Humana (HUM) - Bear of the Day

By Zacks | August 23, 2012 AAA

(HUM) was recently downgraded from Neutral to Underperform. The downgrade comes as the company sharpens its focus on Medicare Advantage plans that increases its
revenue dependency on one segment, rising expenditure,
overhang of litigation charges and increasing competition in the

Humana is one of the largest health care plan providers in the United States. Humana provides health insurance benefits under Health
Maintenance Organization (HMO), Private Fee-For-Service (PFFS), and Preferred Provider Organization (PPO) plans.

Humana reported second quarter 2012 operating earnings per share of $2.34, beating the Zacks Consensus Estimate of $2.23 but falling short of the year-ago earnings of $2.59 per share. Our six month target price of $62.00 equates to an 8.7x multiple of our earnings estimate for 2012.

You May Also Like

Related Analysis
  1. Stock Analysis

    Merck Up on OncoEthix Acquisition Deal, Oncology in Focus - Analyst Blog

  2. Stock Analysis

    ALLETE Buys NRG Energy's Storm Lake 1 Iowa Wind Farm - Analyst Blog

  3. Stock Analysis

    Starwood Expands in Colombia with Four Points by Sheraton - Analyst Blog

  4. Stock Analysis

    U.S. Bancorp to Pay $6M to Settle Trustee Role Related Suit - Analyst Blog

  5. Stock Analysis

    Wells Fargo Brokerage Units Fined by FINRA for AML Failures - Analyst Blog

Trading Center