Humana Isn't Broken, But The Stock Has No Real Edge Right Now
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Motti Sapir1.19K FollowersFollow5ShareSavePlay(9min)CommentsSummaryHumana trades near fair value, reflecting a mixed profit outlook and Medicare Advantage uncertainties.Short-term profit headwinds, lower Star ratings, and regulatory risks temper upside; cost-saving initiatives offer some support.HUM’s valuation, profitability, and dividend yield lag peers like Cigna and Elevance, limiting its appeal for income or value investors.Stock direction hinges on Medicare Advantage signups, Star ratings recovery, and execution of cost-saving programs over the next 1-3 years.
Peter Blottman Photography/iStock Unreleased via Getty Images Humana Inc.'s (HUM) stock dropped about 9% since I last checked in back in early October, from $284 to $258 per share. The price was jumpy, swinging up to $302 in October and falling to $221 inThis article was written byMotti Sapir1.19K FollowersFollowWith over 15 years of experience in the markets and a degree in economics, I focus on breaking down companies with clarity and discipline. My goal is to give individual investors a straightforward, honest view—what’s working, what isn’t, and where the risks and opportunities actually are. I don’t chase narratives. I follow the numbers and the business underneath.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.