Humana Inc

HUM: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$293.00	Zsqwbpq	Fkzznkfpw

Humana Earnings: Strong So Far, but Medical Utilization Worries Still Constrain 2024 Outlook

Julie Utterback

Jul 31, 2024

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.

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