Humana Inc., together with its subsidiaries, provides medical and specialty insurance products in the United States. It operates through two segments, Insurance and CenterWell. The company offers medical and supplemental benefit plans to individuals. It has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits. In addition, the company provides commercial fully-insured medical and specialty health insurance benefits comprising dental, vision, life insurance, and other supplemental health benefits, as well as administrative services only products to individuals and employer groups; military services, such as TRICARE T2017 East Region contract; and engages in the operations of pharmacy benefit manager business. Further, it operates pharmacies and senior focused primary care centers; and offers home solutions services, such as home health, hospice, and other services to its health plan members, as well as to third parties. The company sells its products through employers and employees, independent brokers and agents, sales representatives, and digital insurance agencies. The company was formerly known as Extendicare Inc. and changed its name to Humana Inc. in April 1974. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.

Фундаментальные метрики Humana Inc. показывают неоднозначную картину. Мультипликаторы, такие как P/E и P/S, значительно ниже медианы отрасли, что может указывать на потенциальную недооцененность компании. Однако, стоит отметить, что EPS остается отрицательным и значительно ниже медианы, что вызывает опасения относительно прибыльности. Долговая нагрузка компании выше медианы, что также является негативным фактором, так как это может увеличить финансовые риски. Дивиденды не выплачиваются, что может быть сигналом о проблемах с денежными потоками. Тем не менее, выручка компании демонстрирует рост, и она значительно превышает медианные значения по отрасли, что говорит о сильной позиции на рынке. В целом, несмотря на некоторые положительные аспекты, такие как высокая выручка и низкие мультипликаторы, уровень долговой нагрузки и отрицательные показатели прибыли создают значительные риски для инвесторов, что требует корректировки целевого ценового прогноза.

Humana Inc.

It has been about a month since the last earnings report for Humana (HUM). Shares have lost about 8.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Humana due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Humana Inc. before we dive into how investors and analysts have reacted as of late.
Humana Incurs Q4 Loss, Revenues Up Y/Y on CenterWell Unit Strength
Humana incurred a fourth-quarter 2025 adjusted loss of $3.96 per share, narrower than the Zacks Consensus Estimate of a loss of $4.01 per share but wider than the prior-year quarter’s loss of $2.16 per share.
Adjusted revenues improved 11.8% year over year to $32.6 billion. The top line outpaced the consensus mark by 2.4%.
The quarterly results benefited on the back of premium gains and a robust performance from the CenterWell segment, which saw a revenue jump supported by its pharmacy and primary care businesses. However, the upside was partly offset by escalating operating expenses, a sharp drop in investment income and a decline in overall medical membership.
Q4 Operational Update
Humana’s premiums totaled $30.9 billion, which advanced 11.3% year over year, and came higher than the Zacks Consensus Estimate of $30.2 billion and our estimate of $29.8 billion. Services revenues rose 28.6% year over year to $1.5 billion, higher than the consensus mark of $1.4 billion. Investment income of $132 million plunged 55.6% year over year in the quarter under review. The metric lagged the consensus mark of $273 million and our estimate of $295.7 million.
The benefit ratio came in at 93%, which deteriorated 150 basis points (bps) year over year. Total operating expenses increased 12% year over year to $33.3 billion, higher than our estimate of $31.8 billion. The year-over-year increase was due to higher benefits and operating costs. Adjusted operating cost ratio of 13% improved 20 bps year over year.
Humana incurred a net loss of $776 million, wider than the prior-year quarter’s loss of $683 million.
Q4 Segmental Update
Insurance
The segment’s adjusted revenues rose 11.3% year over year to $31.3 billion in the fourth quarter on the back of improved per-member premiums derived from HUM’s Medicare and state-based contract businesses. An expanding customer base in stand-alone prescription drug plans also drove the performance.
The unit incurred an adjusted operating loss of $923 million, wider than the prior-year quarter’s loss of $575 million. The adjusted benefit ratio deteriorated 120 bps year over year to 93.1%. Adjusted operating cost ratio of 10.8% improved 20 bps year over year.
Total medical membership of the segment was 15 million as of Dec. 31, 2025, which fell 8.2% year over year. The metric fell short of the Zacks Consensus Estimate of 15.1 million and our estimate of 15.2 million.
CenterWell
The unit recorded revenues of $6 billion in the quarter under review, which improved 16.2% year over year and surpassed the Zacks Consensus Estimate of $5.5 billion. The metric benefited from higher revenues stemming from the company’s pharmacy and primary care businesses.
Adjusted operating income dropped 10.4% year over year to $345 million. The operating cost ratio of 94.2% deteriorated 170 bps year over year due to the ongoing implementation of the v28 risk model update within the company’s primary care business and higher volumes in CenterWell Specialty Pharmacy.
Humana’s Financial Update (As of Dec. 31, 2025)
Humana exited the fourth quarter with cash and cash equivalents of $4.2 billion, which soared 89.1% from the 2024-end level. Total assets of $48.9 billion increased 5.2% from the figure at 2024-end.
Long-term debt amounted to $12.4 billion, up 11% from the figure as of Dec. 31, 2024. Debt to capitalization improved 80 bps year over year to 41.1% at the fourth-quarter end.
Total stockholders’ equity of $17.7 billion advanced 7.8% from the 2024-end figure.
HUM generated net cash from operations of $921 million in 2025, which plunged 68.9% from the 2024 figure.
HUM’s Capital Deployment Update
Humana bought back shares worth $151 million in 2025. It also paid dividends of $430 million during 2025.
Full-Year Update
Adjusted revenues of $129.8 billion grew 10.7% year over year in 2025. Adjusted earnings per share (EPS) rose 5.7% year over year to $17.14.
Premiums of $122.8 billion improved 9.6% year over year. The benefit ratio came in at 90.2% for 2025, which deteriorated 40 bps year over year.
2026 View
Revenues are estimated to be a minimum of $160 billion, which implies an 23.4% increase from the 2025 reported figure. The Insurance segment’s revenues are forecasted at a minimum of $155 billion. Revenues of the CenterWell segment are expected to be at a minimum of $25 billion.
Adjusted EPS is projected to be at least $9.00, which indicates a 47.5% decline from the 2025 figure. GAAP EPS is projected to be at least $8.89.
Management anticipates Individual Medicare Advantage membership to witness growth of around 25% in 2026. Group Medicare Advantage membership is expected to record an increase of roughly 150,000.
Membership from the Individual Medicare stand-alone PDP is expected to increase around 1,000,000 this year. State-based contracts are expected to witness membership growth within 25,000-100,000.
The GAAP benefit ratio for the Insurance segment is likely to be 92.75%, with a variability margin of plus or minus 25 basis points. The GAAP consolidated adjusted operating cost ratio is anticipated to be at 10%, with a variability margin of plus or minus 25 basis points.
GAAP cash flow from operations is estimated within $2.5-$2.9 billion. Meanwhile, capital expenditures are projected to be roughly $650 million. The adjusted effective tax rate is expected to be around 25.5% while the weighted average share count is anticipated at around 121 million.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Humana has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Humana has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Humana belongs to the Zacks Medical - HMOs industry. Another stock from the same industry, Molina (MOH), has gained 17.7% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Molina reported revenues of $11.38 billion in the last reported quarter, representing a year-over-year change of +8.3%. EPS of -$2.75 for the same period compares with $5.05 a year ago.
For the current quarter, Molina is expected to post earnings of $2.16 per share, indicating a change of -64.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -40.6% over the last 30 days.
Molina has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Why Is Humana (HUM) Down 8.5% Since Last Earnings Report?

