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Humana Inc.
S&P 500
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$46.3B
Market Cap
26.0
P/E
1.41
PEG
9.0%
ROCE
7.0%
ROE
0.75
D/E
2.5%
OPM
-5.8%
% from 52W High
91
α RS
🔍 HUM is showing a sector-leadership setup because Sector RRG has Health Care in the Leading quadrant with the trail still strengthening, it matches 2 of 39 tracked screener presets, RS Rating is 91 (top decile vs market), and it has maintained a 5-day Near 52-Week High momentum persistence. Net: Broad signal stack, not a recommendation. ? RRG Conviction RS Rating Momentum Streaks
Sources
Health Care in Leading quadrant · Conviction 2/39 · RS Rating 91 · Near 52-Week High streak: 5d
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🌏 Global Investor Returns
Currency-adjusted total returns for HUM including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Humana Inc. provides medical and specialty insurance products in the United States. It operates in two segments, Insurance and CenterWell. The Insurance segment offers individual Medicare Advantage products, including health insurance benefits, including wellness programs, chronic care management, and care coordination; individual Medicare stand-alone prescription drug products (PDP); group Medicare advantage and Medicare stand-alone PDP; Medicare supplements; specialty and ancillary insurance comprising dental, vision, life and disability; and administrative services to arrange health care services for active-duty and retired military personnel and dependents, as well as pharmacy benefit managers. Its CenterWell segment operates full-service, value-based senior focused primary care centers under the Conviva Senior Primary Care and CenterWell Senior Primary Care brands; a management services organization; CenterWell Home Health, a home health provider; and OneHome, which manages post-acute patient needs, as well as provides pharmacy and hospice solutions. The company was formerly known as Extendicare Inc. and changed its name to Humana Inc. in April 1974. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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Manager Shares Value % of Fund Period
Stan Druckenmiller Duquesne Family Office 137.5K $23.8M 0.71% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$40.9B
+26% YoY
Operating Income
$2.5B
+5% YoY
Operating Margin
9.8%
-1.2pp YoY
Net Income
$952M
+28%, GAAP EPS $5.73
What Went Right
  • Adjusted EPS $7.61 beat prior year's $6.27 by 21%, YTD adjusted EPS $17.91 vs $17.85
  • Operating cost ratio down 120 bps YoY in Q2 to 9.8%, on track to ~150 bps full-year
  • Stars improvement: outpaced historical CAGR on 11 of 12 selected HEDIS/patient safety metrics
  • Illinois Medicaid statewide contract won; only new entrant among five incumbents
What to Watch
  • MA plan exits for 2027 expected to impact ~600,000 members, though recapture expected
  • BY28 Stars results still unknown; company enters blackout period in August until October
  • GAAP EPS guidance cut to at least $6.52 from at least $8.36 due to non-cash items / charges
  • Drug trend expected to tick modestly higher next year due to new health technology pipeline
Management Guidance
  • FY2026 Adjusted EPS reaffirmed at 'at least $9.00'; GAAP EPS revised to 'at least $6.52' from 'at least $8.36'
  • FY2026 Insurance segment benefit ratio affirmed at 92.75%, plus or minus 25 basis points
  • FY2026 individual MA membership growth affirmed at 'approximately 25 percent' over 2025
  • Expect meaningful MA margin expansion in 2027 from clinical, efficiency, benefit and plan exit actions
Investor Lens
The thesis for Humana strengthens after Q2: the company is executing on its 2026 commitments, showing tangible Stars progress, and taking deliberate but disciplined actions on 2027 bids to drive margin recovery. Revenue growth of 26% reflects membership gains, while same-year operating cost ratio improvements contribute to EPS outperformance. Management remains confident in its 2028 restated margin target of at least 3%, and the December 10 investor update will provide a mark-to-market on key commitments.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 2026 solid: adj EPS $7.61, revenue $40.9B, affirmed FY guide
Revenue
Revenue rose to $40.9B in Q2 2026, up 26% YoY from $32.4B, driven by Medicare Advantage membership growth. YTD revenue was $80.5B versus $64.5B in the same period last year.
Profitability
Adjusted EPS was $7.61 for Q2 2026, up from $6.27 a year earlier; YTD adjusted EPS was $17.91 versus $17.85. GAAP EPS was $5.73 for the quarter, up from $4.51.
Margins
Q2 operating cost ratio improved 120 bps YoY to 9.8%, ahead of the full-year target of ~150 bps improvement. Insurance segment GAAP benefit ratio was 91.2%, in line with guidance of 'slightly above 91 percent'.
Balance Sheet
Not explicitly discussed in the call; however, management noted establishment of $1.5 billion in contingent capital facilities using PCAPS. Divestiture of minority interest in Gentiva valued at ~$900 million is expected to close in Q4.
Key Risks
Key risks include: Star thresholds unknown for BY28 — company enters blackout period until October; 2027 MA bids involve plan exits impacting ~600k members with uncertain recapture; cost trend could be affected by new high-cost drugs; regulatory/Stars litigation remains unresolved.
Outlook
FY2026 adjusted EPS maintained at 'at least $9.00' and GAAP EPS revised down to 'at least $6.52'. Management expects meaningful MA margin progress in 2027, targeting a sustainable 3% pretax margin by 2028; virtual investor update planned for December 10, 2026.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-29
Performance is on track with expectations, supported by cost control, margin expansion, and operational improvements. Stars program progress and value-based care are driving quality and financial results, while strategic divestitures and capital initiatives enhance flexibility.
Q1 2026 Q1 2026 2026-04-29
First quarter results met expectations, with strong MA and Medicaid membership growth and prudent reserving. Progress continues toward a 3%+ margin by 2028, aided by operational efficiencies, cost management, and strategic acquisitions.
Q4 2025 Q4 2025 2026-02-11
Solid 2025 results with adjusted EPS of $17.14 and strong MA membership growth set the stage for 2026, despite a $3.5B Stars headwind and conservative guidance. Transformation, capital efficiency, and value-based care drive long-term margin and earnings potential.
Q3 2025 Q3 2025 2025-11-05
Third quarter results were solid, with revenue and medical cost trends in line with expectations and full year 2025 EPS outlook reaffirmed at ~$17. Membership retention and favorable product mix are driving growth, while transformation and operational efficiency initiatives continue.
Q2 2025 Q2 2025 2025-07-30
Second quarter and first half results exceeded expectations, driven by CenterWell Pharmacy and improved MA membership trends. Full-year 2025 adjusted EPS outlook was raised to ~$17, with continued investment in member outcomes and operational excellence.
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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