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Humana (HUM) Gains But Lags Market: What You Should Know
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In the latest trading session, Humana (HUM - Free Report) closed at $454.34, marking a +0.2% move from the previous day. This move lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 5.28%.
Coming into today, shares of the health insurer had gained 1.58% in the past month. In that same time, the Medical sector lost 0.13%, while the S&P 500 gained 4.86%.
Investors will be hoping for strength from Humana as it approaches its next earnings release, which is expected to be August 2, 2023. On that day, Humana is projected to report earnings of $8.88 per share, which would represent year-over-year growth of 2.42%. Meanwhile, our latest consensus estimate is calling for revenue of $25.82 billion, up 9.12% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $28.28 per share and revenue of $102.16 billion. These totals would mark changes of +12.04% and +10%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Humana. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Humana is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Humana currently has a Forward P/E ratio of 16.03. This represents a discount compared to its industry's average Forward P/E of 16.44.
Meanwhile, HUM's PEG ratio is currently 1.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - HMOs was holding an average PEG ratio of 1.17 at yesterday's closing price.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.
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Humana (HUM) Gains But Lags Market: What You Should Know
In the latest trading session, Humana (HUM - Free Report) closed at $454.34, marking a +0.2% move from the previous day. This move lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 5.28%.
Coming into today, shares of the health insurer had gained 1.58% in the past month. In that same time, the Medical sector lost 0.13%, while the S&P 500 gained 4.86%.
Investors will be hoping for strength from Humana as it approaches its next earnings release, which is expected to be August 2, 2023. On that day, Humana is projected to report earnings of $8.88 per share, which would represent year-over-year growth of 2.42%. Meanwhile, our latest consensus estimate is calling for revenue of $25.82 billion, up 9.12% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $28.28 per share and revenue of $102.16 billion. These totals would mark changes of +12.04% and +10%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Humana. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Humana is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Humana currently has a Forward P/E ratio of 16.03. This represents a discount compared to its industry's average Forward P/E of 16.44.
Meanwhile, HUM's PEG ratio is currently 1.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - HMOs was holding an average PEG ratio of 1.17 at yesterday's closing price.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.