HUM Near Crucial Support Level – Buy Signal Ahead

October 2nd, 2025 by Trefis Team
HUM: Humana logo
HUM
Humana

Humana (HUM) should be on your watchlist. Here is why – it is currently trading in the support zone ($234.43 – $259.11), levels from which it has bounced meaningfully before. In the last 10 years, the stock received buying interest at this level 6 times and subsequently went on to generate 41.2% in average peak returns.

Peak Return Days to Peak Return
1/5/2018 34.6% 306
6/21/2019 13.1% 53
10/10/2019 45.8% 126
3/25/2020 113.2% 953
10/10/2024 21.0% 46
7/30/2025 19.3% 36

But is the price action enough alone? It certainly helps if the fundamentals check out. For HUM Read Buy or Sell HUM Stock to see how convincing this buy opportunity might be.

Here are some quick data points:

  • Revenue Growth: 9.9% LTM and 11.3% last 3 year average.
  • Cash Generation: Nearly 2.0% free cash flow margin and 0.0% operating margin LTM.
  • Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for HUM was 9.9%.
  • Valuation: HUM trades at a PE multiple of 18.9

Humana provides medical benefit plans through Retail, Group and Specialty, and Healthcare Services segments, serving approximately 17 million members as of December 31, 2021.

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HUM S&P Median
Sector Health Care –
Industry Managed Health Care –
PE Ratio 18.9 23.9
LTM* Revenue Growth 9.9% 5.2%
3Y Average Annual Revenue Growth 11.3% 5.3%
Min Annual Revenue Growth Last 3Y 9.9% -0.1%
LTM* Free Cash Flow Margin 2.0% 13.3%

*LTM: Last Twelve Months

That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure

What Is Stock-Specific Risk If The Market Crashes?

That said, HUM has shown it’s no stranger to sharp drops. It plunged 77% in the Dot-Com Bubble and nearly 78% during the Global Financial Crisis. More recent shocks weren’t kind either — like the 44% slide in the Covid pandemic and 34% in 2018’s correction. The inflation shock hit too, though less severely, around 24%. The stock might have solid fundamentals, but when turmoil hits, it still takes a big hit.

But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read HUM Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.