As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the health insurance providers industry, including CVS Health (NYSE: CVS) and its peers.

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 11 health insurance providers stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 5.4% on average since the latest earnings results.

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 $97.71 billion, up 4.2% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was a strong quarter for the company with a solid beat of analysts’ same-store sales estimates and an impressive beat of analysts’ EPS estimates.

The stock is up 23% since reporting and currently trades at $67.65.

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

Best Q4: Progyny (NASDAQ: PGNY)

Pioneering a data-driven approach to family building that has achieved an industry-leading patient satisfaction score of +80, Progyny (NASDAQ: PGNY) provides comprehensive fertility and family building benefits solutions to employers, helping employees access quality fertility treatments and support services.

Progyny reported revenues of $298.4 million, up 10.6% year on year, outperforming analysts’ expectations by 7.6%. The business had a very strong quarter with a solid beat of analysts’ sales volume estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.

Progyny achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 5.4% since reporting. It currently trades at $21.61.

Is now the time to buy Progyny? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: 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 $10.5 billion, up 16% year on year, exceeding analysts’ expectations by 1.9%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.

Interestingly, the stock is up 2.3% since the results and currently trades at $324.51.

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

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 $81.49 billion, up 12.8% year on year. This result topped analysts’ expectations by 5.2%. Overall, it was a very strong quarter as it also logged a narrow beat of analysts’ full-year EPS guidance estimates.

The stock is up 7.9% since reporting and currently trades at $271.60.

Read our full, actionable report on Cencora here, it’s free.

Alignment Healthcare (NASDAQ: ALHC)

Founded in 2013 with a mission to transform healthcare for seniors, Alignment Healthcare (NASDAQ: ALHC) provides Medicare Advantage health plans for seniors with features like concierge services, transportation benefits, and technology-driven care coordination.

Alignment Healthcare reported revenues of $701.2 million, up 50.7% year on year. This number beat analysts’ expectations by 3.6%. It was a very strong quarter as it also recorded EBITDA guidance for next quarter exceeding analysts’ expectations.

Alignment Healthcare pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The company added 6,800 customers to reach a total of 189,100. The stock is up 33.9% since reporting and currently trades at $18.02.

Read our full, actionable report on Alignment Healthcare here, it’s free.

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