For Immediate Release
Chicago, IL – March 12, 2026 – Today, Zacks Equity Research discusses Universal Health Services, Inc. UHS. Despite these hurdles, HMO companies like UnitedHealth Group Inc. UNH, The Cigna Group CI, Humana Inc. HUM and Centene Corp. CNC
Industry: HMO
Link: https://www.zacks.com/commentary/2882336/4-hmo-stocks-to-watch-despite-escalating-costs-nursing-shortage
The U.S. health insurance industry, referred to as Health Maintenance Organization (HMO), is leveraging technological innovation and pursuing mergers and acquisitions (M&A) to expand capabilities, enter new markets and broaden its member base. With the Federal Reserve implementing three interest rate cuts in 2025 and borrowing costs expected to remain relatively lower, insurers may find it easier to finance acquisitions, potentially supporting further industry consolidation. However, regulatory changes could tighten Medicaid eligibility and reduce ACA enrollment, affecting membership and reimbursements.
Medical expenses are rising due to the return of deferred care, increased chronic disease management and surging costs of specialty drugs like biologics and cancer therapies. Such rising costs are also weighing on companies across other industries of the broader Zacks Medical sector, such as Universal Health Services, Inc.. Despite these hurdles, HMO companies like UnitedHealth Group Inc., The Cigna Group, Humana Inc. and Centene Corp. appear well-placed to counter industry headwinds.
About the Industry
The Zacks HMO industry consists of entities (either private or public) that take care of subscribers’ basic and supplemental health services. Companies in this space primarily assume risks and assign premiums to health and medical insurance policies. Industry participants also provide administrative and managed-care services for self-funded insurance.
Services are generally offered by a network of approved care providers (called in-network), which include primary care physicians, clinical facilities, hospitals and specialists. However, out-of-network exceptions are made during emergencies or when necessary. Health insurance plans can be availed through private purchases, social insurance or social welfare programs.
4 Trends Defining the HMO Industry's Future
Escalating Medical Expenses: Healthcare costs for U.S. health insurers are increasing due to several factors. The resumption of previously delayed medical procedures, along with greater demand for routine screenings and chronic disease management, has led to increased healthcare utilization and a rise in insurance claims. The growing use of expensive prescription drugs has also contributed to higher spending.
In addition, demographic shifts, such as a rapidly aging population, are increasing demand for healthcare services. The rising prevalence of chronic diseases such as diabetes, obesity and cardiovascular conditions further adds to long-term treatment costs. As a result, the Health Benefit Ratio (a key measure of insurer profitability) has come under strain, leading to tighter profit margins.
Regulatory Hurdles: Health insurers in the domestic market are navigating a period of heightened regulatory uncertainty. The One Big Beautiful Bill Act aims to make significant changes to healthcare programs such as Medicaid, Medicare, and Affordable Care Act (ACA) marketplaces. The changes incorporate new Medicaid work requirements, stricter eligibility checks and reduced federal funding for some safety-net programs.
The tighter eligibility and lack of subsidy extensions mean a drop in enrollment for insurers. Health insurers are under pressure, as lower Medicaid and Medicare reimbursements could strain already narrow margins. Because commercial insurance products generally generate higher margins than Medicaid or ACA plans, insurers are increasingly focusing on expanding their commercial offerings. Nevertheless, the expected Medicare Advantage rate increases in 2026 could offer some relief.
Scarcity of Healthcare Professionals: The ongoing nationwide shortage of nurses and other healthcare professionals continues to strain hospital operations, especially as patient volumes rise. An aging nursing workforce, increasing levels of burnout and an uneven distribution of healthcare staff across regions have collectively contributed to the shortage. HMOs work closely with hospitals, physicians and other healthcare providers to ensure their members receive efficient and cost-effective care.
The consistency and quality of these services are crucial for maintaining customer satisfaction and encouraging the renewal of health plans. However, a declining nursing workforce may hinder hospitals’ ability to provide high-quality care, which can ultimately affect customer retention for HMO providers.
Strategic Emphasis on M&A: Alongside adopting technological innovations, HMOs often pursue mergers and acquisitions (M&A) to broaden their capabilities, enter new markets, strengthen their position in existing regions, expand their member base and enhance their nationwide presence. These strategic initiatives also support diversification, helping companies sustain a competitive advantage over peers.
With the Federal Reserve implementing three interest rate cuts in 2025, chances remain of further rate hikes in 2026. This means that borrowing costs are expected to decline, which, in turn, is likely to fuel M&A activity as industry participants can access financing at lower costs.
Zacks Industry Rank Indicates Bearish Outlook
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates tepid near-term prospects. The Zacks Medical-HMOs industry is housed within the broader Zacks Medical sector. It currently carries a Zacks Industry Rank #224, which places it in the bottom 8% of 243 Zacks industries.
Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of the negative earnings outlook for the constituent companies in aggregate.
Despite the dismal scenario, we will present a few stocks that one can retain, given their solid growth endeavors. But before that, it is worth looking at the industry’s recent stock-market performance and the valuation picture.
Industry Underperforms S&P 500, Sector
The Zacks Medical-HMO industry has declined 35.6% in the past year against the Zacks S&P 500 composite’s 24.4% growth. The Zacks Medical sector inched up 1.6% in the same time frame.
Industry's Current Valuation
On the basis of the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing medical stocks, the industry is trading at 13.71X compared with the S&P 500’s 22.01X and the sector’s 20.66X.
In the past five years, the industry has traded as high as 19.57X and as low as 11.58X, the median being 16.19X.
4 Stocks to Watch
We present four stocks from the space with a current Zacks Rank #3 (Hold). Considering the present industry scenario, it might be prudent for investors to retain these stocks in their portfolios, as these are well-placed to generate growth in the long haul.
UnitedHealth Group: Minnesota-based UnitedHealth Group’s revenue growth is supported by the strong performance of its UnitedHealthcare and Optum segments. The UnitedHealthcare division continues to benefit from enhanced Medicare and Medicaid offerings that combine affordability with appealing benefits, helping to expand its membership base and increase premium revenues. Optum’s expansion is driven by strategic acquisitions, the use of advanced technology and data-driven healthcare models.
The Zacks Consensus Estimate for UnitedHealth Group’s 2026 earnings is pegged at $17.70 per share, which implies 8.3% growth from the year-ago figure. UNH’s earnings beat estimates in two of the last four quarters and missed the mark twice, the average negative surprise being 2.38%.
Cigna: Based in Connecticut, the company continues to thrive on the solid performance of its two growth platforms—Evernorth and Cigna Healthcare. Evernorth is strengthened by its extensive range of specialty pharmacy solutions, while Cigna Healthcare benefits from a wide customer base across its U.S. Government and U.S. Commercial divisions. The health insurer broadens its product portfolio and accelerates growth through strategic acquisitions and collaborations.
The Zacks Consensus Estimate for Cigna’s 2026 earnings is pegged at $30.29 per share, indicating 1.5% growth from the prior-year figure. CI’s earnings surpassed estimates in each of the last four quarters, the average surprise being 2.67%.
Humana:Headquartered in Kentucky, Humana has achieved consistent growth, supported by higher premium revenues and a strong membership base across its Medicare and Medicaid businesses. The solid performance of these plans has enabled the company to secure several new contracts and renew existing agreements with federal and state agencies. Through its CenterWell brand, Humana remains focused on addressing the healthcare needs of the country’s aging population. In addition, the company has undertaken strategic acquisitions, including Family Physicians Group, iCare and Inclusa.
The Zacks Consensus Estimate for Humana’s 2026 earnings is pegged at $9.82 per share. The consensus mark for 2026 revenues implies 22.8% growth from the 2025 figure. HUM’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average being 6.96%.
Centene: Missouri-based Centene’s revenue growth is driven by strong performance in its Medicare and Medicaid businesses, contributing to increased contract wins and expanding membership. The ongoing inclination for Medicare Advantage plans among the aging U.S. population continues to fuel consistent demand for Centene’s Medicare offerings. The company pursues an inorganic growth strategy and enters into strategic acquisitions and partnerships with healthcare providers to broaden its capabilities, diversify its service portfolio and reinforce its presence across the country.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $3.01 per share, which indicates a 44.7% rise from the year-ago figure. CNC’s earnings outpaced estimates in three of the last four quarters and missed the mark once, the average being 60.56%.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Highlights UnitedHealth, The Cigna, Humana and Centene

