Stock in Focus: Humana Inc. (HUM)

Company Profile:

Humana Inc., together with its subsidiaries, operates as a health and well-being company in the United States. It is committed to helping our millions of medical and specialty members achieve their best health. The company’s successful history in care delivery and health plan administration is helping it create a new kind of integrated care with the power to improve health and well-being and lower costs. Its efforts are leading to a better quality of life for people with Medicare, families, individuals, military service personnel, and communities at large. As of December 31, 2017, it had approximately 14 million members in medical benefit plans, as well as approximately 7 million members in specialty products. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.

Recent News:

Humana Inc. (HUM) will release its financial results for the fourth quarter 2018 (4Q18) on Wednesday, February 6, 2019 at 6:30 a.m. eastern time. The company will host a conference call at 9:00 a.m. eastern time that morning to discuss its financial results for the quarter and earnings guidance for 2019.

On December 4, 2018, the company has named Vishal Agrawal, M.D., to the position of Chief Strategy and Corporate Development Officer. Humana also announced that it is realigning its Care Delivery Organization under the leadership of Chief Financial Officer Brian Kane.

On Nov. 28, 2018, the company announced that it will repurchase $750 million of its common stock through an accelerated stock repurchase agreement with Goldman Sachs & Co. LLC (“Goldman Sachs”).

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

HUM’s strengths can be seen in its strong growth, better profitability and robust efficiency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator and the RSI stands at 46.16 with positive bias. We rate Humana Inc. (HUM) a STRONG BUY.