Buy Point. 5 Dow Stocks Near Entries Share This Flaw
May 11, 2026
Nvidia topped a buy point on Monday after Boeing provided an entry on Friday, among five Dow stocks to watch near buy points this week. Nvidia stock and its peers have rallied in a soaring stock market, with earnings out of the way for some of these names but not for others. Walmart, Goldman Sachs and UnitedHealth also make the cut.
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- Notable healthcare headlines for the week: UnitedHealth, Pfizer, and CVS Health in focus
May 10, 2026
Wall Street’s major market averages ended higher on Friday as investors digested the latest nonfarm payrolls print and sidestepped the ongoing tensions in the Middle East.
The blue-chip Dow added +0.1%, the benchmark S&P 500 closed +0.8%, and the tech-focused Nasdaq Composite finished +1.7%.
However, the S&P 500 Health Care Index Sector (XLV [https://seekingalpha.com/symbol/XLV]) slipped above 1.15% during the week.
The top S&P 500 healthcare gainers and losers for the last week are as follows:
TOP GAINERS:
DaVita (DVA [https://seekingalpha.com/symbol/DVA]) +31%
Moderna (MRNA [https://seekingalpha.com/symbol/MRNA]) +19.75%
Humana (HUM [https://seekingalpha.com/symbol/HUM]) +17.69%
Revvity (RVTY [https://seekingalpha.com/symbol/RVTY]) +16.52%
Waters (WAT [https://seekingalpha.com/symbol/WAT]) +15.63%
TOP LOSERS:
Zoetis (ZTS [https://seekingalpha.com/symbol/ZTS]) -27.44%
Cencora (COR [https://seekingalpha.com/symbol/COR]) -14.12%
Bio-Techne (TECH [https://seekingalpha.com/symbol/TECH]) -12.10%
Insulet (PODD [https://seekingalpha.com/symbol/PODD]) -11.93%
Mettler-Toledo International (MTD [https://seekingalpha.com/symbol/MTD]) -11.26%
Here are some of the important healthcare stories from this week:
UNITEDHEALTHCARE CUTS PRIOR AUTHORIZATION REQUIREMENTS BY 30%
UnitedHealthcare (UNH [https://seekingalpha.com/symbol/UNH]) on Tuesday said [https://seekingalpha.com/news/4585385-unitedhealth-to-ease-access-to-tests-surgeries-and-therapy-with-30-cut-in-prior-authorizations-wsj-reports] that it would eliminate authorization requirements for 30% of healthcare services that previously required insurer approval.
Currently, prior authorization is required for only 2% of UnitedHealthcare medical services. Of the authorizations that are submitted, around 92% are approved in less than 24 hours, on average. Within Medicare Advantage, UnitedHealthcare has fewer prior authorization requirements than any other insurer, the company said [https://seekingalpha.com/pr/20499938-unitedhealthcare-cuts-prior-authorization-requirements-by-30-percent#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews].
By the end of 2026, UnitedHealthcare will eliminate an additional 30% of remaining prior authorizations, including select outpatient surgeries, some diagnostic tests like echocardiograms, and certain outpatient therapies and chiropractic care.
PFIZER TOPS Q1 ESTIMATES, MAINTAINS GUIDANCE
Pfizer (PFE [https://seekingalpha.com/symbol/PFE]) topped [https://seekingalpha.com/news/4585370-pfizer-tops-q1-estimates-maintains-guidance] Wall Street estimates with its first-quarter results and reaffirmed its full-year outlook.
The New York-based pharma giant generated adjusted EPS of $0.75 (-18% Y/Y) on revenue of $14.5B, a 5% rise compared to the prior-year quarter, reflecting an operational increase of $304M, or 2%.
The company also reaffirmed its 2026 sales guidance of $59.5B to $62.5B, in line with the average analyst expectation of $61.37B [https://seekingalpha.com/symbol/PFE/earnings/estimates#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]. Adjusted diluted EPS is projected to be in the range of $2.80 to $3.00 (vs. consensus of $2.96).
