Yahoo Finance Why Humana (HUM) is a Top Value Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Humana (HUM)
Founded in 1964 and headquartered in Louisville, KY, Humana Inc. is one of the largest health care plan providers in the United States. It was organized as a Delaware corporation in the year 1964. It provides health insurance benefits under Health Maintenance Organization (HMO), Private Fee-For-Service (PFFS), and Preferred Provider Organization (PPO) plans. The company also provides other benefits with specialty products including dental, vision, and other supplementary benefits.
HUM sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Medical - HMOs industry's P/E of 16.2X, shares of Humana are trading at a forward P/E of 16.8X. HUM also has a PEG Ratio of 1.2, a Price/Cash Flow ratio of 14.9X, and a Price/Sales ratio of 0.6X.
A company's earnings performance is important for value investors as well. For fiscal 2023, four analysts revised their earnings estimate higher in the last 60 days for HUM, while the Zacks Consensus Estimate has increased $0.00 to $28.25 per share. HUM also holds an average earnings surprise of 5.8%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding HUM to their portfolios.
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Humana Inc. (HUM) : Free Stock Analysis Report
