Humana - AI Stock Analysis

Analysis generated November 22, 2025

Humana Inc. is a leading healthcare company that offers a wide range of health insurance products and health services. The company's diverse portfolio includes Medicare Advantage plans, prescription drug plans, and commercial health plans, which serve millions of individuals across the United States. With a commitment to integrated care, Humana strives to reduce healthcare costs while improving health outcomes for its members.

Fundamental Analysis

Humana's revenue for the last quarter was $32.6 billion, representing an increase of 0.81% compared to the previous quarter. This indicates modest quarter-over-quarter growth, which is a positive sign. Year-over-year, revenue increased by 11.06%, showcasing robust growth and suggesting strong operational performance.

However, the net income for the last quarter was $194 million, down by 64.40% from the previous quarter. Compared to the same quarter last year, net income decreased by 59.58%. This substantial reduction in net income is alarming and warrants further investigation into the underlying causes.

The EBITDA for the last quarter stood at $385 million, a decrease of 65.28% from the previous quarter, and a decrease of 63.78% compared to the same quarter last year. This significant decline in EBITDA indicates that operational profitability has been under pressure, which is concerning for long-term sustainability.

The current Price-to-Earnings (P/E) ratio is 20.89, which is within a normal range, suggesting the stock is neither significantly overvalued nor undervalued. This P/E ratio indicates that the market has balanced expectations for Humana's future earnings.

Technical Analysis

The current stock price of Humana is $227.10, reflecting a decrease of 21.07% compared to a month ago. This sharp decline in the short term may be concerning for investors. Looking longer term, the stock price is down by 22.75% from a year ago, which could indicate deeper underlying issues affecting investor sentiment and company performance.

The current Simple Moving Average (SMA) over the last 10 days is 232.27, slightly lower than the previous SMA10 of 233.61. This indicates a potential downward trend in price movement and suggests bearish market conditions.

The Relative Strength Index (RSI) is 23.3, indicating that the stock is in oversold territory. This may imply a potential buying opportunity, as the stock could be undervalued at current levels.

Alternative Data Analysis

Analyzing job postings, Humana has 1,241 open positions, a 109% increase in the last couple of months. This surge in job postings indicates that the company is looking to grow and expand its workforce, which can be seen as a healthy sign of future growth potential. The business outlook among employees is currently neutral.

On the customer acquisition front, Humana's website has seen an estimated 10 million visitors, up by 79% in recent months. Additionally, Humana's mobile apps have approximately 830 daily downloads, which is up by 67%. These bullish trends in website traffic and app downloads indicate increasing customer engagement and potential for customer growth.

As for customer engagement, Humana has 24,000 followers on Instagram, up by 4%, suggesting growing interest in the brand. However, the number of followers on their Twitter page remains stagnant at 43,000, showing no change and potentially indicating a plateau in social media engagement.

The AltIndex AI score for Humana is 63, which is a buy signal, incorporating fundamental, technical, and alternative data analysis.

Conclusion and Recommendation

While Humana's fundamental analysis shows mixed signals, with a strong revenue growth trend overshadowed by declining net income and EBITDA, the technical indicators point to recent bearish market conditions. However, the alternative data analysis reveals positive trends in job postings and customer engagement, suggesting the potential for growth and expansion.

Given the significant decline in Humana's stock price and the low RSI indicating an oversold condition, combined with the AI score signaling a buy, it might be a good opportunity for long-term investors to consider adding Humana to their portfolios. Nevertheless, caution is advised due to the concerning declines in net income and EBITDA, and it is essential to keep an eye on the reasons behind these reductions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.