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What's in the Cards for Humana (HUM) Stock in Q2 Earnings?
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Humana Inc.’s (HUM - Free Report) second-quarter 2018 results, scheduled to be reported on Aug 1, 2018, has likely witnessed an increase in individual Medicare Advantage membership strength, driven by strong segmental performances. Additionally, the company has likely expanded into different geographical regions of their value-based primary care and Management Services Organization (MSO) support models.
The company expects its second-quarter earnings to be about $1.01.
Other Factors
The company might have continued with its strategic acquisitions to add their capabilities, mainly in the primary care arena.
The continuous and expanded presence in the state would boost the company to bring its integrated care delivery strategy to more Medicaid beneficiaries, thus aiding Medicaid business growth.
The company is expected to have seen a rise in individual Medicare Advantage membership count. Per the Zacks Consensus Estimate, Individual Medicare Advantage membership should be 3 million, up 6.5% year over year. This has been mostly driven by solid segmental performances by Group and Specialty segment, Retails segments and Medicare Advantage business.
Earnings Surprise History
The company boasts a stellar earnings surprise history, having surpassed estimates in all the trailing four quarters with an average positive surprise of 6.16%. This is depicted in the chart below:
Our proven model does not conclusively show that Humana is likely to beat on earnings this to-be-reported quarter. This is because the stock needs to have the right combination of a positive Earnings ESPand a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you can see below.
Earnings ESP: Humana has an Earnings ESP of -1.38%. This is because the Most Accurate Estimate is pegged at $3.74, lower than the Zacks Consensus Estimate of $3.79. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Humana carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP. However, a stock needs to have a positive ESP to be confident about a likely earnings surprise. Therefore, this combination leaves surprise prediction inconclusive.
We caution against the Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Some stocks worth considering from the medical sector with the perfect combination of elements to surpass estimates in the next releases are as follows:
Bluebird bio, Inc. (BLUE - Free Report) has an Earnings ESP of +15.47%. This Zacks #3 Ranked company is set to report second-quarter earnings on Aug 1.
DENTSPLY SIRONA Inc. (XRAY - Free Report) is set to report second-quarter 2018 earnings on Aug 7. The stock has an Earnings ESP of +1.69% and a Zacks Rank of 3.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
What's in the Cards for Humana (HUM) Stock in Q2 Earnings?
Humana Inc.’s (HUM - Free Report) second-quarter 2018 results, scheduled to be reported on Aug 1, 2018, has likely witnessed an increase in individual Medicare Advantage membership strength, driven by strong segmental performances. Additionally, the company has likely expanded into different geographical regions of their value-based primary care and Management Services Organization (MSO) support models.
The company expects its second-quarter earnings to be about $1.01.
Other Factors
The company might have continued with its strategic acquisitions to add their capabilities, mainly in the primary care arena.
The continuous and expanded presence in the state would boost the company to bring its integrated care delivery strategy to more Medicaid beneficiaries, thus aiding Medicaid business growth.
The company is expected to have seen a rise in individual Medicare Advantage membership count. Per the Zacks Consensus Estimate, Individual Medicare Advantage membership should be 3 million, up 6.5% year over year. This has been mostly driven by solid segmental performances by Group and Specialty segment, Retails segments and Medicare Advantage business.
Earnings Surprise History
The company boasts a stellar earnings surprise history, having surpassed estimates in all the trailing four quarters with an average positive surprise of 6.16%. This is depicted in the chart below:
Humana Inc. Price and EPS Surprise
Humana Inc. Price and EPS Surprise | Humana Inc. Quote
What the Quantitative Model States
Our proven model does not conclusively show that Humana is likely to beat on earnings this to-be-reported quarter. This is because the stock needs to have the right combination of a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you can see below.
Earnings ESP: Humana has an Earnings ESP of -1.38%. This is because the Most Accurate Estimate is pegged at $3.74, lower than the Zacks Consensus Estimate of $3.79. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Humana carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP. However, a stock needs to have a positive ESP to be confident about a likely earnings surprise. Therefore, this combination leaves surprise prediction inconclusive.
We caution against the Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Some stocks worth considering from the medical sector with the perfect combination of elements to surpass estimates in the next releases are as follows:
AquaBounty Technologies, Inc. (AQB - Free Report) is set to report second-quarter earnings on Aug 3. This Zacks Rank #3 (Hold) stock has an Earnings ESP of +2.70%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bluebird bio, Inc. (BLUE - Free Report) has an Earnings ESP of +15.47%. This Zacks #3 Ranked company is set to report second-quarter earnings on Aug 1.
DENTSPLY SIRONA Inc. (XRAY - Free Report) is set to report second-quarter 2018 earnings on Aug 7. The stock has an Earnings ESP of +1.69% and a Zacks Rank of 3.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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