Humana, UnitedHealth, and Cigna shares rise as analysts highlight moderating utilization trends and AI-driven earnings upside.
Humana, UnitedHealth, and Cigna shares surged 6%, 5%, and 4%, respectively, after analysts cited softer medical cost trends and potential AI-driven efficiency gains. Humana led the rally, climbing to $348, while UnitedHealth reached $396 and Cigna hit $282.
The sector’s momentum follows reports of improving medical loss ratios, with CVS Health’s ratio dropping to 85% from 87% and operating income surging 53%. Analysts project 45% average EPS upside for the group, driven by moderating utilization and AI adoption.
The broader healthcare sector also gained, with the Health Care Select Sector SPDR Fund rising 3% as the rally extended beyond managed care.