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Humana Inc. (HUM), headquartered in Louisville, Kentucky, is a leading health and well-being company committed to offering a wide range of insurance products and health services. With a market cap of $42.87 billion, HUM plays a crucial role in the healthcare industry, providing innovative solutions in medical insurance, wellness programs, and healthcare delivery. Competing with other major health insurance companies like UnitedHealth Group (UNH), Humana continues to advance healthcare quality and accessibility through its dedication to member-centered care and comprehensive health management strategies.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Humana fits this criterion perfectly, signifying its substantial size, stability, and influence in the healthcare industry.
HUM shares are trading 32.9% below their 52-week high of $530.54, which they hit on Oct. 17, 2023. HUM has gained 2.5% over the past three months, outperforming the Health Care Select Sector SPDR Fund (XLV), which has gained less than 1% over the same time frame.
In the long term, HUM is down 22.3% on a YTD basis, and the shares have declined 20.2% over the past 52 weeks. In comparison, the XLV gained 7.5% in 2024 and rallied 11.1% over the past year.
To confirm the recent bullish price trend, HUM has been trading above its 50-day moving average since early May. However, it has been trading below its 200-day moving average since early December 2023.
HUM reported Q1 earnings on Apr. 24; the stock declined 3.7% that day. The company reported a net income of $741 million, translating to a profit of $6.11 per share. Adjusted earnings were $7.23 per share, surpassing Wall Street expectations of $6.02 per share. HUM’s adjusted revenue at $29.33 billion also exceeded the forecast of $28.6 billion. Humana anticipates full-year earnings to reach $16 per share.
Highlighting the contrast in performance, rival UNH has outperformed HUM, declining 8% on a YTD basis.
With its recent outperformance relative to XLV, analysts are moderately optimistic about HUM's prospects. The stock has a consensus rating of "Moderately Buy" from 22 analysts in coverage. The mean price target of $374.25 reflects a 5.2% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
