Humana Stock Buy Recommendation Reiterated (HUM)
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- Despite its growing revenue, the company underperformed as compared with the industry average of 15.2%. Since the same quarter one year prior, revenues slightly increased by 5.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- HUM's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, HUM has a quick ratio of 1.57, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 111.40% to $205.00 million when compared to the same quarter last year. In addition, HUMANA INC has also vastly surpassed the industry average cash flow growth rate of -16.92%.
- HUMANA INC reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, HUMANA INC reported lower earnings of $7.46 versus $8.44 in the prior year. This year, the market expects an improvement in earnings ($7.90 versus $7.46).
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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