Latest news with #HUM
Yahoo
27-05-2025
- Business
- Yahoo
2 Reasons to Like HUM and 1 to Stay Skeptical
Humana has gotten torched over the last six months - since November 2024, its stock price has dropped 24.3% to a new 52-week low of $224.50 per share. This may have investors wondering how to approach the situation. Following the pullback, is now an opportune time to buy HUM? Find out in our full research report, it's free. With over 80% of its revenue derived from federal government contracts, Humana (NYSE:HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors. A company's long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, Humana's sales grew at a solid 12.2% compounded annual growth rate over the last five years. Its growth surpassed the average healthcare company and shows its offerings resonate with customers. Larger companies benefit from economies of scale, where fixed costs like infrastructure, technology, and administration are spread over a higher volume of goods or services, reducing the cost per unit. Scale can also lead to bargaining power with suppliers, greater brand recognition, and more investment firepower. A virtuous cycle can ensue if a scaled company plays its cards right. With $120.2 billion in revenue over the past 12 months, Humana is one of the most scaled enterprises in healthcare. This is particularly important because health insurance providers companies are volume-driven businesses due to their low margins. Revenue growth can be broken down into the number of customers and the average spend per customer. Both are important because an increasing customer base leads to more upselling opportunities while the revenue per customer shows how successful a company was in executing its upselling strategy. Humana's total customers came in at 14.84 million in the latest quarter, and over the last two years, their count averaged 3.4% year-on-year declines. This performance was underwhelming and shows the company lost deals and renewals. It also suggests there may be increasing competition or market saturation. Humana has huge potential even though it has some open questions. With the recent decline, the stock trades at 15.1× forward P/E (or $224.50 per share). Is now a good time to initiate a position? See for yourself in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
Humana, UnitedHealth fall after CMS expands Medicare Advantage audit
Shares of health insurers are moving lower after the Centers for Medicare and Medicaid Services announced a 'significant expansion' of its auditing efforts for Medicare Advantage plans. Beginning immediately, CMS will audit all eligible Medicare Advantage contracts for each payment year in all newly initiated audits and invest additional resources to expedite the completion of audits for payment years 2018 through 2024, the agency said. Shas of Humana (HUM) are down 5% to $233.10 in after-hours trading while UnitedHealth (UNH) is down 4% to $291.60 and CVS Health (CVS) is down 4% to $59.50. Elevance Health (ELV) (ELV( is down 1% to $395.85. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on HUM: Disclaimer & DisclosureReport an Issue CMS announces 'significant expansion' of Medicare Advantage audits Early notable gainers among liquid option names on May 14th UnitedHealth intra-day move supporting a bottom, says RBC Capital Humana price target lowered to $305 from $325 at Truist Proposal to cut Medicaid spending aims for GOP middle ground, WSJ says Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Medicare audits, Advance Auto Parts, solar: Trending Tickers
The US Centers for Medicare & Medicaid Services have announced Medicare Advantage audits on health insurers, with this news sending shares of Humana (HUM), UnitedHealth Group (UNH), and CVS Health (CVS) lower. Advance Auto Parts (AAP) stock skyrockets by over 40% on Thursday after the car parts retailer reaffirmed its full-year earnings guidance alongside its first quarter beat on estimates. Solar companies Sunrun (RUN), Enphase Energy (ENPH), and SolarEdge Technologies (SEDG) are taking a stock hit after the House advanced President Trump's tax bill to the Senate, the spending package outlining plans to eliminate clean energy tax credits. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
20-05-2025
- Business
- CNBC
A dip-buying strategy for healthcare as UnitedHealth's woes hang over the sector
