Humana Inc
HUM: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$318.00 | Xxfdsxv | Gvcktqdx |
Humana Earnings: Strong So Far, but Medical Utilization Worries Still Constrain 2024 Outlook
We are keeping our $473 fair value estimate intact after narrow-moat Humana delivered a strong quarter. However, with robust medical utilization trends, management did not alter its 2024 guidance and gave limited insights to its 2025 outlook beyond expected profit growth on a multiyear trajectory toward its 3% target operating margin in Medicare Advantage. Overall, uncertainty surrounds Humana's near-term prospects, but we still have a solid view of its long-term opportunities. We think that Humana shares remain attractively valued.