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Humana (HUM) Moves 4.0% Higher: Will This Strength Last?

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Humana (HUM - Free Report) shares soared 4% in the last trading session to close at $256.62. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20.9% loss over the past four weeks.

Humana stock witnessed a price rise, which might be the result of the company reporting progress in its Medicare star ratings. Per multiple reports, HUM announced that around 20% of its current membership—roughly 1.2 million individuals—are now enrolled in plans rated 4 stars or higher for 2026. Importantly, the company significantly boosted the proportion of members in 4.5-star plans, rising to 14% for 2026 from just 3% in 2025.

The health insurer’s Medicare plans stand out for their breadth, flexibility and strong competitive positioning. Through the Medicare business, the company offers a wide variety of Medicare Advantage, Prescription Drug, and Supplement plans in the United States, supported by an extensive provider network and strategic partnerships that enhance care coordination. Its Medicare Advantage offerings emphasize integrated care, chronic condition management, and preventive services. 

This health insurer is expected to post quarterly earnings of $2.88 per share in its upcoming report, which represents a year-over-year change of -30.8%. Revenues are expected to be $31.92 billion, up 9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Humana, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on HUM going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Humana is a member of the Zacks Medical - HMOs industry. One other stock in the same industry, Cigna (CI - Free Report) , finished the last trading session 1.8% higher at $296.98. CI has returned -2.9% over the past month.

For Cigna, the consensus EPS estimate for the upcoming report has changed -0.1% over the past month to $7.7. This represents a change of +2.5% from what the company reported a year ago. Cigna currently has a Zacks Rank of #3 (Hold).


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