HUM Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Humana Inc (HUM) is not a good buy for a beginner investor with a long-term strategy at this moment. The company faces significant headwinds, including a weak 2026 outlook, declining analyst sentiment, and bearish technical indicators. While the company has shown some growth in membership and revenue, these positives are outweighed by policy risks, margin pressures, and a lack of clear positive catalysts.
The technical indicators for HUM are bearish. The MACD is negative and contracting, RSI is neutral at 21.714, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). Key support levels are at 174.386 and 167.805, while resistance levels are at 185.038 and 195.69. The stock is trading below its pivot point, signaling further downside potential.
Humana achieved a 20% membership growth in 2025 and exceeded adjusted EPS expectations for the year. Revenue increased by 11.30% YoY in Q4 2025.
Humana issued a weak 2026 outlook, with adjusted EPS guidance significantly below Wall Street estimates. Analysts have downgraded the stock, citing policy risks, margin pressures, and Medicare Advantage cost concerns. The stock has also faced significant pre-market declines (-6.6%) following the weak outlook.
In Q4 2025, Humana's revenue increased by 11.30% YoY to $32.515 billion. However, the company reported a net loss of $796 million, with EPS at -6.61. While YoY improvements were noted, the company remains unprofitable, and gross margin is at 0%.
Analyst sentiment is negative, with multiple downgrades and price target reductions. RBC Capital downgraded Humana to Sector Perform with a price target of $189, citing cost pressures and balanced risk/reward. Morgan Stanley downgraded the stock to Underweight with a price target of $174, citing policy risks and margin challenges. Guggenheim lowered its price target to $252 but maintained a Buy rating, while Bernstein remains optimistic with a higher price target of $344, citing long-term sector recovery potential.