The U.S. health insurance industry, referred to as Health Maintenance Organization (HMO), is leveraging technological innovation and pursuing mergers and acquisitions (M&A) to expand capabilities, enter new markets and broaden its member base. With the Federal Reserve implementing three interest rate cuts in 2025 and borrowing costs expected to remain relatively lower, insurers may find it easier to finance acquisitions, potentially supporting further industry consolidation. However, regulatory changes could tighten Medicaid eligibility and reduce ACA enrollment, affecting membership and reimbursements.
Medical expenses are rising due to the return of deferred care, increased chronic disease management and surging costs of specialty drugs like biologics and cancer therapies. Such rising costs are also weighing on companies across other industries of the broader Zacks Medical sector, such as Universal Health Services, Inc. UHS. Despite these hurdles, HMO companies like UnitedHealth Group Incorporated UNH, The Cigna Group CI, Humana Inc. HUM and Centene Corporation CNC appear well-placed to counter industry headwinds.
About the Industry
The Zacks HMO industry consists of entities (either private or public) that take care of subscribers’ basic and supplemental health services. Companies in this space primarily assume risks and assign premiums to health and medical insurance policies. Industry participants also provide administrative and managed-care services for self-funded insurance. Services are generally offered by a network of approved care providers (called in-network), which include primary care physicians, clinical facilities, hospitals and specialists. However, out-of-network exceptions are made during emergencies or when necessary. Health insurance plans can be availed through private purchases, social insurance or social welfare programs.
4 Trends Defining the HMO Industry's Future
Escalating Medical Expenses: Healthcare costs for U.S. health insurers are increasing due to several factors. The resumption of previously delayed medical procedures, along with greater demand for routine screenings and chronic disease management, has led to increased healthcare utilization and a rise in insurance claims. The growing use of expensive prescription drugs has also contributed to higher spending. In addition, demographic shifts, such as a rapidly aging population, are increasing demand for healthcare services. The rising prevalence of chronic diseases such as diabetes, obesity and cardiovascular conditions further adds to long-term treatment costs. As a result, the Health Benefit Ratio (a key measure of insurer profitability) has come under strain, leading to tighter profit margins.
Regulatory Hurdles: Health insurers in the domestic market are navigating a period of heightened regulatory uncertainty. The One Big Beautiful Bill Act aims to make significant changes to healthcare programs such as Medicaid, Medicare, and Affordable Care Act (ACA) marketplaces. The changes incorporate new Medicaid work requirements, stricter eligibility checks and reduced federal funding for some safety-net programs. The tighter eligibility and lack of subsidy extensions mean a drop in enrollment for insurers. Health insurers are under pressure, as lower Medicaid and Medicare reimbursements could strain already narrow margins. Because commercial insurance products generally generate higher margins than Medicaid or ACA plans, insurers are increasingly focusing on expanding their commercial offerings. Nevertheless, the expected Medicare Advantage rate increases in 2026 could offer some relief.
Scarcity of Healthcare Professionals: The ongoing nationwide shortage of nurses and other healthcare professionals continues to strain hospital operations, especially as patient volumes rise. An aging nursing workforce, increasing levels of burnout and an uneven distribution of healthcare staff across regions have collectively contributed to the shortage. HMOs work closely with hospitals, physicians and other healthcare providers to ensure their members receive efficient and cost-effective care. The consistency and quality of these services are crucial for maintaining customer satisfaction and encouraging the renewal of health plans. However, a declining nursing workforce may hinder hospitals’ ability to provide high-quality care, which can ultimately affect customer retention for HMO providers.
Strategic Emphasis on M&A: Alongside adopting technological innovations, HMOs often pursue mergers and acquisitions (M&A) to broaden their capabilities, enter new markets, strengthen their position in existing regions, expand their member base and enhance their nationwide presence. These strategic initiatives also support diversification, helping companies sustain a competitive advantage over peers. With the Federal Reserve implementing three interest rate cuts in 2025, chances remain of further rate hikes in 2026. This means that borrowing costs are expected to decline, which, in turn, is likely to fuel M&A activity as industry participants can access financing at lower costs.
Zacks Industry Rank Indicates Bearish Outlook
