Shares of Humana Inc. (HUM - Free Report) scaled a 52-week high of $309.51 in Jul 6’s trading session before closing a tad lower at $309.02. This uptrend was supported by the company’s recent joint acquisition of Kindred Healthcare.
Year to date, the stock has rallied nearly 25%, outperforming its industry’s growth of 12.1%. Now let’s dig deeper to analyze the reasons behind the company’s stock appreciation.
Acquisition of Kindred Healthcare: The company recently announced that it has completed its acquisition of Kindred Healthcare, jointly with TPG Capital and Welsh, Carson, Anderson & Stowe. With this agreement, Kindred Healthcare will be operated and owned by TPG and WCAS while Kindred at Home will be run as a standalone company by Humana, owning 40 % stake in it. Humana will enjoy a better geographic coverage with nearly 65% overlapping via its individual Medicare Advantage Membership. The transaction would provide the company with a better geographic and clinical scale in a capital efficient manner and also reduce its upfront capital outlay. Additionally, this would eradicate its exposure to non-core assets.
Rating Action: Recently, A.M. Best affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” for most of Humana’s insurance subsidiaries. The agency has also affirmed the Long-Term ICR of “bbb-” and the current Long- and Short-Term Issue Credit Ratings of Humana. The outlook of these ratings remains stable. The credit rating giant has further affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” for the dental insurance subsidiaries of Humana. The outlook of these ratings stays stable.
Further Upside Left?
This Zacks Rank #2 (Buy) has an impressive Value Score of A. The stock possesses great growth potential, also apparent from its favorable Growth Score of A. Our research shows that stocks with a Value Style Score of A or B when combined with a bullish Zacks Rank #1 or 2 offer the best opportunities in the value investing space.
Its long-term earnings growth rate stands at 13.8% better than the industry’s growth rate of 13.4%.
Other Key Picks
Investors looking for other stocks worth considering from the same industry might also check out Molina Healthcare, Inc (MOH - Free Report) , WellCare Health Plans, Inc. and Triple-S Management Corporation .
Molina provides Medicaid-related solutions to meet the health care needs of low-income families and individuals as well as to assist state agencies in their administration of the Medicaid program across the United States. Sporting a Zacks Rank #1 (Strong Buy), the stock delivered an average beat of nearly skyrocketing 112.3% in three of the last four quarters. You can see the complete list of today’s Zacks #1 Rank tocks here.
WellCare provides managed care services for government-sponsored health care programs. It carries a Zacks Rank of 2 and pulled off an average four-quarter positive surprise of 51.7%.
Triple-S provides a portfolio of managed care and related products in the commercial, Medicare and Medicaid markets in Puerto Rico, the United States. The company is a Zacks #2 Ranked stock and came up with an impressive positive earnings surprise of a whopping 260.6% over the last four quarters.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Shares of Humana Inc. (HUM - Free Report) scaled a 52-week high of $309.51 in Jul 6’s trading session before closing a tad lower at $309.02. This uptrend was supported by the company’s recent joint acquisition of Kindred Healthcare.
Year to date, the stock has rallied nearly 25%, outperforming its industry’s growth of 12.1%. Now let’s dig deeper to analyze the reasons behind the company’s stock appreciation.
Acquisition of Kindred Healthcare: The company recently announced that it has completed its acquisition of Kindred Healthcare, jointly with TPG Capital and Welsh, Carson, Anderson & Stowe. With this agreement, Kindred Healthcare will be operated and owned by TPG and WCAS while Kindred at Home will be run as a standalone company by Humana, owning 40 % stake in it. Humana will enjoy a better geographic coverage with nearly 65% overlapping via its individual Medicare Advantage Membership. The transaction would provide the company with a better geographic and clinical scale in a capital efficient manner and also reduce its upfront capital outlay. Additionally, this would eradicate its exposure to non-core assets.
Rating Action: Recently, A.M. Best affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” for most of Humana’s insurance subsidiaries. The agency has also affirmed the Long-Term ICR of “bbb-” and the current Long- and Short-Term Issue Credit Ratings of Humana. The outlook of these ratings remains stable. The credit rating giant has further affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” for the dental insurance subsidiaries of Humana. The outlook of these ratings stays stable.
Further Upside Left?
This Zacks Rank #2 (Buy) has an impressive Value Score of A. The stock possesses great growth potential, also apparent from its favorable Growth Score of A. Our research shows that stocks with a Value Style Score of A or B when combined with a bullish Zacks Rank #1 or 2 offer the best opportunities in the value investing space.
Its long-term earnings growth rate stands at 13.8% better than the industry’s growth rate of 13.4%.
Other Key Picks
Investors looking for other stocks worth considering from the same industry might also check out Molina Healthcare, Inc (MOH - Free Report) , WellCare Health Plans, Inc. and Triple-S Management Corporation .
Molina provides Medicaid-related solutions to meet the health care needs of low-income families and individuals as well as to assist state agencies in their administration of the Medicaid program across the United States. Sporting a Zacks Rank #1 (Strong Buy), the stock delivered an average beat of nearly skyrocketing 112.3% in three of the last four quarters. You can see the complete list of today’s Zacks #1 Rank tocks here.
WellCare provides managed care services for government-sponsored health care programs. It carries a Zacks Rank of 2 and pulled off an average four-quarter positive surprise of 51.7%.
Triple-S provides a portfolio of managed care and related products in the commercial, Medicare and Medicaid markets in Puerto Rico, the United States. The company is a Zacks #2 Ranked stock and came up with an impressive positive earnings surprise of a whopping 260.6% over the last four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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