Wolfe: Managed Care Underearns Targets up 400%

Wolfe Research finds major managed care firms underperform target margins by 34% to 400% in 2026.
Molina Healthcare, Humana, and Centene show earnings per share 200%‑400% below targets due to Medicaid and Medicare Advantage pressures.
CVS Health, Elevance Health, and UnitedHealth also miss targets at 34%, 63% and 46% respectively, with CVS flagged as top pick.
Wolfe expects Medicare Advantage and Medicaid margins to improve, citing cost trend stabilization and potential regulatory changes through 2030.