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all member stocks, indicates tepid near-term prospects. The Zacks Medical-HMOs industry is housed within the broader Zacks Medical sector. It currently carries a Zacks Industry Rank #224, which places it in the bottom 8% of 243 Zacks industries.
Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of the negative earnings outlook for the constituent companies in aggregate.
Despite the dismal scenario, we will present a few stocks that one can retain, given their solid growth endeavors. But before that, it is worth looking at the industry’s recent stock-market performance and the valuation picture.
Industry Underperforms S&P 500, Sector
The Zacks Medical-HMO industry has declined 35.6% in the past year against the Zacks S&P 500 composite’s 24.4% growth. The Zacks Medical sector inched up 1.6% in the same time frame.
One-Year Price Performance
Image Source: Zacks Investment Research
Industry's Current Valuation
On the basis of the forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing medical stocks, the industry is trading at 13.71X compared with the S&P 500’s 22.01X and the sector’s 20.66X.
In the past five years, the industry has traded as high as 19.57X and as low as 11.58X, the median being 16.19X, as the chart below shows.
Forward 12-Month Price/Earnings (P/E) Ratio
Image Source: Zacks Investment Research
Image Source: Zacks Investment Research
4 Stocks to Watch
We present four stocks from the space with a current Zacks Rank #3 (Hold). Considering the present industry scenario, it might be prudent for investors to retain these stocks in their portfolios, as these are well-placed to generate growth in the long haul.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth Group: Minnesota-based UnitedHealth Group’s revenue growth is supported by the strong performance of its UnitedHealthcare and Optum segments. The UnitedHealthcare division continues to benefit from enhanced Medicare and Medicaid offerings that combine affordability with appealing benefits, helping to expand its membership base and increase premium revenues. Optum’s expansion is driven by strategic acquisitions, the use of advanced technology and data-driven healthcare models.
The Zacks Consensus Estimate for UnitedHealth Group’s 2026 earnings is pegged at $17.70 per share, which implies 8.3% growth from the year-ago figure. UNH’s earnings beat estimates in two of the last four quarters and missed the mark twice, the average negative surprise being 2.38%.
Price & Consensus: UNH
Image Source: Zacks Investment Research
Cigna: Based in Connecticut, the company continues to thrive on the solid performance of its two growth platforms—Evernorth and Cigna Healthcare. Evernorth is strengthened by its extensive range of specialty pharmacy solutions, while Cigna Healthcare benefits from a wide customer base across its U.S. Government and U.S. Commercial divisions. The health insurer broadens its product portfolio and accelerates growth through strategic acquisitions and collaborations.
The Zacks Consensus Estimate for Cigna’s 2026 earnings is pegged at $30.29 per share, indicating 1.5% growth from the prior-year figure. CI’s earnings surpassed estimates in each of the last four quarters, the average surprise being 2.67%.
Price & Consensus: CI
Image Source: Zacks Investment Research
Humana: Headquartered in Kentucky, Humana has achieved consistent growth, supported by higher premium revenues and a strong membership base across its Medicare and Medicaid businesses. The solid performance of these plans has enabled the company to secure several new contracts and renew existing agreements with federal and state agencies. Through its CenterWell brand, Humana remains focused on addressing the healthcare needs of the country’s aging population. In addition, the company has undertaken strategic acquisitions, including Family Physicians Group, iCare and Inclusa.
The Zacks Consensus Estimate for Humana’s 2026 earnings is pegged at $9.82 per share. The consensus mark for 2026 revenues implies 22.8% growth from the 2025 figure. HUM’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average being 6.96%.
Price & Consensus: HUM
Image Source: Zacks Investment Research
Centene: Missouri-based Centene’s revenue growth is driven by strong performance in its Medicare and Medicaid businesses, contributing to increased contract wins and expanding membership. The ongoing inclination for Medicare Advantage plans among the aging U.S. population continues to fuel consistent demand for Centene’s Medicare offerings. The company pursues an inorganic growth strategy and enters into strategic acquisitions and partnerships with healthcare providers to broaden its capabilities, diversify its service portfolio and reinforce its presence across the country.
The Zacks Consensus Estimate for Centene’s 2026 earnings is pegged at $3.01 per share, which indicates a 44.7% rise from the year-ago figure. CNC’s earnings outpaced estimates in three of the last four quarters and missed the mark once, the average being 60.56%.
Price & Consensus: CNC
Image Source: Zacks Investment Research
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4 HMO Stocks to Watch Despite Escalating Costs, Nursing Shortage

