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Humana Inc. (HUM), headquartered in Louisville, Kentucky, provides medical and specialty insurance products. With a market cap of $27.8 billion, the company offers coordinated health care through health maintenance organizations, point-of-service plans, and administrative services products.
Shares of medicare giant have underperformed the broader market over the past year. HUM has declined 34.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 11.5%. In 2025, HUM stock is down 10.3%, compared to the SPX’s marginal rise on a YTD basis.
Narrowing the focus, HUM’s underperformance is also apparent compared to the iShares U.S. Healthcare Providers ETF (IHF). The exchange-traded fund has fallen about 12.9% over the past year. Moreover, the ETF’s 2.6% dip on a YTD basis outshine the stock’s low double-digit losses over the same time frame.
HUM’s underperformance can be linked to decline in investment income, fall in overall membership and an elevated operating expense level.
On Apr. 30, HUM shares closed up more than 1% after reporting its Q1 results. Its adjusted EPS of $11.58 beat Wall Street expectations of $9.98. The company’s revenue was $32.1 billion, falling short of Wall Street forecasts of $32.2 billion. HUM expects full-year EPS to be $16.25.
For the current fiscal year, ending in December, analysts expect HUM’s EPS to grow 1.2% to $16.40 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 23 analysts covering HUM stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, two “Moderate Buys,” and 15 “Holds.”
This configuration is more bullish than a month ago, with one analyst suggesting a “Moderate Buy.”
On May 12, Truist Financial Corporation (TFC) analyst David MacDonald kept a “Hold” rating on HUM and lowered the price target to $305, implying a potential upside of 34.1% from current levels.
The mean price target of $299.19 represents a 31.5% premium to HUM’s current price levels. The Street-high price target of $339 suggests an upside potential of 49%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
