We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Humana (HUM) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
Humana (HUM - Free Report) closed at $481.97 in the latest trading session, marking a -0.11% move from the prior day. This move lagged the S&P 500's daily gain of 1.68%. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq lost 1.7%.
Heading into today, shares of the health insurer had lost 3.88% over the past month, outpacing the Medical sector's loss of 5.62% and the S&P 500's loss of 6.68% in that time.
Investors will be hoping for strength from Humana as it approaches its next earnings release. On that day, Humana is projected to report earnings of $9.45 per share, which would represent year-over-year growth of 17.54%. Our most recent consensus estimate is calling for quarterly revenue of $26.56 billion, up 10.8% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $28.06 per share and revenue of $103.92 billion. These totals would mark changes of +11.17% and +11.9%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Humana. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 17.2 right now. Its industry sports an average Forward P/E of 13.35, so we one might conclude that Humana is trading at a premium comparatively.
Meanwhile, HUM's PEG ratio is currently 1.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HUM's industry had an average PEG ratio of 0.83 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 12% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Humana (HUM) Stock Sinks As Market Gains: What You Should Know
Humana (HUM - Free Report) closed at $481.97 in the latest trading session, marking a -0.11% move from the prior day. This move lagged the S&P 500's daily gain of 1.68%. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq lost 1.7%.
Heading into today, shares of the health insurer had lost 3.88% over the past month, outpacing the Medical sector's loss of 5.62% and the S&P 500's loss of 6.68% in that time.
Investors will be hoping for strength from Humana as it approaches its next earnings release. On that day, Humana is projected to report earnings of $9.45 per share, which would represent year-over-year growth of 17.54%. Our most recent consensus estimate is calling for quarterly revenue of $26.56 billion, up 10.8% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $28.06 per share and revenue of $103.92 billion. These totals would mark changes of +11.17% and +11.9%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Humana. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 17.2 right now. Its industry sports an average Forward P/E of 13.35, so we one might conclude that Humana is trading at a premium comparatively.
Meanwhile, HUM's PEG ratio is currently 1.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HUM's industry had an average PEG ratio of 0.83 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 12% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.