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Humana (HUM) Outpaces Stock Market Gains: What You Should Know
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Humana (HUM - Free Report) closed at $491.21 in the latest trading session, marking a +0.18% move from the prior day. This move outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.98%.
Prior to today's trading, shares of the health insurer had lost 0.21% over the past month. This has lagged the Medical sector's gain of 4.5% and the S&P 500's gain of 4.59% in that time.
Wall Street will be looking for positivity from Humana as it approaches its next earnings report date. This is expected to be April 26, 2023. In that report, analysts expect Humana to post earnings of $9.31 per share. This would mark year-over-year growth of 15.8%. Meanwhile, our latest consensus estimate is calling for revenue of $26.33 billion, up 9.84% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $28.08 per share and revenue of $103.2 billion, which would represent changes of +11.25% and +11.13%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Humana. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. Humana is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Humana has a Forward P/E ratio of 17.46 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.97.
It is also worth noting that HUM currently has a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - HMOs stocks are, on average, holding a PEG ratio of 0.96 based on yesterday's closing prices.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow HUM in the coming trading sessions, be sure to utilize Zacks.com.
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Humana (HUM) Outpaces Stock Market Gains: What You Should Know
Humana (HUM - Free Report) closed at $491.21 in the latest trading session, marking a +0.18% move from the prior day. This move outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.98%.
Prior to today's trading, shares of the health insurer had lost 0.21% over the past month. This has lagged the Medical sector's gain of 4.5% and the S&P 500's gain of 4.59% in that time.
Wall Street will be looking for positivity from Humana as it approaches its next earnings report date. This is expected to be April 26, 2023. In that report, analysts expect Humana to post earnings of $9.31 per share. This would mark year-over-year growth of 15.8%. Meanwhile, our latest consensus estimate is calling for revenue of $26.33 billion, up 9.84% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $28.08 per share and revenue of $103.2 billion, which would represent changes of +11.25% and +11.13%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Humana. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. Humana is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Humana has a Forward P/E ratio of 17.46 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.97.
It is also worth noting that HUM currently has a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - HMOs stocks are, on average, holding a PEG ratio of 0.96 based on yesterday's closing prices.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow HUM in the coming trading sessions, be sure to utilize Zacks.com.