UNH Outshines CVS as Stronger Investment Option

CVS Health and UnitedHealth Group are two of the biggest players in the US health insurance industry. CVS has made significant progress with Aetna's margin recovery, driven by Pharmacy & Consumer Wellness momentum, and raised its 2026 financial outlook. However, Caremark is facing challenges in 2027, including 340B-related headwinds and lower expected membership.

On the other hand, UnitedHealth Group is seeing improving results across both UnitedHealthcare and Optum. The company has strong operating cash flows and higher operating earnings expectations. While CVS Health's forward sales multiple is slightly above its historical five-year median, UnitedHealth Group trades at a 35% discount to its five-year median.

Based on their respective historical multiples, UNH currently appears more attractively valued than CVS while also delivering a stronger six-month return. The Zacks Consensus Estimate for UNH's 2026 EPS has risen 8.4%, compared to 7.1% for CVS Health. UnitedHealth Group carries a Zacks Rank #1 (Strong Buy), while CVS carries a Zacks Rank #3 (Hold).