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Humana (HUM) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest trading session, Humana (HUM - Free Report) closed at $519.87, marking a -0.83% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.01%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.25%.
Shares of the health insurer witnessed a gain of 10.59% over the previous month, beating the performance of the Medical sector with its loss of 2.91% and the S&P 500's loss of 1.6%.
The investment community will be closely monitoring the performance of Humana in its forthcoming earnings report. The company is scheduled to release its earnings on November 1, 2023. In that report, analysts expect Humana to post earnings of $7.14 per share. This would mark year-over-year growth of 3.78%. Simultaneously, our latest consensus estimate expects the revenue to be $25.34 billion, showing a 11.16% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $28.29 per share and a revenue of $102.34 billion, representing changes of +12.08% and +10.19%, respectively, from the prior year.
Any recent changes to analyst estimates for Humana should also be noted by investors. 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. As of now, Humana holds a Zacks Rank of #3 (Hold).
Digging into valuation, Humana currently has a Forward P/E ratio of 18.53. For comparison, its industry has an average Forward P/E of 17.11, which means Humana is trading at a premium to the group.
It is also worth noting that HUM currently has a PEG ratio of 1.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Medical - HMOs industry was having an average PEG ratio of 1.17.
The Medical - HMOs industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 31% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Humana (HUM) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Humana (HUM - Free Report) closed at $519.87, marking a -0.83% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.01%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.25%.
Shares of the health insurer witnessed a gain of 10.59% over the previous month, beating the performance of the Medical sector with its loss of 2.91% and the S&P 500's loss of 1.6%.
The investment community will be closely monitoring the performance of Humana in its forthcoming earnings report. The company is scheduled to release its earnings on November 1, 2023. In that report, analysts expect Humana to post earnings of $7.14 per share. This would mark year-over-year growth of 3.78%. Simultaneously, our latest consensus estimate expects the revenue to be $25.34 billion, showing a 11.16% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $28.29 per share and a revenue of $102.34 billion, representing changes of +12.08% and +10.19%, respectively, from the prior year.
Any recent changes to analyst estimates for Humana should also be noted by investors. 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. As of now, Humana holds a Zacks Rank of #3 (Hold).
Digging into valuation, Humana currently has a Forward P/E ratio of 18.53. For comparison, its industry has an average Forward P/E of 17.11, which means Humana is trading at a premium to the group.
It is also worth noting that HUM currently has a PEG ratio of 1.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Medical - HMOs industry was having an average PEG ratio of 1.17.
The Medical - HMOs industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 31% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.