HUM - Humana: This Year's Drop Might Have Created A Buying Opportunity
2024-03-18 23:26:49 ET
Summary
- Humana's earnings guidance for 2024 and 2025 fell short of analysts' expectations, driven by challenges in its Medicare Advantage business segment.
- Analysts have drastically cut their income projections for HUM, but still expect the company to grow its earnings at a steady rate in the long run.
- Despite challenges in the healthcare sector, Humana's profitability metrics are better than its peers, and the company has a history of impressive dividend growth.
- Assuming it can meet analyst estimates in the long term, the stock appears to be cheap based on forward metrics.
Humana ( HUM ) is one of those rare stocks that received quite a beating from investors this year as most stocks seem to be having a party and making new highs every week. When the company announced its earnings in January, investors didn't like its newly updated guidance for 2024 as the company said it would earn only $16 per share this year whereas analysts were looking for $28 per share in net income. For the year 2025, it said that it estimates to post a net income gain of $6-10 over 2024 which indicates a guidance of $22-26 which is nowhere close to expectations of $37....
Humana: This Year's Drop Might Have Created A Buying Opportunity