Q3 Rundown: Cencora (NYSE:COR) Vs Other Health Insurance Providers Stocks

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at health insurance providers stocks, starting with Cencora (NYSE:COR).

Upfront premiums collected by health insurers lead to reliable revenue, but profitability ultimately depends on accurate risk assessments and the ability to control medical costs. Health insurers are also highly sensitive to regulatory changes and economic conditions such as unemployment. Going forward, the industry faces tailwinds from an aging population, increasing demand for personalized healthcare services, and advancements in data analytics to improve cost management. However, continued regulatory scrutiny on pricing practices, the potential for government-led reforms such as expanded public healthcare options, and inflation in medical costs could add volatility to margins. One big debate among investors is the long-term impact of AI and whether it will help underwriting, fraud detection, and claims processing or whether it may wade into ethical grey areas like reinforcing biases and widening disparities in medical care.

The 12 health insurance providers stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 1.1% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Cencora (NYSE:COR)

Formerly known as AmerisourceBergen until its 2023 rebranding, Cencora (NYSE:COR) is a global pharmaceutical distribution company that connects manufacturers with healthcare providers while offering logistics, data analytics, and consulting services.

Cencora reported revenues of $83.73 billion, up 5.9% year on year. This print exceeded analysts’ expectations by 0.5%. Overall, it was a satisfactory quarter for the company with a narrow beat of analysts’ full-year EPS guidance estimates.

“Cencora furthered key initiatives in fiscal 2025 to fortify our leading position in healthcare, most notably by enhancing our position in specialty through our acquisition of RCA as well as the decision to strategically refocus our existing business portfolio,” said Bob Mauch, President and Chief Executive Officer of Cencora.

Cencora delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 1.4% since reporting and currently trades at $339.81.

Is now the time to buy Cencora? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: CVS Health (NYSE:CVS)

With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE:CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary.

CVS Health reported revenues of $102.9 billion, up 7.8% year on year, outperforming analysts’ expectations by 4.1%. The business had an exceptional quarter with an impressive beat of analysts’ same-store sales estimates and a solid beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3.8% since reporting. It currently trades at $79.06.

Is now the time to buy CVS Health? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Molina Healthcare (NYSE:MOH)

Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE:MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.

Molina Healthcare reported revenues of $11.48 billion, up 11% year on year, exceeding analysts’ expectations by 4.6%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS guidance for next quarter estimates.

Molina Healthcare delivered the weakest full-year guidance update in the group. The company lost 118,000 customers and ended up with a total of 5.63 million. As expected, the stock is down 15.8% since the results and currently trades at $163.97.

Read our full analysis of Molina Healthcare’s results here.

UnitedHealth (NYSE:UNH)

With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE:UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.

UnitedHealth reported revenues of $113.2 billion, up 12.2% year on year. This print was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also logged a narrow beat of analysts’ customer base estimates but revenue in line with analysts’ estimates.

The company kept the number of customers flat at a total of 54.08 million. The stock is down 10.4% since reporting and currently trades at $327.08.

Read our full, actionable report on UnitedHealth here, it’s free for active Edge members.

Clover Health (NASDAQ:CLOV)

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.

Clover Health reported revenues of $496.7 million, up 50.1% year on year. This result beat analysts’ expectations by 5.4%. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ revenue estimates but full-year EBITDA guidance missing analysts’ expectations significantly.

Clover Health achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The company added 2,903 customers to reach a total of 109,226. The stock is down 27.6% since reporting and currently trades at $2.55.

Read our full, actionable report on Clover Health here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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