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Strength Seen in Humana (HUM): Can Its 3.2% Jump Turn into More Strength?
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Humana (HUM - Free Report) shares soared 3.2% in the last trading session to close at $487.54. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.7% gain over the past four weeks.
The driving factor for the price rise might be stemming from movements undertaken by stock analysts of Jefferies Financial Group and Truist Financial. Jefferies Financial analysts unveiled 2024 earnings per share estimate of $31.24 for Humana, while the consensus estimate for the health insurer’s earnings for 2022 is pegged at $24.65 per share. Additionally, the price target of Humana was raised from $490.00 to $550.00 by Truist Financial’s analysts.
Earnings of UnitedHealth Group, which were released on Jul 15 before the opening bell, were impressive. UNH upped its adjusted diluted earnings per share outlook for 2022, which might have provided an impetus to the performance of other managed care providers like Humana.
This health insurer is expected to post quarterly earnings of $7.67 per share in its upcoming report, which represents a year-over-year change of +11.3%. Revenues are expected to be $23.39 billion, up 13.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Humana, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on HUM going forward to see if this recent jump can turn into more strength down the road.
Humana is part of the Zacks Medical - HMOs industry. The Joint Corp. (JYNT - Free Report) , another stock in the same industry, closed the last trading session 1.9% higher at $14.99. JYNT has returned 10.4% in the past month.
The Joint Corp.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0. Compared to the company's year-ago EPS, this represents a change of -100%. The Joint Corp. currently boasts a Zacks Rank of #3 (Hold).
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Strength Seen in Humana (HUM): Can Its 3.2% Jump Turn into More Strength?
Humana (HUM - Free Report) shares soared 3.2% in the last trading session to close at $487.54. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.7% gain over the past four weeks.
The driving factor for the price rise might be stemming from movements undertaken by stock analysts of Jefferies Financial Group and Truist Financial. Jefferies Financial analysts unveiled 2024 earnings per share estimate of $31.24 for Humana, while the consensus estimate for the health insurer’s earnings for 2022 is pegged at $24.65 per share. Additionally, the price target of Humana was raised from $490.00 to $550.00 by Truist Financial’s analysts.
Earnings of UnitedHealth Group, which were released on Jul 15 before the opening bell, were impressive. UNH upped its adjusted diluted earnings per share outlook for 2022, which might have provided an impetus to the performance of other managed care providers like Humana.
This health insurer is expected to post quarterly earnings of $7.67 per share in its upcoming report, which represents a year-over-year change of +11.3%. Revenues are expected to be $23.39 billion, up 13.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Humana, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on HUM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Humana is part of the Zacks Medical - HMOs industry. The Joint Corp. (JYNT - Free Report) , another stock in the same industry, closed the last trading session 1.9% higher at $14.99. JYNT has returned 10.4% in the past month.
The Joint Corp.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0. Compared to the company's year-ago EPS, this represents a change of -100%. The Joint Corp. currently boasts a Zacks Rank of #3 (Hold).