Humana Inc. HUM benefits from an extensive Medicaid and Medicare membership base, an aging U.S. population, strategic acquisitions and a strong financial position.
Humana’s Zacks Rank & Price Performance
Humana currently carries a Zacks Rank #3 (Hold).
The stock has gained 4.9% in the past three months against the industry’s 5.6% decline. The Zacks Medical sector decreased 11.5% while the S&P 500 composite inched up 0.9% in the same time frame.
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HUM’s Favorable Style Score
HUM is well-poised for progress, as evidenced by its impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum, and the score is a weighted combination of all three factors.
Humana’s Robust Growth Prospects
The Zacks Consensus Estimate for 2025 earnings is pegged at $16.61 per share, indicating 3% growth from the 2024 estimate. The consensus mark for revenues is $122.1 billion, which indicates a rise of 4.5% from the 2024 estimate.
HUM’s Northbound Estimate Revision
The Zacks Consensus Estimate for 2025 earnings has been revised upward 1.5% in the past 60 days.
Humana’s Decent Earnings Surprise History
Humana’s bottom line surpassed earnings estimates in three of the trailing four quarters and missed the mark once, the average surprise being 0.17%.
HUM’s Business Tailwinds
Humana's revenues continue to grow, driven by higher premiums resulting from a strong customer base in its Medicaid and Medicare businesses. Premiums rose 10.8% year over year during the first nine months of 2024. Through its Insurance segment, Humana offers affordable health plans and expands its presence in various U.S. communities. These plans have led to numerous contract wins and renewals with federal and state authorities.
An aging U.S. population is anticipated to sustain strong demand for Humana’s Medicare plans. The company also supports the elderly population nationwide through its CenterWell brand, launched in 2022. CenterWell Senior Primary Care, along with Conviva Care Center, forms Humana’s Primary Care Organization, serving an extensive population of seniors across several U.S. states. The brand frequently announces expansion plans, establishing senior-focused primary care centers close to seniors’ homes.
A series of acquisitions undertaken over the years, including those of Family Physicians Group, Curo, Enclara, iCare and Inclusa, has boosted the capabilities, diversified income streams and extended the nationwide presence of Humana. HUM often resorts to collaborations with well-reputed organizations to launch new plans or upgrade features within the existing ones. Also, the company does not shy away from divesting underperforming businesses in a bid to improve operational efficiencies and intensify focus on core units.
Humana's solid financial position, characterized by growing cash reserves and adequate cash generation abilities, enables continuous business investments and prudent deployment of capital through share repurchases and dividend payments.
Stocks to Consider
Some better-ranked stocks in the Medical space are ANI Pharmaceuticals, Inc. ANIP, The Ensign Group, Inc. ENSG and Merit Medical Systems, Inc. MMSI. While ANI Pharmaceuticals currently sports a Zacks Rank #1 (Strong Buy), Ensign Group and Merit Medical Systems carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
ANI Pharmaceuticals’ earnings surpassed estimates in each of the last four quarters, the average surprise being 20.27%. The Zacks Consensus Estimate for ANIP’s 2025 earnings indicates a rise of 10.5% from the 2024 estimate. The consensus mark for ANIP’s 2025 earnings has moved 0.2% north in the past seven days.
The bottom line of Ensign Group beat estimates in each of the trailing four quarters, the average surprise being 1.34%. The Zacks Consensus Estimate for ENSG’s 2025 earnings indicates a rise of 10.7%, while the consensus mark for revenues implies an improvement of 11% from the respective 2024 estimates. The consensus mark for ENSG’s 2025 earnings has moved 0.2% north in the past 60 days.
Merit Medical Systems’ earnings outpaced estimates in each of the trailing four quarters, the average surprise being 6.42%. The Zacks Consensus Estimate for MMSI’s 2025 earnings indicates a rise of 10.9%, while the consensus mark for revenues implies an improvement of 8.6% from the respective 2024 estimates. The consensus mark for MMSI’s 2025 earnings has moved 0.3% north in the past 30 days.
Merit Medical Systems stock has gained 5.4% in the past three months. However, shares of ANI Pharmaceuticals and Ensign Group have lost 5.2% and 9.5%, respectively, in the same time frame.
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See This Stock Now for Free >>Humana Inc. (HUM) : Free Stock Analysis Report
Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report
ANI Pharmaceuticals, Inc. (ANIP) : Free Stock Analysis Report
The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report
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