AMAZON TO OFFER NOVO’S OZEMPIC PILL VIA SAME-DAY DELIVERY, KIOSKS
Amazon (AMZN [https://seekingalpha.com/symbol/AMZN]) announced [https://seekingalpha.com/news/4588376-amazon-to-offer-novo-ozempic-pill] on Thursday that Novo Nordisk’s (NVO [https://seekingalpha.com/symbol/NVO]) newly launched oral diabetes therapy, the Ozempic pill, will be available for same-day delivery through its pharmacy division and dispensed at its One Medical locations via in-office kiosks.
The Danish drugmaker launched the Ozempic pill earlier this week, having rebranded its previous oral GLP-1 therapy, Rybelsus. [https://seekingalpha.com/news/4583902-novo-nordisk-readies-u-s-launch-of-ozempic-pill#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]
Amazon (AMZN [https://seekingalpha.com/symbol/AMZN]) stated that, regardless of Prime membership, patients will be able to access the once-daily therapy through same-day delivery, which is available in nearly 3,000 U.S. cities and towns.
The company plans to expand the same-day service to nearly 4,500 cities and towns by the end of 2026.
In other news of note, Novo Nordisk (NVO [https://seekingalpha.com/symbol/NVO]) raised [https://seekingalpha.com/news/4586640-novo-nordisk-says-oral-wegovy-success-to-soften-sales-decline] its outlook for the year after strong early demand for its oral Wegovy pill helped revive momentum in its obesity business.
Excluding the 340B provision reversal, the Danish drugmaker now expects adjusted sales and operating profit to contract between 4% and 12%, compared with an earlier forecast of a 5%–13% Y/Y decline.
Novo said first-quarter sales jumped 32% on a constant currency basis to reach DKK 96.8B, positively impacted by a provision reversal related to the 340B Drug Pricing Program in the US. On an adjusted basis, sales fell 4% at CER, driven by lower realized prices, partly offset by GLP-1 volume growth across geographies.
Operating profit surged 65% to DKK 59.6B at CER.
CVS HEALTH SPIKES AS INSURANCE BUSINESS DRIVES Q1 BEAT
Shares of CVS Health (CVS [https://seekingalpha.com/symbol/CVS]) jumped [https://seekingalpha.com/news/4586729-cvs-health-stock-rises-q1-2026-beat] over 7% on Wednesday after the managed care firm raised its full-year outlook following better-than-expected Q1 2026 earnings, largely driven by its Health Care Benefits segment, which houses its health insurer Aetna. [https://seekingalpha.com/news/4586724-cvs-non-gaap-eps-of-2_57-beats-by-0_36-revenue-of-100_4b-beats-by-5_38b#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]
The Woonsocket, Rhode Island-based healthcare giant increased its outlook for adjusted earnings per share to $7.30-$7.50 from $7.00-$7.20, exceeding the $7.16 projected by analysts, citing outperformance in its Health Care Benefits and Pharmacy & Consumer Wellness segments.
For the quarter, CVS recorded $100.4B in revenue with ~6% YoY growth as its Health Care Benefits segment added $36.0B to the topline with ~3% YoY growth thanks mainly to its government business.
ANGELINI PHARMA TO BUY CATALYST PHARMACEUTICALS FOR $4.1B
Angelini Pharma agreed [https://seekingalpha.com/news/4588004-angelini-pharma-to-buy-catalyst-pharmaceuticals-for-41b] to acquire all outstanding shares of Catalyst Pharmaceuticals (CPRX [https://seekingalpha.com/symbol/CPRX]) for $31.50 per share in cash, for a total equity value of approximately $4.1B.
The deal has been unanimously approved by the boards of directors of both companies and is expected to close in the third quarter of 2026. The consideration represents a premium of 28% to Catalyst’s 30-day volume-weighted average trading price as of April 22, 2026.
Following completion of the acquisition, Angelini Pharma plans to integrate Catalyst’s portfolio and commercial infrastructure with its expertise and products in Brain Health to develop a next-generation therapeutic platform in Rare Diseases.
