Is Now Time to Buy Humana Stock?
Investing.com | Mar 27, 2024 21:40
- Humana's stock has seen a 24% drop YTD due to slashed profit forecasts.
- Wall Street responded with analyst downgrades and lowered EPS expectations ahead of the Q1 report.
- Despite challenges, InvestingPro suggests that Humana's stock is currently undervalued by 26.7%.
- Subscribe to InvestingPro now for under $9 a month and never miss another bull market again!
Humana's (NYSE:HUM) stock experienced a significant decline of nearly 24% since the start of the year, primarily due to the company revising its full-year profit expectations downward.
This adjustment was prompted by an unexpected rise in medical cost trends. Humana attributed the revised forecast to the assumption that the elevated medical costs experienced in the fourth quarter of 2023 would persist into 2024.
Following the revision, several Wall Street analysts downgraded Humana’s rating and reduced their price targets.
This shift in perspective is evident in the adjustments to the company’s EPS forecast for the upcoming quarter, scheduled for April 24. Analysts have reduced this quarter's expectations by 41.5% for EPS from 10.32 per share to 6.03 per share over the last 12 months.
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