Summary:
- Humana (HUM, Financial) sees a 15% rise in post-market trading due to a significant increase in Medicare Advantage payments for 2026.
- Analysts predict a potential 15.09% upside for Humana, with price targets ranging significantly.
- GuruFocus estimates suggest a massive potential upside, forecasting the stock's GF Value will rise to $654.69.
Humana Inc. (HUM) has recently experienced a notable surge, climbing 15% in post-market trading. This upward momentum comes following the announcement from the U.S. Centers for Medicare & Medicaid Services of a substantial 5.06% increase in Medicare Advantage payments for 2026. This adjustment not only exceeds initial forecasts but also represents a $25 billion elevation from previous estimates, signaling positive news for investors.
Wall Street Analysts Forecast
Wall Street's outlook for Humana is optimistic yet varied. Based on the one-year price targets proposed by a panel of 21 analysts, the average target for Humana Inc. (HUM, Financial) stands at $293.15. Analysts have set a high estimate of $402.23 and a conservative low of $241.00. These projections imply a potential upside of 15.09% from the current share price of $254.71. For more in-depth analysis, visit the Humana Inc (HUM) Forecast page.
Brokerage Recommendations
Currently, Humana Inc. (HUM, Financial) holds an average brokerage recommendation of 2.7, translating to a "Hold" status among 27 brokerage firms. This scale indicates investor caution, with the rating ranging from 1 (Strong Buy) to 5 (Sell).
GuruFocus Valuation Estimates
According to GuruFocus estimates, Humana's estimated GF Value projects at an impressive $654.69 one year from now, suggesting a potential upside of 157.03% from the current price of $254.71. This GF Value is a key metric that examines the fair value of the stock, taking into account historical trading multiples, past business growth, and future performance projections. For a comprehensive overview, reference the Humana Inc (HUM, Financial) Summary page.