On July 16, 2026, Humana Inc HUM shares fell 5.2% to a current price of $386.48. This drop comes amid a volatile trading session, with the stock having experienced a 52-week high of $428.88 and a low of $163.11.
- GF Valueâ„¢ verdict: The current price is $386.48, representing a 5.1% overvaluation compared to the GF Valueâ„¢ of $367.67.
- GF Scoreâ„¢: 87/100, indicating a strong valuation based on various performance metrics.
- Most notable signal: The momentum rank stands at 9/10, suggesting strong price performance trends.
Is HUM Overvalued or Undervalued?
According to the GF Valueâ„¢, Humana Inc is currently overvalued by 5.1%, with a GF Valueâ„¢ of $367.67 compared to the current market price of $386.48. This overvaluation signals a lack of margin for safety, as investors may face potential risks if the stock price corrects towards its intrinsic value. The GF Valuation label classifies HUM as fairly valued, suggesting that while it might appear attractive at first glance, the current price does not offer a favorable risk-reward balance.
GF Valueâ„¢ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The fact that the stock is trading above its intrinsic value indicates that investors may need to exercise caution, as overvaluation often leads to market corrections. Furthermore, the lack of a substantial margin of safety implies that potential downside risks are more pronounced in the current valuation scenario.
How Does HUM's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 41.3x | 21.3x |
| Forward P/E | 43.6x | N/A |
Humana Inc's current P/E (TTM) stands at 41.3x, which is significantly above its 5-year median P/E of 21.3x, indicating that the stock is trading at a premium compared to its historical valuation. The forward P/E of 43.6x further emphasizes this trend. This analysis aligns with the GF Valueâ„¢ verdict, reinforcing the notion that HUM is overvalued at its current price level.
What Does HUM's GF Scoreâ„¢ Tell Us?
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 87 |
| Financial Strength | 5/10 |
| Profitability | 7/10 |
| Growth | 9/10 |
| Valuation | 7/10 |
| Momentum | 9/10 |
Humana Inc's GF Scoreâ„¢ of 87/100 reflects strong overall performance, particularly in growth (9/10) and momentum (9/10) categories, suggesting that the company has shown impressive price trends and growth prospects. However, the financial strength rating of 5/10 indicates that there may be some concerns regarding the company's balance sheet or financial health, which could be a point of caution for potential investors. Overall, the strong growth and momentum scores highlight the company's ability to generate earnings, but the average financial strength score could temper enthusiasm regarding its valuation.
What Are Insiders Doing with HUM Stock?
In the last three months, there have been no insider transactions involving Humana Inc stock. This lack of insider activity suggests that current management may not perceive immediate opportunities or risks that warrant buying or selling shares, which can be interpreted as a neutral signal regarding the company's short-term prospects.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, Humana Inc HUM is currently overvalued. While the company exhibits strong growth and momentum, the premium valuation compared to its historical metrics poses potential risks for investors.
For the complete analysis, visit the Humana Inc HUM stock page. You can also explore the GF Valueâ„¢ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is HUM's GF Scoreâ„¢?
HUM's GF Scoreâ„¢ is 87/100, indicating a strong valuation based on various performance metrics and suggesting potential for long-term returns.
Is HUM overvalued or undervalued?
HUM is currently overvalued with a GF Valueâ„¢ of $367.67, which indicates that its market price exceeds its intrinsic value.
What is HUM's P/E ratio?
HUM's P/E (TTM) is 41.3x, which is significantly above its 5-year median of 21.3x, indicating that the stock is trading at a premium relative to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
