Humana Inc Intrinsic Stock Value – Despite Market Downturn, Humana Stock Outperforms Competitors with Minimal Losses
March 29, 2024
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Humana Inc ($NYSE:HUM). is a leading healthcare company that offers a wide range of insurance and wellness services to its customers. On Monday, Humana Inc.’s stock closed at $347.09, marking a decrease of 0.42%. While this may seem like a negative performance, it is important to note that this was in line with the overall trend of the stock market, as reflected by the S&P 500 Index. In fact, compared to its competitors in the healthcare sector, Humana Inc.’s stock has performed relatively well despite the market downturn. One of the key factors contributing to Humana Inc.’s resilient stock performance is its strong financial position. This growth can be attributed to Humana’s diverse portfolio of healthcare services, including its popular Medicare Advantage plans. Moreover, Humana Inc. has been proactive in adapting to the changing landscape of the healthcare industry. This forward-thinking approach has not only improved customer satisfaction but has also helped boost Humana’s stock performance.
Additionally, Humana Inc.’s strong leadership and strategic partnerships have played a significant role in its stock outperforming its competitors. Along with this, Humana has formed partnerships with other major players in the industry, such as Walgreens and Microsoft, to further enhance its services and offerings. In conclusion, despite experiencing a minor loss on Monday, Humana Inc.’s stock has showcased its resilience and ability to outperform its peers in the highly competitive healthcare industry. With a strong financial position, innovative strategies, and strategic partnerships, the company is well-positioned to continue its success and provide value for its shareholders.
Share Price
Despite the recent downturn in the market, Humana Inc. has managed to outperform its competitors with minimal losses. On Monday, the healthcare giant’s stock opened at $349.0 and closed at $347.1, representing a decrease of only 0.4% from its previous closing price of 348.5. This is a significant achievement, considering the overall decline in the stock market due to concerns over the global economy and the ongoing trade war between the United States and China. One possible reason for Humana’s resilience could be its strong financial performance and stable business model. The company reported solid earnings in its latest quarterly report, which was released in late July. Another factor that may be contributing to Humana’s success is its focus on the healthcare sector, which is known for being relatively recession-proof. People still need medical care regardless of the state of the economy, so companies like Humana that provide essential healthcare services are not as vulnerable to market downturns as other industries.
Additionally, Humana has been making strategic investments and partnerships to diversify its offerings and expand its reach. For example, earlier this year, the company announced a joint venture with private equity firm Welsh, Carson, Anderson & Stowe to acquire Curo Health Services, a provider of hospice care. Overall, while the market may be experiencing volatility and uncertainty, Humana has managed to stay strong and continue delivering value to its shareholders. Its ability to withstand market downturns and outperform its competitors with minimal losses is a testament to its sound business strategy and financial stability. As the healthcare industry continues to grow and evolve, Humana is well-positioned to continue its success and provide value for investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Humana Inc. More…
| Total Revenues | Net Income | Net Margin |
| 106.37k | 2.49k | 2.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Humana Inc. More…
| Operations | Investing | Financing |
| 3.98k | -3.49k | -856 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Humana Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 47.06k | 30.75k | 132.09 |
Key Ratios Snapshot
Some of the financial key ratios for Humana Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.3% | – | 3.6% |
| FCF Margin | ROE | ROA |
| 2.8% | 14.6% | 5.1% |
Analysis – Humana Inc Intrinsic Stock Value
After conducting a thorough analysis of HUMANA INC‘s wellness, GoodWhale has determined that the intrinsic value of their share is approximately $562.1. This value has been calculated using our proprietary Valuation Line method, taking into account various factors such as the company’s financial performance, industry trends, and competitive landscape. Currently, HUMANA INC’s stock is being traded at $347.1, which means it is undervalued by approximately 38.3%. This presents a great opportunity for investors to purchase the stock at a discounted price, as its true value is higher than the current market price. At GoodWhale, we strongly believe in the importance of thorough analysis and diligence when it comes to making investment decisions. Our team has carefully studied HUMANA INC’s wellness and financials to determine its true value, and we are confident in our findings. Based on our analysis, we recommend considering HUMANA INC stock as a potential investment opportunity. With its current undervaluation and strong track record in the healthcare industry, we believe it has the potential to provide significant returns for investors in the long term. However, as with any investment, it is important to conduct your own research and make informed decisions based on your own risk tolerance and financial goals. GoodWhale is always available to provide further insights and guidance on this or any other potential investment opportunity. More…
Peers
In the ever-changing world of healthcare, Humana Inc. has been a leader in providing quality services to its customers. However, the company faces stiff competition from the likes of UnitedHealth Group Inc, Cigna Corp, and Oscar Health Inc. All of these companies are striving to provide the best possible healthcare experience to their customers.
– UnitedHealth Group Inc ($NYSE:UNH)
UnitedHealth Group Inc. is an American for-profit managed health care company based in Minnetonka, Minnesota. It is the largest healthcare company in the world by revenue, with 2019 revenue of $242.2 billion. The company offers health care products and services through two operating businesses: UnitedHealthcare and Optum.
UnitedHealthcare provides health benefits and services to individuals, families, and businesses through a wide array of plans and programs, including health insurance, pharmacy benefits, vision, dental, and other supplemental health and wellness benefits. Optum is a health services and innovation company that provides technology-enabled health services and software. It offers healthcare information technology, data analytics, and research and consulting services to the healthcare industry.
The company has a market capitalization of $488.16 billion as of April 2021 and a return on equity of 21.75%.
– Cigna Corp ($NYSE:CI)
Cigna Corp is a health services company with a market cap of 88.46 billion as of 2022. The company has a return on equity of 11.01%. Cigna Corp provides medical, dental, disability, life, and other health insurance products and services. The company also offers pharmacy benefit management services.
– Oscar Health Inc ($NYSE:OSCR)
Oscar Health is a technology-driven health insurance company founded in 2012. The company’s mission is to make health insurance simple, transparent, and human.
Oscar uses technology to simplify the health insurance experience for consumers and providers. The company has a suite of tools that helps consumers understand their benefits, find doctors, and estimate the cost of care. For providers, Oscar offers a platform that streamlines claims processing and provides real-time insights into patients’ health insurance benefits.
Oscar Health is headquartered in New York City and is available in nine states: California, Colorado, Florida, Georgia, Illinois, Michigan, New Jersey, New York, and Texas.
Summary
On Monday, Humana Inc. stock performed well despite a tough day for the overall market. Although the stock experienced a 0.42% drop to $347.09, it outperformed its competitors. This is a positive sign for investors, indicating that Humana may be a strong investment option in the healthcare industry. Despite the slight loss, Humana’s stock price has been consistently high and stable, making it an attractive choice for investors looking for long-term growth potential.
