
Humana (HUM) Stock Forecast & Price Target
Humana (HUM) Analyst Ratings
Bulls say
Humana has demonstrated stable cost trends and is poised for significant improvement in adjusted earnings per share, particularly if it successfully appeals for star ratings, which could elevate contracts into bonus-eligible territory. The company is anticipated to achieve stronger revenue than consensus estimates in the near term, driven by strategic pricing actions and an emphasis on improving Medicare Advantage margins, despite some elevated medical costs. Additionally, Humana's investments in clinical excellence and favorable industry positioning through its high Medicare Advantage Star Ratings further strengthen its competitive advantage amidst ongoing regulatory changes.
Bears say
Humana's stock faces a negative outlook primarily due to a "Stars miss," which has led to increased margin pressure amidst rising utilization trends. The company is projected to experience stagnant earnings per share (EPS) and medical loss ratio (MLR) year-over-year in 2025, raising concerns about its ability to achieve target margins by the previously anticipated timeline of 2027. Additionally, ongoing investments to enhance clinical excellence are expected to further postpone financial recovery, with projections suggesting a more realistic timeline for margin improvement might extend to 2028.
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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