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Humana (HUM) Stock Slides as Market Rises: Facts to Know Before You Trade

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Humana (HUM - Free Report) closed the most recent trading day at $350.32, moving -0.24% from the previous trading session. This change lagged the S&P 500's 0.52% gain on the day. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq appreciated by 0.9%.

The health insurer's stock has dropped by 7.12% in the past month, falling short of the Medical sector's gain of 5.15% and the S&P 500's gain of 3.85%.

Analysts and investors alike will be keeping a close eye on the performance of Humana in its upcoming earnings disclosure. On that day, Humana is projected to report earnings of $6.49 per share, which would represent a year-over-year decline of 30.81%. Simultaneously, our latest consensus estimate expects the revenue to be $28.53 billion, showing a 6.69% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $17.28 per share and revenue of $112.31 billion, indicating changes of -33.77% and +8.27%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Humana. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. As of now, Humana holds a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Humana has a Forward P/E ratio of 20.32 right now. This indicates a premium in contrast to its industry's Forward P/E of 17.02.

Investors should also note that HUM has a PEG ratio of 1.91 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical - HMOs was holding an average PEG ratio of 1.09 at yesterday's closing price.

The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 228, putting it in the bottom 10% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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