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Humana (HUM) Gains But Lags Market: What You Should Know

Humana (HUM) closed the most recent trading day at $520.78, moving +1.09% from the previous trading session. This change lagged the S&P 500's 1.45% gain on the day. Meanwhile, the Dow gained 2.12%, and the Nasdaq, a tech-heavy index, added 5.41%.

Heading into today, shares of the health insurer had lost 2.53% over the past month, outpacing the Medical sector's loss of 3.5% and lagging the S&P 500's gain of 1.53% in that time.

Humana will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $8.92, up 2.88% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $25.7 billion, up 8.6% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $28.25 per share and revenue of $102.2 billion, which would represent changes of +11.93% and +10.04%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Humana. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% lower within the past month. Humana is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Humana's current valuation metrics, including its Forward P/E ratio of 18.24. This represents a premium compared to its industry's average Forward P/E of 16.64.

Meanwhile, HUM's PEG ratio is currently 1.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HUM's industry had an average PEG ratio of 1.07 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow HUM in the coming trading sessions, be sure to utilize

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