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Humana (HUM) Moves 7.9% Higher: Will This Strength Last?

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Humana (HUM - Free Report) shares ended the last trading session 7.9% higher at $197.15. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.3% gain over the past four weeks.

CMS finalized Medicare Advantage payment rates for 2027 with an average increase of 2.48%. That’s a sharp improvement from the 0.09% increase proposed in January, helping lift sentiment across the sector. Humana ended 2025 with 5.8 million Medicare Advantage members, making CMS reimbursement changes a key earnings driver. The stronger 2027 rate increase will support premium growth and improve revenue visibility for HUM.

This health insurer is expected to post quarterly earnings of $9.89 per share in its upcoming report, which represents a year-over-year change of -14.6%. Revenues are expected to be $39.45 billion, up 22.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Humana, the consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on HUM going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Humana is part of the Zacks Medical - HMOs industry. Centene (CNC - Free Report) , another stock in the same industry, closed the last trading session 2.6% higher at $36.31. CNC has returned -18.3% in the past month.

Centene's consensus EPS estimate for the upcoming report has changed +1.2% over the past month to $1.88. Compared to the company's year-ago EPS, this represents a change of -35.2%. Centene currently boasts a Zacks Rank of #3 (Hold).

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