Shares of Humana (HUM, Financial) experienced a notable decline, dropping by 6.64%. This movement was primarily in response to UnitedHealth's underwhelming first-quarter 2025 results, which failed to meet Wall Street's expectations. The disappointing full-year earnings forecast of UnitedHealth, citing prolonged care and funding challenges in its Medicare plans, has raised concerns about the financial stability of similar health insurers offering Medicare services.
Humana (HUM, Financial) is currently trading at $266.64, reflecting an 18.98% change in value. The company's current Price-to-Earnings (PE) ratio stands at 26.8, close to its five-year high, indicating a potentially overvalued stock by historical standards. However, Humana's Beneish M-Score of -2.43 suggests it is unlikely to be a manipulator, portraying financial stability.
Despite the recent drop in stock price, Humana (HUM, Financial) is deemed "Significantly Undervalued" according to its GF Value, which is priced at $622.97. Investors can explore more details on Humana's intrinsic value through the GF Value for further insights. The company's market capitalization is approximately $32.18 billion with an Enterprise Value of $43.99 billion.
From a growth perspective, Humana has shown a consistent revenue increase over the years. Its revenue growth rate over the last three years is 14.9%, which is well above the industry median of 10.9%. Despite these growth figures, the company's earnings growth over the same period has seen a decline of 26.8%, suggesting challenges in maintaining profitability.
The current market conditions have introduced a degree of uncertainty and tighter margins, especially for companies heavily involved in Medicare plans. Investors should consider both the risks and potential undervaluation of Humana (HUM, Financial) as they assess its future performance.
