UnitedHealth is Imploding: 3 Stocks That Could Eat Its Lunch

The abrupt departure of UnitedHealth (NYSE:UNH) CEO Andrew Witty this week has sent shockwaves through an already tumultuous healthcare sector. Investors in UNH stock have certainly had plenty of headwinds to deal with over the course of the past year, with the assassination of the company’s previous CEO, a rare earnings miss, and a suspension of the company’s 2025 financial forecast weighing heavily on shares of the healthcare giant, which is still valued at a market capitalization of nearly $240 billion after a whopping 48% year-to-date decline.

This sort of plunge is really noteworthy, given UnitedHealth’s size and relative stability in recent years. During times of uncertainty, many investors opt to add exposure to the healthcare sector (rather than pull investments) given the generally stable nature of this sector and the capital return profile leading companies in this space provide. And with UnitedHealth continuing to hold a top spot as a major insurer in the U.S., the company’s moat is one many investors thought couldn’t or wouldn’t be challenged by smaller competitors, at least not for the foreseeable future.

That said, this narrative has clearly shifted. Let’s dive into three of UnitedHealth’s top competitors, and why these companies most certainly now have the opportunity to do what many thought they couldn’t, and eat into UnitedHealth’s market share lead.

Humana (HUM)

Humana’s (NYSE:HUM) recent standout earnings results has led to relative strength compared to UnitedHealth, though this stock is still down roughly 12% on a year-to-date basis thus far this year.

The company brought in EPS of $11.58, beating analyst expectations by an impressive 15% margin. And while this massive earnings beat came on lower-than-expected revenue of $32.11 billion, investors were clearly enamored by the company’s ability to continue to grow its margins and re-affirm its full-year adjusted EPS guidance.

In the healthcare sector, what investors generally want most is stability. As far as Humana’s recent results are concerned, and the company’s operating efficiency and underlying fundamentals, there’s a lot to like about how this leading insurer is positioned. With Humana leading the way as one of the top players in this sector in terms of its strategic withdrawal from unprofitable markets and with a strong pricing and membership strategy, there’s good reason to believe Humana will be able to concintue to grow its market share in key Medicare and Medicaid markets long-term.

Cigna (CI)

Another top insurance player in the U.S. investors will certainly want to keep an eye on when it comes to the market share picture for this sector is Cigna (NYSE:CI). This insurance player is among the best operators in this space, and investors tend to agree with this view, considering this is the best-performing stock on this list year-to-date. Since the start of 2025, Cigna has seen its share price surge roughly 10%. That sort of market-beating performance may continue to entice long-term investors to this name, particularly those who see future market share gains as likely from Cigna.

Cigna’s core business is its commercial and pharmacy benefit business – two areas that could potentially be in the line of fire when it comes to regulators who are looking to bring down drug prices for the American people. That’s been a bipartisan issue for some time, and there’s certainly been plenty of talk on this front. But with recent announcements around drug pricing interventions from the Trump administration having less teeth than what some investors expected, this stock is one that’s performed quite well.

For investors looking for a way to play a competitor to UnitedHealth’s Optum division, this is the way I’d go. Cigna remains a key profitable player in this space that’s worth considering for long-term growth, for those who believe the healthcare industry will look much the same as it does now a few years down the line.

Centene (CNC)

Finally, let’s dive into an insurance player that’s more focused on the government-sponsored healthcare space, Centene (NYSE:CNC). The way in which Centene has positioned its business and central offerings could make the company a key beneficiary of UnitedHealth’s slide.

As a leader in Medicaid and marketplace plans, investors in Centene are hoping to benefit from continued increases in enrollment and utilization among these groups as reasons to dive into stocks like CNC. On a year-to-date basis, CNC stock is currently trading around flat for the year, suggesting investors are taking a wait-and-see approach to how regulation changes within this space moving forward.

As the demand for affordable coverage grows, I’d expect to see Centene continue to pick up market share overall, particularly among the lower-income and more vulnerable populations out there. With so much upheaval on the UnitedHealth front, Centene, Cigna and Humana each have an opportunity right now to take share and grow their businesses. In my view, these stocks are certainly worth at least keeping an eye on right now.

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