DailyIQ
|
Sector:HealthcareAll sectors
Last updated 5 minutes ago

HUM·Humana Inc.

$.
-. (-.%)
After Hours
High
$398.66
Open
$398.66
Market Cap
47.34B
52W High
$415.00
Low
$387.11
P. Close
$392.46
P/E
41.90
52W Low
$163.11
Fwd P/E
24.93
DailyIQ Est.
$317.08
Technical Score (1D)
82
BUY
News Sentiment
83
BULLISH
RBC has just lifted its price target for Humana to $415 from $246, a move that signals a significant shift in the brokerage’s view of the company’s valuation. The upgrade reflects confidence in Humana’s projected earnings trajectory, driven by its expanding Medicare portfolio and recent value‑based care initiatives. By maintaining a sector‑perform rating, RBC signals that it sees Humana as a solid performer within the broader health‑care sector, but not a breakout play. The new target implies that the market may need to re‑price Humana’s shares to reflect the upside from Medicare growth and technology integration. Over the next 1–10 trading days, traders should watch for the company’s upcoming earnings release, which will test whether the earnings assumptions underpinning the $415 target hold. A stronger than expected Medicare revenue or a clear roadmap for value‑based care adoption could validate the new valuation and lift the stock. Conversely, any miss on Medicare projections or delays in technology roll‑outs could dampen the upside and keep the stock near the lower end of the target range. In addition to earnings, investors should monitor any updates on Medicare policy changes that could affect Humana’s reimbursement rates. Finally, keep an eye on broader health‑care sector sentiment, as shifts in regulation or payer mix can influence the performance of all Medicare‑focused insurers.
Earnings Summary
Humana Inc. is a U.S.-based healthcare company primarily focused on providing medical and specialty insurance products, operating through its Insurance and CenterWell segments. The company serves individuals, employer groups, and government programs such as Medicare and Medicaid, positioning it within the broader healthcare plans sector. In the most recent reporting cycle, Humana’s Q4 2025 revenue of $32.64 billion reflected a modest decline from the $32.65 billion recorded in Q3 2025, while the Q1 2026 revenue surged to $39.65 billion, marking a 21.6 % year‑over‑year increase and the strongest quarterly growth in the series. EPS, however, swung from a $‑3.96 loss in Q4 2025 to a $10.31 gain in Q1 2026, a turnaround that follows a pattern of mixed earnings outcomes: the company beat estimates in four of the last six quarters (Q1 2025, Q2 2025, Q3 2025, Q1 2026) but missed in Q4 2024 and Q4 2025. Historically, revenue has trended upward with a notable acceleration in the first quarter of 2026, while EPS has shown volatility, oscillating between losses and gains as the firm navigates cost pressures. Recent news highlights Humana’s selection to join Illinois’s statewide Medicaid managed‑care program, HealthChoice Illinois, slated for launch in January 2027, and a strategic pivot toward margin recovery driven by lower medical costs and rising CenterWell revenues. These developments suggest a shift in the company’s revenue mix toward higher‑margin government programs and a renewed focus on profitability. Investors should watch for evidence of cost containment progress, the timing and enrollment impact of the Illinois HealthChoice rollout, and any updates on Medicare fee‑for‑service policy changes that could influence the company’s Medicare Advantage performance, as these factors will be key to assessing Humana’s earnings quality in the next reporting cycle.

EPS

EstBeatMiss
$-6.29$-1.24$3.81$8.86$13.91Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$6.97 - -
Q1'26$10.16$10.31+1.5%
Q4'25$10.57$-3.96-137.5%
Q3'25$2.83$3.24+14.6%
Q2'25$5.87$6.27+6.9%
Q1'25$10.07$11.58+15.0%

Revenue

EstBeatMiss
$30.8B$33.7B$36.5B$39.4B$42.3BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$41.0B - -
Q1'26$39.4B$39.6B+0.7%
Q4'25$35.5B$32.6B-8.1%
Q3'25 - $32.6B -
Q2'25 - $32.4B -
Q1'25 - $32.1B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
→

Market Data

HUM Stock Snapshot

HUM is currently trading at $390.00, giving Humana Inc. a market cap of 47.34B and a P/E ratio of 41.9. Today's range spans $387.11–$398.66, with shares opening at $398.66 and moving down $2.46 (0.6%) from the prior close. DailyIQ's technical score sits at 82/100 (BUY) with a news sentiment reading of 83/100.

Over the past year HUM has traded between $163.11 and $415.00 - the current price is +139.1% off the 52-week low and -6.0% from the high. 34 analysts cover the stock with a Hold consensus and a mean 12-month target of $315.38 (range $195.00–$441.00), implying downside of -19.1%.

Humana Inc. (HUM) is a large-cap in Healthcare with 47.34B in market cap, and the current setup is one of the cleaner bullish reads in the space. Technical score: 82/100 (BUY). Sentiment: bullish at 83/100. Price: $390.00 (near 52-week highs). The current P/E ratio stands at 41.9. The 52-week range of $163.11–$415.00 provides structural context - and the current technical/sentiment alignment is the type of setup that attracts both momentum and growth-oriented capital.

What makes HUM's BUY setup (82/100) particularly actionable at 47.34B in Healthcare capitalization is the scale-to-move ratio: large enough to feature on institutional mandates but not so large that the percentage upside is already compressed by index inertia. At $390.00 (near 52-week highs in $163.11–$415.00), with sentiment running bullish at 83/100, the setup rewards conviction-sized positioning more than it does speculative small bets.