Humana (HUM) could be a good pick for your portfolio, with its high cash yield, good fundamentals, and discounted valuation. Companies like this can use cash to fuel additional revenue growth, or simply pay their shareholders through dividends or buybacks. Either move makes them attractive to the market
What Is Happening With HUM Stock
HUM may be down -5.3% so far this year but is now trading at P/S (Price-to-Sales) ratio that is at a meaningful discount to its 3-month and 2-year highs, and also belowits 3-year average.
The stock may not reflect it yet, but here is what's going well for the company. Humana raised its 2025 revenue guidance to at least $128 billion, reaffirmed through Q3, showing a solid financial trajectory. Strategic Medicare Advantage plan overhauls, including exiting unprofitable markets, led to better-than-expected member retention, with membership decline revised to approximately 425,000 for the year. CenterWell Pharmacy also saw increased direct-to-consumer growth, and a recent Mercy Health agreement keeps thousands of Medicare Advantage patients in-network.
