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Humana (HUM) Dips More Than Broader Market: What You Should Know

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Humana (HUM - Free Report) closed at $459.30 in the latest trading session, marking a -0.31% move from the prior day. This change lagged the S&P 500's 0.15% loss on the day. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.09%.

Shares of the health insurer witnessed a loss of 3.33% over the previous month, trailing the performance of the Medical sector with its gain of 6.58% and the S&P 500's gain of 3.5%.

Investors will be eagerly watching for the performance of Humana in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 5, 2024. In that report, analysts expect Humana to post earnings of $2.13 per share. This would mark year-over-year growth of 31.48%. Our most recent consensus estimate is calling for quarterly revenue of $25.38 billion, up 13.12% from the year-ago period.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Humana. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. As of now, Humana holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Humana is currently exchanging hands at a Forward P/E ratio of 14.67. For comparison, its industry has an average Forward P/E of 14.67, which means Humana is trading at no noticeable deviation to the group.

It's also important to note that HUM currently trades at a PEG ratio of 1.09. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - HMOs industry currently had an average PEG ratio of 1.04 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. With its current Zacks Industry Rank of 71, this industry ranks in the top 29% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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