AI Analyst Summary
Humana's 27.1% YoY earnings growth and 26.2% revenue expansion demonstrate that its Medicare Advantage membership ramp and cost discipline are driving genuine fundamental outperformance. The forward P/E of 23.2x, paired with a Buy-leaning analyst consensus across 23 analysts, suggests the market recognizes the growth trajectory while not yet pricing in full upside. The primary risk is margin compression from rising medical costs and CMS reimbursement rate uncertainty, which could quickly erode profitability given the company's thin managed-care margins.
Fundamentals
Pe
Trailing P/E 36.8x / Forward P/E 23.2x · 2.0/5
Trailing P/E of 36.8x is elevated relative to the healthcare plans sector median. The forward P/E of 23.2x is more reasonable but still reflects a premium valuation that requires sustained earnings delivery to justify.
Peg
PEG 2.20 · 2.0/5
PEG of 2.20 sits in the below-average range, suggesting the market is paying a meaningful premium for growth. While earnings growth is strong, the ratio indicates valuation is not particularly attractive on a growth-adjusted basis.
Analyst Rating
Buy consensus (2.2) · 4.0/5
Consensus of 2.2 across 23 analysts (12 Buy / 13 Hold / 1 Sell) reflects a constructive but not uniformly bullish view. With 23 analysts covering the stock, the rating carries significant weight and maps to a score of 4.
Earnings Trend
EPS Growth +27.1% YoY / Revenue +26.2% YoY · 5.0/5
Earnings growth of 27.1% YoY comfortably exceeds the 25% threshold for a top score. Revenue growth of 26.2% corroborates broad-based fundamental strength, pointing to durable top-line and bottom-line momentum.
Price Target Beat
4 of 4 quarters beat (last 4 quarters only) · 3.0/5
A perfect 4-of-4 EPS beat rate over the available window is encouraging, but the data covers only 4 quarters rather than the full 8-quarter history. Scored conservatively at 3 per the insufficient history guideline, with an upward lean given the clean recent record.
Management
Consistent recent execution; constructive analyst sentiment · 4.0/5
Four consecutive EPS beats paired with strong double-digit revenue and earnings growth signal solid operational discipline. Analyst confidence reflected in a Buy-leaning consensus further supports an above-average management score, though the limited beat history prevents a top rating.
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