HUM News and Headlines - Humana Inc
- New Purchases: SRLN,
Investors may be interested in the following health care companies, as they have expanded their revenue per share and Ebitda per share by more than 10% over the trailing five-year and 10-year periods through April 28.
UnitedHealth Group Inc.'s (UNH) revenue per share and Ebitda per share have increased 10.20% and 14.70%, respectively, over the past five years. Over a 10-year period, they grew by 13.10% and 12.80%.
The U.S. private health insurance provider has a market cap of $369.63 billion and an enterprise value of $392.97 billion.
The price-book ratio is 5.33. The share price has
GuruFocus had the pleasure of hosting a presentation with Win Murray. Murray has been a co-manager of the Oakmark Select Fund since 2013. He also serves as the director of U.S. equity research at Harris Associates and is a vice president of the Oakmark Funds.
He joined Harris Associates in 2003 as an equity analyst after working in investment roles at Colonial Management Associates, Federated Investors and ASB Capital Management.
Murray holds an MBA from Georgia State University (1996) and a B.A. in Russian/East European studies from the University of North Carolina (1992).
About Oakmark and Harris
When screening the market for value opportunities, one method is to pick stocks whose trailing 12-month price-to-free cash flow ratios are low compared to that of the S&P 500 Index, which stands at around 13.18 currently.
Thus, investors may want to consider the following stocks as they meet the above criteria and are recommended by sell-side analysts on Wall Street.
The first stock to consider is Cigna Corp. (CI), a Bloomfield, Connecticut-based health care plans company.
Cigna's price-to-free cash flow ratio is 9.92 as of April 16, ranking higher than 53% of 19 companies that operate in the health
Humana (HUM) is a leader and near pure play in the fastest growing sector of managed care, Medicare Advantage. Humana's growth and scale advantages have allowed the company to make targeted investments in its members' health, resulting in fewer unnecessary hospitalizations and lower chronic care costs. The company reinvests most of these savings back into the health plan, resulting in a continuously improving customer value proposition. Further, we believe Humana has a long runway ahead as it benefits from an aging population and continued conversion of the more than 60% of seniors who are still enrolled in traditional Medicare.
The Oakmark Global Select Fund had a strong quarter in terms of both absolute and relative performance, returning 10.87% for the period ending March 31. The benchmark, MSCI World Index, returned 4.92% for the same quarter. Since its inception in October 2006, the Fund has returned an average of 8.86% per year, outperforming the MSCI World Index's annualized gain of 7.18% over the same period.
Daimler AG (XTER:DAI) was a top contributor for the first quarter as the German automotive manufacturer's share price soared on the announcement it would spin off a majority stake in Daimler Truck. In our view,
The third U.S. addition was Humana (HUM), a leader and near pure play in the fastest growing sector of managed care, Medicare Advantage. Each year, more seniors choose Medicare Advantage over traditional Medicare due to the compelling combination of lower costs and expanded benefits. Humana's scale advantages and focus on senior care allow the company to make targeted investments in its members' health, culminating in fewer unnecessary hospitalizations and lower chronic care costs. Much of these savings are then reinvested in the health plan, resulting in a continuously improving customer value proposition. The company's brand also resonates well in
It was an eventful quarter. Israel experienced another inconclusive election, Turkey's Recep Tayyip Erdogan fired another central bank head and caused a local currency crisis, Italy installed former European Central Bank leader Mario Draghi as prime minister, and the Suez Canal was blocked for six days due to a grounded container ship, which threw logistics out of balance around the world. And this is just a small sample of global events. In the financial sphere, failures of both a family office hedge fund and a little-known supply chain finance entity caused significant losses for funding institutions. These
The stock of Humana (NYSE:HUM, 30-year Financials) appears to be fairly valued, according to GuruFocus Value calculation. GuruFocus Value is GuruFocus' estimate of the fair value at which the stock should be traded. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its future
Investors often look to top fund managers to glean information on the best strategies and generate new investment ideas.
While it is never a good idea to simply invest in what famous investors have in their portfolios (at least not without conducting your own due diligence), it can provide a valuable starting point for further research. After all, the success of these fund managers is due to skill and research just as much as luck.
According to the GuruFocus Scoreboard, which tracks the fund performance of gurus based on their 13F filings, the firms with the highest average annual
According to the GuruFocus All-in-One Screener, a Premium feature, the following companies have high business predictability ratings and wide margins of safety as of March 16.