The transaction [https://seekingalpha.com/pr/20504768-angelini-pharma-to-acquire-catalyst-pharmaceuticals-for-4_1-billion-usd-3_5-billion-euros#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]will be carried out with the participation of Blackstone (BX [https://seekingalpha.com/symbol/BX]) funds and select international partners and will be financed with the support of BNP Paribas.
MORE ON STATE STREET HEALTH CARE SELECT SECTOR SPDR ETF
* AI Revolutionizing Biopharma: Faster, Better, Cheaper [https://seekingalpha.com/article/4898092-ai-revolutionizing-biopharma-faster-better-cheaper]
* Trump's Psychedelics Stance Reignites Sector - How Investors Can Benefit [https://seekingalpha.com/article/4894631-trump-psychedelics-stance-reignites-sector-how-investors-can-benefit]
* Routine Vaccines Okay For Now: Investment Implications Of The Court Decision [https://seekingalpha.com/article/4883587-routine-vaccines-okay-for-now-investment-implications-of-the-court-decision]
* Tech carried the S&P 500 since the war began, according to Deutsche Bank [https://seekingalpha.com/news/4587241-tech-carried-the-sp-500-since-the-war-began-according-to-deutsche-bank]
* ETFs with heavy CVS exposure gain traction after earnings beat [https://seekingalpha.com/news/4586934-etfs-with-heavy-cvs-exposure-gain-traction-after-earnings-beat]
- Nvidia, Boeing Lead 5 Dow Stocks Near Buy Points. They Share This Flaw.
May 9, 2026
Nvidia and Boeing lead five Dow stocks to watch near buy points this week. Nvidia stock and its peers have rallied in a soaring stock market, with earnings out of the way for some of these names but not for others. Walmart, Goldman Sachs and UnitedHealth also make the cut.
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- UnitedHealth Group (UNH) Valuation Check After Earnings Beat Guidance Lift And Prior Authorization Cuts
May 9, 2026
Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide.
UnitedHealth Group (UNH) has been in focus after first quarter 2026 earnings, a higher full year earnings outlook, and plans to cut prior authorization requirements, while analysts highlighted the stock following these updates.
See our latest analysis for UnitedHealth Group.
The stock has reacted strongly to the first quarter earnings update and guidance lift, with a 30 day share price return of 20.15% and 90 day share price return of 33.65%. However, the 1 year total shareholder return is slightly negative, suggesting recent momentum is rebuilding from a weaker multi year period.
If UnitedHealth's rebound has you rethinking opportunities in healthcare and technology, it could be worth scanning for other potential beneficiaries in this space through our 35 healthcare AI stocks.
With UNH up more than 20% in 30 days and trading only about 5% below the average analyst price target, the key question is whether recent strength still leaves value on the table or if the market is already pricing in future growth.
Most Popular Narrative: 24.1% Undervalued
UnitedHealth Group's most followed valuation narrative pegs fair value at $486.86 per share, comfortably above the recent $369.74 close. This is described as a bullish valuation gap according to WallStreetWontons.
UNH serves approximately 53 million members globally, including 5 million outside the U.S. Its scale in managed care, along with investments in its Optum franchises, positions it as a healthcare services powerhouse.
Read the complete narrative.
Want to see what kind of revenue build and profit margin profile is baked into that fair value, and how Optum and UnitedHealthcare each pull their weight?
According to WallStreetWontons, the narrative describes a discounted cash flow style view that relies on steady premium revenue, a broad service mix across Optum and UnitedHealthcare, and profitability anchored around mid single digit margins, all evaluated at a 6.06% discount rate and a future P/E of 25x.
Result: Fair Value of $486.86 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this hinges on regulatory outcomes and competitive pressure, either of which could compress margins or disrupt the premium and Optum driven assumptions in that valuation.
Find out about the key risks to this UnitedHealth Group narrative.
Next Steps
If this mix of optimism and concern around UnitedHealth feels familiar, consider using it as a prompt to act quickly and test the assumptions yourself using the 3 key rewards and 2 important warning signs
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include UNH.
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