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Humana (HUM) Gains As Market Dips: What You Should Know

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In the latest trading session, Humana (HUM - Free Report) closed at $493.91, marking a +0.67% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.15%.

Heading into today, shares of the health insurer had lost 1.01% over the past month, outpacing the Medical sector's loss of 7.73% and the S&P 500's loss of 10.24% in that time.

Wall Street will be looking for positivity from Humana as it approaches its next earnings report date. The company is expected to report EPS of $6.21, up 28.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.67 billion, up 9.55% from the year-ago period.

HUM's full-year Zacks Consensus Estimates are calling for earnings of $24.96 per share and revenue of $92.9 billion. These results would represent year-over-year changes of +20.93% and +11.84%, respectively.

Investors should also note any recent changes to analyst estimates for Humana. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.58% higher. Humana currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Humana has a Forward P/E ratio of 19.66 right now. This valuation marks a premium compared to its industry's average Forward P/E of 18.8.

Meanwhile, HUM's PEG ratio is currently 1.43. 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 1.12 based on yesterday's closing prices.

The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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