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Humana (HUM) Increases Yet Falls Behind Market: What Investors Need to Know
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In the latest trading session, Humana (HUM - Free Report) closed at $339.08, marking a +0.34% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.51%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.58%.
The health insurer's stock has dropped by 7.76% in the past month, falling short of the Medical sector's gain of 2.54% and the S&P 500's gain of 2.94%.
The investment community will be closely monitoring the performance of Humana in its forthcoming earnings report. The company is predicted to post an EPS of $6.06, indicating a 35.39% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.35 billion, up 6.01% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $16.05 per share and a revenue of $111.87 billion, demonstrating changes of -38.48% and +7.84%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Humana. Recent revisions tend to reflect the latest near-term business trends. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.09% rise in the Zacks Consensus EPS estimate. Currently, Humana is carrying a Zacks Rank of #5 (Strong Sell).
Investors should also note Humana's current valuation metrics, including its Forward P/E ratio of 21.06. This signifies a premium in comparison to the average Forward P/E of 16.32 for its industry.
Also, we should mention that HUM has a PEG ratio of 1.98. 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. HUM's industry had an average PEG ratio of 1.08 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 214, placing it within the bottom 16% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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) Increases Yet Falls Behind Market: What Investors Need to Know
In the latest trading session, Humana (HUM - Free Report) closed at $339.08, marking a +0.34% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.51%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, added 0.58%.
The health insurer's stock has dropped by 7.76% in the past month, falling short of the Medical sector's gain of 2.54% and the S&P 500's gain of 2.94%.
The investment community will be closely monitoring the performance of Humana in its forthcoming earnings report. The company is predicted to post an EPS of $6.06, indicating a 35.39% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.35 billion, up 6.01% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $16.05 per share and a revenue of $111.87 billion, demonstrating changes of -38.48% and +7.84%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Humana. Recent revisions tend to reflect the latest near-term business trends. 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.09% rise in the Zacks Consensus EPS estimate. Currently, Humana is carrying a Zacks Rank of #5 (Strong Sell).
Investors should also note Humana's current valuation metrics, including its Forward P/E ratio of 21.06. This signifies a premium in comparison to the average Forward P/E of 16.32 for its industry.
Also, we should mention that HUM has a PEG ratio of 1.98. 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. HUM's industry had an average PEG ratio of 1.08 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 214, placing it within the bottom 16% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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.