Trade-Ideas: Humana (HUM) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Humana ( HUM) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Humana as such a stock due to the following factors:

  • HUM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $83.6 million.
  • HUM has traded 860,221 shares today.
  • HUM is trading at a new lifetime high.

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More details on HUM:

Humana Inc., a health care company, offers a range of insurance products, and health and wellness services that incorporate an integrated approach to lifelong well-being. The company operates in three segments: Retail, Employer Group, and Healthcare Services. The stock currently has a dividend yield of 1.1%. HUM has a PE ratio of 10.3. Currently there are 11 analysts that rate Humana a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Humana has been 1.1 million shares per day over the past 30 days. Humana has a market cap of $15.2 billion and is part of the health care sector and health services industry. The stock has a beta of 0.84 and a short float of 3.2% with 5.97 days to cover. Shares are up 41.5% year to date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Humana as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • HUM's revenue growth has slightly outpaced the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 6.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HUM's debt-to-equity ratio is very low at 0.28 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 1.58, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Providers & Services industry and the overall market, HUMANA INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 36.69% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HUM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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