UnitedHealth Group Incorporated UNH is accelerating the integration of artificial intelligence (AI) throughout its healthcare network, and its pharmacy benefits division is making significant strides. The company has rolled out new AI features in Optum Rx aimed at better identifying fraud, waste and abuse (FWA) in pharmacy claims. This initiative is part of UNH’s larger plan to leverage data analytics to manage healthcare costs while enhancing the efficiency of its service platforms.
The AI-powered system analyzes massive volumes of prescription and billing data to identify unusual patterns that could indicate fraudulent or improper claims. It can highlight issues like duplicate prescriptions, odd refill frequencies or discrepancies in billing information. By automating large parts of the review process, Optum Rx allows its compliance teams to focus on the most relevant cases rather than manually screening thousands of routine transactions.
Technology also plays a crucial role in enhancing patient safety. The AI models can detect potential medication risks, including overlapping drug therapies or unusual dosing patterns before prescriptions are finalized. This provides pharmacists and auditors an opportunity to intervene early, reducing the likelihood of medication errors while strengthening regulatory compliance across pharmacy networks.
This initiative reflects how UNH is leveraging technology to boost operational efficiency across its healthcare services platform. With increasing scrutiny on pharmacy benefit managers, AI-powered monitoring tools could enable Optum Rx to improve transparency, minimize cost leakage and foster sustainable growth for the UnitedHealth ecosystem.
How Are Competitors Faring?
Some of UNH’s major competitors in the AI-enabled healthcare solutions are Elevance Health, Inc. ELV and Humana Inc. HUM.
Elevance Health is also expanding its use of advanced analytics and AI to strengthen claims monitoring and care management. ELV is investing in data platforms within its Carelon unit to identify billing irregularities, optimize pharmacy utilization and improve overall cost transparency.
Humana has been integrating AI and predictive analytics across its pharmacy and care delivery platforms. Through its pharmacy services and insurance operations, HUM uses data-driven tools to detect abnormal claim patterns and improve oversight of prescription utilization and billing practices.
UnitedHealth’s Price Performance, Valuation & Estimates
Shares of UNH have declined 40.4% in the past year compared with the industry’s fall of 35.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, UnitedHealth trades at a forward price-to-earnings ratio of 15.84, above the industry average of 13.81. UNH carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UnitedHealth’s 2026 earnings is pegged at $17.70 per share, implying 8.3% growth from the year-ago period.
Image Source: Zacks Investment Research
UNH stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UNH Deploys AI in Optum Rx to Tackle Pharmacy Fraud and Cost Leakage

