Top 10 Health Insurance Stocks To Buy

8. Humana Inc. (NYSE:HUM)

Number of Hedge Fund Holders: 64

Humana Inc. (NYSE:HUM) is focused on improving health and well-being by providing a variety of healthcare benefits to its medical and specialty members. These include fully insured medical and specialty health insurance that covers vision, dental, and supplemental health benefits, as well as administrative services only (ASO) packages for individuals and employers.

The fourth quarter of 2024 marked the end of a difficult year for Humana’s financial performance. However, the company’s fiscal year 2025 outlook shows a reversal, with adjusted EPS of at least $16.25, slightly below the average prediction of $16.78. Revenue predictions for FY25 range between $126 billion and $128 billion, significantly higher than the $120 billion average estimate.

Bernstein SocGen reduced Humana Inc.’s (NYSE:HUM) price objective from $322 to $313 on February 20, but maintained an Outperform rating on the healthcare company’s shares. Despite the lower price target, Bernstein SocGen analyst Lance Wilkes indicated ongoing optimism in Humana, predicting a possible 20+% upside. Wilkes emphasized Humana’s ability to gain from recovering Medicare Advantage (MA) and Medicaid margins, as well as a stabilization in usage rates, which are projected to return to normal levels.