HUM Stock Analysis — Humana Inc.
Sector: Healthcare
AI Verdict
Humana trades at 21.5x next year's earnings with 22.9% expected EPS growth—cheap for a healthcare insurer with scale and regulatory moats, but the sky-high RSI means you're paying up for momentum that could snap back fast.
Competitive Moat
Humana specializes in Medicare Advantage plans, leveraging its scale and deep relationships with healthcare providers to negotiate favorable rates and manage costs. Its defensibility comes from regulatory barriers and a sticky customer base in government-sponsored health insurance.
Summary
Humana's forward P/E of 21.5x and expected 22.9% EPS growth make it a standout among healthcare insurers, but its RSI of 81.9 signals extreme overbought conditions.
Where It Stands
With a -2.37% one-year return, an 81.9 RSI (well above the 75 overbought threshold), and a 21.5x forward P/E versus the healthcare sector median of 22x, Humana is priced in line with peers but technically stretched.
Key Metrics
- RSI: 81.9 — Overbought
- Trailing P/E: 26.4x
- Forward P/E: 21.5x
- PEG Ratio: 1.34
- Earnings Growth: +0.2%
- Revenue Growth: +0.1%
- Market Cap: $29.7B
- Dividend Yield: 0.01%
- 1-Year Return: -2.37%
- 52-Week High: $315.35
- 52-Week Low: $163.11
Analyst Consensus
10 Buy · 21 Hold · 2 Sell (33 analysts)
Bull Case
Analysts expect 22.9% EPS growth next year, so the 21.5x forward P/E is cheap for the growth on offer if Humana's Medicare Advantage moat holds.
Bear Case
An RSI of 81.9 makes a pullback likely, and if the P/E reverts to the sector median of 22x, even a small miss could erase recent gains given the -2.37% one-year return.
Catalyst to Watch
Watch for Medicare Advantage enrollment and regulatory updates, as any negative surprise could quickly deflate the premium built into the stock.