Investors in Humana Inc. HUM need to pay close attention to the stock based on moves in the options market lately. That is because the Mar 20, 2026 $32.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Humana share, but what is the fundamental picture for the company? Currently, Humana is a Zacks Rank #4 (Sell) in the Medical - HMOs Industry that ranks in the Bottom 5% of our Zacks Industry Rank. Over the last 60 days, two analysts have increased their estimates for the current quarter, while five have revised their estimates downwards. The net effect has taken our Zacks Consensus Estimate for the current quarter to move from $9.99 per share to $9.84 per share in the same time period.
Given the way analysts feel about Humana right now, this huge implied volatility could mean there’s a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is the Options Market Predicting a Spike in Humana Stock?

In afternoon trading on Thursday, Services stocks are the best performing sector, up 1.1%. Within the sector, TKO Group Holdings Inc (Symbol: TKO) and Expedia Group Inc (Symbol: EXPE) are two large stocks leading the way, showing a gain of 7.8% and 5.2%, respectively. Among the largest ETFs, one ETF closely following services stocks is the iShares U.S. Consumer Services ETF (Symbol: IYC), which is up 0.4% on the day, and down 0.61% year-to-date. TKO Group Holdings Inc, meanwhile, is up 6.84% year-to-date, and Expedia Group Inc, is down 24.32% year-to-date. Combined, TKO and EXPE make up approximately 0.6% of the underlying holdings of IYC.
The next best performing sector is the Financial sector, higher by 1.0%. Among large Financial stocks, Nasdaq OMX Group (Symbol: NDAQ) and Humana Inc. (Symbol: HUM) are the most notable, showing a gain of 5.1% and 4.1%, respectively. One ETF closely tracking Financial stocks is the Financial Select Sector SPDR ETF (XLF), which is up 1.0% in midday trading, and down 4.37% on a year-to-date basis. Nasdaq OMX Group, meanwhile, is down 9.09% year-to-date, and Humana Inc., is down 28.41% year-to-date. NDAQ makes up approximately 0.5% of the underlying holdings of XLF.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Thursday. As you can see, five sectors are up on the day, while three sectors are down.
Technology & Communications
-0.1%
Also see:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Thursday Sector Leaders: Services, Financial

