
Humana (HUM) Stock Forecast & Price Target
Humana (HUM) Analyst Ratings
Bulls say
Humana's positive outlook is bolstered by stable cost trends and the potential for significant improvement in adjusted EPS following a successful appeal concerning star ratings for several contracts. The company expects stronger revenue performance and is benefiting from strategic actions in Medicare Advantage pricing, as well as incremental investments geared towards enhancing clinical excellence and operational improvements. Additionally, the firm's solid competitive positioning within the Medicare Advantage landscape, supported by its above-industry star rating profile, positions it favorably against ongoing regulatory and reimbursement changes.
Bears say
The financial outlook for Humana is negatively impacted by persistent margin pressures and a significant miss regarding Stars ratings, which raises concerns about the company's future performance and operational efficiency. Current guidance for 2025 suggests flat earnings per share (EPS), indicating stagnation, while projected earnings could be further pressured by the anticipated turnaround timeline for the Medicare Advantage book extending to 2028, rather than 2027. These factors contribute to a cautious stance regarding Humana's stock, as the company faces elevated investment needs and ongoing utilization pressures, raising doubts about its ability to achieve targeted margins in the near term.
This aggregate rating is based on analysts' research of Humana and is not a guaranteed prediction by Public.com or investment advice.
Humana (HUM) Analyst Forecast & Price Prediction
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