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's Medicare Business Impresses, Public Exchange Hurts
Read MoreHide Full Article
Humana, Inc.’s (HUM - Free Report) strong Medicare business positions it for long-term growth. Medicare membership has witnessed a five-year CAGR (2011-2016) of 6.6%. The same trend continued in the first nine months of 2017 as well.
The company has been witnessing a consistent growth in revenues since 2002. In fact, the company’s revenues have increased at a CAGR of 16% over the last 11 years. The Affordable Care Act (ACA) or Obamacare contributed significantly to the company’s top line. However, the Trump administration is making every effort to repeal and replace the ACA. Despite the unpredictable nature of regulations and its impact on the industry, Humana continues to be an attractive pick for investors.
The company maintains a consistent record of earnings outperformance. In each of the last four quarters, Humana’s bottom line surpassed expectations with an average beat of 6.6%. Following strong third-quarter 2017 results, the company raised its earnings and revenue guidance for 2017. This upbeat guidance boosts shareholders' confidence in the stock.
The company aims to create shareholders’ wealth through capital deployment strategies like share repurchases and dividend payments.
Year to date, its shares have gained 18% compared with a 36% increase registered by the Zacks Health Maintenance Organization (HMO) industry. However, its solid third-quarter results, raised guidance and strong fundamentals are likely to benefit the stock going forward.
However, Humana has been incurring mounting loss in its Individual Commercial business that has been weighing on the company’s bottom line and top line. It has been witnessing significant decline in enrollment in this business. Along with other health insurers like Anthem Inc , Aetna Inc and UnitedHealth Group, Inc (UNH - Free Report) , Humana is planning to scale back its participation on this loss-making business in 2018. Although curtailment of this business is likely to save the company from losses, it will lead to a fall in revenues.
The company also suffers from rising expenses that has been severely hurting its bottom line.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Humana's Medicare Business Impresses, Public Exchange Hurts
Humana, Inc.’s (HUM - Free Report) strong Medicare business positions it for long-term growth. Medicare membership has witnessed a five-year CAGR (2011-2016) of 6.6%. The same trend continued in the first nine months of 2017 as well.
The company has been witnessing a consistent growth in revenues since 2002. In fact, the company’s revenues have increased at a CAGR of 16% over the last 11 years. The Affordable Care Act (ACA) or Obamacare contributed significantly to the company’s top line. However, the Trump administration is making every effort to repeal and replace the ACA. Despite the unpredictable nature of regulations and its impact on the industry, Humana continues to be an attractive pick for investors.
The company maintains a consistent record of earnings outperformance. In each of the last four quarters, Humana’s bottom line surpassed expectations with an average beat of 6.6%. Following strong third-quarter 2017 results, the company raised its earnings and revenue guidance for 2017. This upbeat guidance boosts shareholders' confidence in the stock.
The company aims to create shareholders’ wealth through capital deployment strategies like share repurchases and dividend payments.
Year to date, its shares have gained 18% compared with a 36% increase registered by the Zacks Health Maintenance Organization (HMO) industry. However, its solid third-quarter results, raised guidance and strong fundamentals are likely to benefit the stock going forward.
However, Humana has been incurring mounting loss in its Individual Commercial business that has been weighing on the company’s bottom line and top line. It has been witnessing significant decline in enrollment in this business. Along with other health insurers like Anthem Inc , Aetna Inc and UnitedHealth Group, Inc (UNH - Free Report) , Humana is planning to scale back its participation on this loss-making business in 2018. Although curtailment of this business is likely to save the company from losses, it will lead to a fall in revenues.
The company also suffers from rising expenses that has been severely hurting its bottom line.
Zacks Rank
Humana presently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>