(HUM) Humana - Ratings and Ratios

Humana Inc. (NYSE:HUM) is a leading health insurance provider in the United States, specializing in medical and specialty insurance products. The company operates through two primary segments: Insurance and CenterWell. The Insurance segment offers a range of medical care and supplemental benefit plans to individuals, including Medicare Advantage, Medicare Prescription Drug Plans, and commercial fully-insured medical and specialty health insurance benefits. The CenterWell segment focuses on healthcare services, including pharmacy benefit management, senior-focused primary care centers, and home health and hospice services.

Humana has significant government contracts, including the administration of the Limited Income Newly Eligible Transition (LI NET) prescription drug plan program for the Centers for Medicare and Medicaid Services (CMS). It also provides Medicaid, dual-eligible, and long-term support services benefits through contracts with various states. Additionally, the company offers military services through the TRICARE T2017 East Region contract. Humanas product portfolio includes dental, vision, and other supplemental health benefits, as well as administrative services only (ASO) products for employer groups. The company distributes its products through employers, independent brokers, agents, sales representatives, and digital insurance agencies.

Humana Inc., founded in 1961 and headquartered in Louisville, Kentucky, has a market capitalization of $35.6 billion as of the latest data. The stock is classified under the Managed Health Care sub-industry and trades on the NYSE. Recent technical indicators show a bearish trend, with the stock price below its 20-day and 50-day simple moving averages (SMAs). The 200-day SMA indicates a longer-term downtrend. The Average True Range (ATR) of 11.15 suggests moderate volatility. Fundamental analysis highlights a trailing P/E ratio of 29.59, with a forward P/E of 18.02, indicating expectations of future earnings growth. The price-to-book (P/B) ratio of 2.17 reflects a premium valuation relative to book value, while the price-to-sales (P/S) ratio of 0.30 points to efficient revenue generation. Return on equity (RoE) stands at 7.37%, indicating modest profitability relative to shareholder equity.

3-Month Forecast: Based on , Humanas stock is likely to remain in a sideways to slightly bearish trend in the near term, with resistance at $272.81 (SMA 20) and support at $265.24 (SMA 50). The ATR of 11.15 suggests price fluctuations within a $20 range over the next three months. From a perspective, the companys high P/E ratio of 29.59 compared to its forward P/E of 18.02 indicates market expectations of future growth, potentially driven by its expanding CenterWell services and strong government contract pipeline. However, the current valuation multiples may limit upside unless earnings exceed consensus estimates. Overall, the stock is expected to trade within a narrow range, with potential downside limited by its defensive characteristics as a healthcare provider.