Humana (HUM) Stock Higher, Increases Q2, 2016 Guidance
NEW YORK (TheStreet) -- Shares of Humana (HUM) - Get Report are rising 5.62% to $167.32 this morning as the company raised its guidance for the 2016 second quarter and full year, MarketWatch reports.
The company said that the increase reflects a better-than-expected performance in both its Individual Medicare Advantage and healthcare services businesses, partially offset by persisting weakness in the individual commercial medical business.
For the 2016 second quarter, Humana is forecasting earnings per share of $2.28, higher than the company's prior estimate of $2.15 and analysts' forecast of $2.19 per share.
Humana expects full year earnings per share of at least $9.25, up from previous estimates of $8.85.
Also, Humana is under the spotlight today as the Department of Justice files a lawsuit against the company and Aetna (AET) over their proposed merger. Aetna agreed to acquire the Louisville, KY-based healthcare company for $33 billion.
Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B+.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: HUM
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.