HCA Healthcare Inc. (HCA) has a 4.5-star business predictability rank and, according to the discounted cash flow calculator, an 11.88% margin of safety at an average price of $189.43 per share.
The health care provider has a market cap of $64.39 billion and an enterprise value of $97.97 billion. Over the past five years, its revenue and earnings per share have increased 5.90% and 16.90%.
Over the past 12 months, the stock
According to the GuruFocus All-in-One Screener, a Premium feature, the following guru-owned health care stocks have grown their book value per share over the past decade through March 11.
Book value per share is calculated as total equity minus preferred stock, divided by shares outstanding. Theoretically, it is what shareholders will receive if a company is liquidated. Total equity is a balance sheet item and is equal to total assets minus total liabilities.
Since the book value per share may not reflect the company's true value, some investors check the tangible book value to confirm their investment ideas.
If you are looking for bargain opportunities, you may want to have a look at the three securities listed below, as they seem underestimated by the market. Their trailing 12-month and forward price-earnings to growth (PEG) ratios trade below 1.5, which is the historical mean PEG ratio of the S&P 500 index as of Feb. 25.
The PEG ratio is calculated as the price-earnings ratio without non-recurring items divided by the five-year Ebitda growth rate. The forward PEG ratio is calculated as the price-earnings ratio without NRI divided by the expected Ebitda growth rate over the next five years based
According to the GuruFocus All-in-One Screener, a Premium feature, as of Jan. 15, the following guru-held companies have positive future earnings estimates from Morningstar analysts.
The Home Depot
Shares of The Home Depot Inc. (HD) were trading around $268.34 at close on Friday.
The home improvement specialty retailer has a GuruFocus profitability rating of 9 out of 10. Its earnings per share have risen 16.70% over the past three years.
Analysts project a three-year to five-year earnings growth rate of 9.62%. The return on assets (ROA) of 21.35% is outperforming 98% of companies in the retail, cyclical industry.
According to the All-in-one Screener, a Premium feature of GuruFocus, four Peter Lynch Growth stocks with high cash-to-debt ratios are Caledonia Mining Corp. PLC (CMCL), Humana Inc. (HUM), Jewett-Cameron Trading Co. Ltd. (JCTCF) and Worthington Industries Inc. (WOR).
The Peter Lynch Growth Screen utilizes the Fidelity Magellan Fund manager's concept that one can compare a company's price line to an earnings line at 15 times earnings to determine if a stock is overvalued or undervalued. Stocks with a price-earnings ratio of less than 15 are considered undervalued based on Lynch's "quick" valuation method.
When Centene Corp. (CNC) announced the acquisition of Magellan Health Inc. (MGLN) on Jan. 7, one line in the news release must have been music to investors' ears. The deal, Centene said, will create shareholder value through cost synergies and new growth opportunities.
One week later, it already has. The stock of the St. Louis-based health insurer is up more than 11% to just under $69. But the company still has ground to make up if it's going to match the one-year gains of the other industry leaders: UnitedHealth Group Inc. (UNH), up 20%, Humana Inc. (HUM), up nearly 17%,
As the Covid-19 vaccines from Pfizer (PFE), BioNTech (BNTX) and Moderna (MRNA) continue to be distributed throughout the U.S. and internationally to doctors, nurses, the elderly and other vulnerable populations, investors are looking to the health care industry to find value.
Even though the vaccine rollout has been slower than anticipated, drugstore chain CVS Health Corp. (CVS) reported on Wednesday that it is on track to complete the first round of vaccinations at nursing homes across the country by Jan. 25. The Trump administration partnered with CVS, Walgreens Boots Alliance Inc. (WBA) and other retail pharmacies in order to treat
Investors looking for opportunities amid reasonably priced growing companies may be interested in the three stocks listed below, as their share prices are trading lower than their Peter Lynch Fair Values.
The Peter Lynch Fair Value, which is based on the idea that the fair price-earnings (PE) ratio for a growing company matches its growth rate, is a result of the combination of the following three factors:
- The stock's PEG ratio.
- The stock's five-year Ebitda growth rate.
- The stock's earnings per share (EPS) without non-recurring items (NRI) for the trailing twelve months (TTM) through the most recent quarter.