The landscape of managed care is undergoing significant changes due to rising medical utilization, evolving reimbursement models and ongoing cost challenges. Meanwhile, the aging population and the changing government-funded programs scenario are also playing a key role in shaping the growth patterns within the health insurance industry. Within this backdrop, UnitedHealth Group Incorporated UNH and Humana Inc. HUM stand out as two major players in U.S. managed care, with significant exposure to Medicare Advantage and other government programs.
Both companies operate at scale and aim to manage medical costs while expanding care delivery capabilities, yet they differ in diversification, vertical integration and revenue mix. UNH combines a broad insurance platform with a sizable health services arm, while HUM maintains a more concentrated focus on government-sponsored plans and value-based care initiatives.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which stock offers greater upside right now.
The Case for UNH
UnitedHealth, with a current market cap of $248.2 billion, continues to lean on its diversified operating model, combining UnitedHealthcare’s insurance platform with Optum’s health services businesses. This diversified structure allows the company to capture value across multiple points in the healthcare chain rather than relying solely on premium growth. Its Optum arm, which includes pharmacy services and data-driven care solutions, provides an additional earnings engine that complements its insurance operations. The company’s total revenues rose 12.3% year over year in the fourth quarter of 2025, with 17.5% growth at UnitedHealthcare and 8% growth at Optum.
The company continues to advance technology-led growth initiatives across its operations. It has been expanding the use of artificial intelligence and advanced analytics in areas such as claims processing, care coordination and pharmacy management to improve accuracy, reduce administrative costs and enhance medical management.
Scale remains one of UNH’s strongest competitive advantages. With a nationwide footprint and deep relationships across employers, Medicare and Medicaid, the company benefits from pricing leverage and strong provider contracting power. In the last reported quarter, UNH’s Medicare Advantage membership increased 7.6% year over year, along with 0.8% growth in domestic medical membership. It missed earnings estimates twice in the past four quarters and beat on the other occasions.
UnitedHealth Group Incorporated Price, Consensus and EPS Surprise
UnitedHealth Group Incorporated price-consensus-eps-surprise-chart | UnitedHealth Group Incorporated Quote
Financially, UNH is in a solid position. It ended 2025 with $28.1 billion in cash and short-term investments, sufficient to cover its short-term borrowings and current maturities of long-term debt, which stands at $6.1 billion. Its total debt-to-capital of 41.6% is above HUM’s 41.1% but below the industry’s 44.3%.
However, rising medical utilization has squeezed profit margins. In the fourth quarter of 2025, the company’s medical care ratio rose to 92.4% compared with 85.1% the previous year, indicating that rising medical costs are eating into the premiums collected. Medical costs surged 22.4% year over year in the quarter.
The Case for HUM
Humana, with a market cap of $21.1 billion, sets itself apart with a sharp focus on government-sponsored healthcare, especially in the realm of Medicare Advantage. This specialization allows it to develop a deep understanding of senior healthcare management, enabling the creation of tailored benefit structures and care programs that cater specifically to the needs of aging populations. In the fourth quarter of 2025, its total revenues rose 11.3% year over year.
The company has broadened its primary and home-based care services, which boosts its ability to improve patient outcomes beyond traditional insurance coverage. By investing in senior-focused care delivery models, HUM aims to control medical costs more effectively while enhancing member engagement and satisfaction. Its specialty membership rose 4% year over year, along with 7.6% growth in Medicare stand-alone PDP in the fourth quarter of 2025. It beat earnings in three of the past four quarters with an average surprise of 7%.
Humana Inc. Price, Consensus and EPS Surprise
As of Dec. 31, 2025, the company had cash and cash equivalents of $4.2 billion, with no short-term debt, which implies a solid capital position. Humana has been returning excess capital to its shareholders in the past several years. It bought back shares worth $151 million in 2025. The company also paid dividends of $430 million during 2025. However, its dividend yield of 2% is below UNH’s 3.1%.
Humana has been witnessing increasing operating expenses for the past few years. In 2022, 2023, 2024 and in the fourth quarter of 2025, the metric jumped 11.5%, 14.9%, 12.5% and 12%, year over year, respectively, due to higher benefits and operating costs. The benefit ratio came in at 93% in fourth-quarter 2025, which deteriorated 150 basis points year over year. Unlike UNH, HUM operates at a smaller scale and relies heavily on Medicare Advantage, making its earnings more exposed to shifts in government reimbursement rates and STAR rating fluctuations. Also, its return on asset of 4.1% is below UNH’s 4.8%.
How Do Estimates Compare for UNH & HUM?
The Zacks Consensus Estimate favors UNH at this stage. The consensus estimate for UNH’s 2026 earnings indicates an 8.2% increase from a year ago. Over the past month, the estimate has witnessed nine upward revisions with two downward adjustments. Meanwhile, the consensus estimate for revenues suggests a 1.6% decline.
On the other hand, the Zacks Consensus Estimate for HUM’s 2026 revenues indicates 18.6% year-over-year growth, but the same for EPS signals a massive 41% decline. Over the past month, the estimate has seen one upward revision with six downward adjustments.
Valuation: UNH vs. HUM
From a valuation standpoint, UnitedHealth may appear slightly more expensive than the industry at first glance, but it represents its size, operational consistency and business diversification. Humana’s stock currently trades at a slightly higher multiple than UNH. UnitedHealth is currently priced at 15.76X forward 12-month earnings, compared to Humana’s 15.99X, both above the industry average of 13.48X.
Image Source: Zacks Investment Research
UNH currently trades below its average analyst price target of $361.43, implying a 27.2% potential upside from current levels. HUM also trades below its average analyst price target of $219.13, implying an attractive 24.5% potential upside from current levels.
Price Performance Comparison
Over the past six months, UNH has shed less value than HUM and the industry. However, the S&P 500 increased 8.2% during this time.
Price Performance – UNH, HUM, Industry & S&P 500
Image Source: Zacks Investment Research
Conclusion
While both managed care giants are navigating higher medical costs and regulatory complexity, UnitedHealth appears better positioned at this stage. Its broader scale, diversified revenue streams and strong balance sheet provide a cushion against utilization pressures and reimbursement volatility. In contrast, Humana remains more exposed to Medicare Advantage concentration and margin swings. Considering earnings stability, estimate revisions and operational breadth, UNH stands out as the more compelling upside candidate right now.
While UnitedHealth currently carries a Zacks Rank #3 (Hold), Humana has a Zacks Rank #4 (Sell).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UnitedHealth vs. Humana: Which Healthcare Stock Has More Upside Now?