UnitedHealth has been a major drag on the healthcare sector, but is finally showing signs of a turnaround. This shift in sentiment is starting to show up across many healthcare securities — including the Health Care Select Sector SPDR Fund (XLV) , Humana (HUM) , Eli Lilly (LLY) , Merck (MRK) , AbbVie (ABBV) and others. While I could've chosen UnitedHealth for this trade, the stock is currently surrounded by controversies and analyst downgrades. So instead, I've decided to focus on Humana, which offers a cleaner set-up with fewer headline risks. For this trade, I'm relying on three technical indicators to build a directional bias. MACD (5,13,5) - Since the standard MACD is a lagging indicator, I've discussed using a short-term or "faster" MACD in past articles to help generate earlier entry signals. A bullish MACD crossover — where the MACD line crosses above the signal line — can act as a cue to start building positions sooner. That said, a faster MACD is more sensitive to price movements and can produce more noise, making trade management even more important. A good rule of thumb is to exit if the MACD crosses back below the signal line, which may indicate momentum is fading. In HUM's case, we saw a bullish MACD crossover on May — giving us an early signal to consider entering the trade. RSI (Relative Strength Index): This move was further validated by the RSI, which bounced off oversold territory on 5/15 and has been climbing sharply since. DMI (Directional Movement Index): The DMI consists of three components: DI+ (green line), DI- (red line), and ADX (blue line). When the DI- is above the DI+, it typically signals a downtrend. But when these lines begin to shift direction, it often hints at a potential trend reversal. In HUM's case, both the DI- and DI+ have started to turn, offering an early signal that a trend change may be underway. As broader markets rebound sharply from the recent tariff-driven correction, we're approaching a zone where resistance could start to kick in. This makes it an ideal time to consider rotating into more defensive sectors like Health Care or Consumer Staples — a smart way to balance your portfolio while locking in some protection. The Trade set-up I'm looking to take advantage of a potential upside move in HUM using a bull call spread. With the stock currently near $247, the trade involves going long the $245 call (in-the-money) and simultaneously selling the $250 call (out-of-the-money) to complete the spread. If HUM finishes at or above $250 by the June 13th expiration, the trade would deliver a full 100% return on the amount risked. This setup provides a balanced way to play the upside while keeping risk tightly controlled and clearly defined. Here is my exact trade setup: Buy $245 call, June 13th expiry Sell $250 call, June 13th expiry Cost: $250 Potential Profit: $250 You'll find many more setups like this — broken down step-by-step — in my book Mean Reversion Trading . I also share hundreds of real trade examples on my website: . -Nishant Pant Founder: Author: Mean Reversion Trading Youtube, Twitter: @TheMeanTrader DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Yahoo
22-04-2025
- Business
- Yahoo
Is Humana Inc. (HUM) The Top Falling Stock with Unusual Volume?
We recently published a list of . In this article, we are going to take a look at where Humana Inc. (NYSE:HUM) stands against other top falling stocks with unusual volume. Uncertainty around tariffs and macroeconomic conditions has dented investor confidence, resulting in stock prices falling. While some stocks have come under pressure due to the above two reasons, others have simply followed the market direction or have dipped for company-specific reasons. Regardless of the reasons for stocks going down, falling stocks provide an opportunity for fresh investors to get in at good prices. Once the risks subside, these stocks usually recover quickly as well. We decided to uncover these stocks and see if it makes sense to put money in them to take advantage of the ongoing market turmoil. To come up with our list of top 20 stocks falling with unusual volume, we looked at stocks over $300 million in market cap, their one-week performance, and used relative volume to detect the unusual volume activity. Relative volume compares the daily volume to the three-month average trading volume of the stock, making it easy to detect spikes in volume. These spikes usually signal something important is happening, which, when combined with falling prices, becomes a red flag that investors can't ignore. A closeup of an elderly patient happily receiving a specialty healthcare product. Humana Inc. is a medical and specialty insurance products provider. The company operates through the CenterWell and Insurance segments. It provides supplemental benefit plans and medical care to individuals. The stock is down 8.88% in a week on a relative volume of 2.15. After falling during the last week, the stock has come back to the same level it was at earlier in the month when some positive developments caused the price to spike. The company received a favorable policy decision from the CMS for next year's Medicare Advantage plans. However, there are still question marks on the company's long-term ability to generate profits. Regulatory issues and healthcare spending are two big hurdles that the company needs to figure out. Medicare and Medicaid are two major reasons for the government's out-of-control spending, and these will likely stay under pressure during this presidential term. The long-term prospects of Humana, therefore, look bleak. Overall, HUM ranks 9th on our list of top falling stocks with unusual volume. While we acknowledge the potential of HUM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than HUM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
