10 Oversold Growth Stocks to Invest In

1) Humana Inc. (NYSE:HUM)

Forward P/E (As of 14 October): 13.5x

% Decline on a YD Basis: ~43%

Number of Hedge Fund Holders: 71

Humana Inc. (NYSE:HUM) offers medical and specialty insurance products in the US.

Humana Inc. (NYSE:HUM)’s diversified, value-based healthcare delivery and services model continued to be a cornerstone of its success. Wall Street analysts believe that its focus on serving Medicare-eligible and disabled individuals via diversified healthcare delivery and services should continue to act as a primary growth enabler.

Humana Inc. (NYSE:HUM)’s strategy emphasizes leveraging its healthcare delivery and services infrastructure in a bid to improve outcomes and reduce costs. The company’s consistently high Star ratings in Medicare Advantage plans continued to be a key competitive advantage, aiding its market position and attracting beneficiaries. Humana Inc. (NYSE:HUM)’s efforts to enhance its healthcare delivery infrastructure should improve outcomes and cost efficiency over the long term. Wall Street believes that these improvements remain critical as the company plans to differentiate itself in a competitive market and address challenges.

Humana Inc. (NYSE:HUM)’s competitive advantage, stemming from high Star ratings and improving healthcare delivery infrastructure, should aid its future revenue growth. Through leveraging advanced analytics, telemedicine, and integrated care models, Humana Inc. (NYSE:HUM) is expected to improve the efficiency of care delivery. This should result in better health outcomes for members and lower overall healthcare costs.

As per Wall Street, the shares of the company have an average price target of $296.37. Diamond Hill Capital, an investment management company, released its second-quarter 2024 investor letter. Here is what the fund said:

“Other top Q2 contributors included Humana Inc. (NYSE:HUM) and Boston Scientific Corporation. Shares of health insurance company Humana rebounded from their recent downturn, which was tied to investors’ concerns about weaker-than-expected Medicare Advantage rates for 2025 and was the byproduct of an overall difficult operating environment.”

While we acknowledge the potential of HUM as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than HUM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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