The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Humana Inc. (Symbol: HUM) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making Humana Inc. an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of HUM entered into oversold territory, changing hands as low as $404.30 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of Humana Inc., the RSI reading has hit 27.5 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 54.6. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, HUM's recent annualized dividend of 2.8/share (currently paid in quarterly installments) works out to an annual yield of 0.61% based upon the recent $455.83 share price.
A bullish investor could look at HUM's 27.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on HUM is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Humana Enters Oversold Territory

The board of directors of AbbVie today declared a quarterly cash dividend of $1.73 per share. The cash dividend is payable May 15, 2026, to stockholders of record at the close of business on April 15, 2026. Since the company's inception in 2013, AbbVie has increased its dividend by more than 330 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
The Board of Directors of Sherwin-Williams today announced a regular quarterly dividend of $0.80 per common share, payable on March 13, 2026, to shareholders of record on March 2, 2026. This increase follows 47 consecutive years of dividend increases.
M&T Bank announced that it has declared a quarterly cash dividend of $1.50 per share on its common stock. The dividend will be payable March 31, 2026, to shareholders of record at the close of business on March 2, 2026.
Brown-Forman announced today that its Board of Directors declared a regular quarterly cash dividend of $0.2310 per share on its Class A and Class B Common Stock. The dividend is payable on April 1, 2026, to stockholders of record on March 9, 2026. Brown-Forman, a member of the prestigious S&P 500 Dividend Aristocrats index, has paid regular quarterly cash dividends for 82 years and has increased the cash dividend for 42 consecutive years.
Ebay pursuant to delegated authority from our Board of Directors, declared a first quarter 2026 cash dividend of $0.31 per share of the company's common stock. The dividend is payable on March 20, 2026 to stockholders of record as of March 6, 2026.
Halliburton announced today that its board of directors has declared a 2026 first quarter dividend of seventeen cents a share on the Company's common stock payable on March 25, 2026, to shareholders of record at the close of business on March 4, 2026.
Humana announced today that its Board of Directors has declared a cash dividend to stockholders of $0.885 per share payable on April 24, 2026 to stockholders of record as of the close of business on March 27, 2026.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Daily Dividend Report: ABBV,SHW,MTB,BFA,EBAY,HAL,HUM

Key Points
The firm initiated a new position by purchasing about 1.6 million shares.
It position equals 15.3% of the fund’s 13F assets under management.
Masimo enters Naya Capital’s portfolio as one of only five reportable holdings
According to an SEC filing dated Feb. 18, Naya Capital Management UK Ltd disclosed a new position in Masimo (NASDAQ:MASI), acquiring nearly 1.6 million shares.
Initiated a new position valued at about $203 million
Position equals 15.3% of the fund’s 13F assets under management
Masimo enters Naya Capital’s portfolio as one of only five reportable holdings
What else to know
Top positions after the filing:
HUM: $318.4 million (24.0% of AUM)
UNH: $301.3 million (22.7% of AUM)
WWD: $297.1 million (22.4% of AUM)
FWONK: $208.2 million (15.7% of AUM)
Company overview
Metric
Value
Price (as of market close Feb. 18)
$175.61
Market capitalization
$9.4 billion
Revenue (TTM)
$1.7 billion
Net income (TTM)
($203.8 million)
Company snapshot
Masimo is a leading provider of advanced noninvasive monitoring solutions, focusing on technologies that improve patient care and operational efficiency in healthcare settings. The company leverages proprietary signal extraction and automation platforms to address critical needs in hospital and outpatient environments.
Develops and markets noninvasive patient monitoring technologies, including pulse oximetry, brain function monitoring, capnography, regional oximetry, hemodynamic monitoring, and hospital automation platforms.
Serves hospitals, emergency medical services, home care providers, long-term care facilities, physician offices, veterinarians, and consumers.
What this transaction means for investors
Naya Capital Management only has five disclosed positions in its SEC 13F filing. However, these total over $1.3 billion.
The firm initiated its position in Masimo in a significant way. Previously owning no shares, it purchased nearly 1.6 million shares during the fourth quarter. These were valued at nearly $203 million.
It’s Naya Capital’s fifth-largest position, according to its filing. However, it made up 15.3% of its disclosed assets.
The firm’s confidence came as Masimo’s shares lost 2.6% over the last year through Feb. 17. During this period, the S&P 500 index returned 13.7%, and the NASDAQ Composite returned 14.3%.
However, the shares jumped more than 34%, from $130.15 to $174.69 on Feb. 17. That’s because Danaher (NYSE: DHR) announced it would buy the company for $9.9 billion, or $180 a share, in cash.
While Naya Capital’s timing proved fortunate, there’s not much upside left for investors, but plenty of downside if the deal falls through. Hence, it’s best to pass on the shares.
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Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Masimo. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	24.23 22.15
Price/Sales	0.18 3.03
P/B	1.68 2.28
P/FCF	20.17 19.25

Indicator	TTM Median
ROE	7.26 24.30
ROA	2.38 6.50
ROI	3.87 9.86
Net Worth	22.93 0.21
Quick Ratio	0.00 1.73
Current Ratio	0.74 2.83

Indicator	TTM Median
Net Profit Margin	0.92 11.09
Operating Margin	2.35 14.34
Gross Margin	36.69 69.15
Return on tangible equity	15.83 53.53

Indicator	TTM Median
EPS	-3.96 0.37
EPS Forecast	-4.01 0.37
Revenue	32.65B 17.00M
Gross Profit	32.52B —
EBITDA	604.00M —

Humana Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue