Should You Buy Humana Stock in 2025? Full NZ Guide
Is Humana stock a buy right now?
ScoreWith Humana Inc. (NYSE: HUM) trading at around $230.08 USD as of 30 May 2025 and an average daily volume of approximately 1.74 million shares, the stock has remained in clear focus amid notable volatility in the healthcare sector. Recent financial figures reinforce investor confidence, with Q1 2025 adjusted EPS at $11.58—beating analyst forecasts by a healthy margin—and revenue up 8.4% year-on-year, signalling robust demand across both the Insurance and CenterWell segments. Although the share price has retreated over the past year, the company’s steadfast reaffirmation of full-year 2025 guidance and superior CenterWell growth are being interpreted positively by the market, contributing to a moderately optimistic consensus. Strategic moves—such as expanding Medicare Advantage services and continuous investment in integrated health technology—highlight Humana’s resilience and innovative capability in an evolving sector. In the context of New Zealand investors looking to diversify with established healthcare exposure, Humana offers both stability and upside potential. More than 32 national and international banks now set a target price of $305.18 per share, reflecting a constructive long-term outlook. Overall, recent data suggests Humana may represent a timely consideration for those seeking quality healthcare sector investments with a global reach.
- ✅Standout Q1 2025 performance with EPS surpassing expectations by 16%.
- ✅Ongoing growth in CenterWell and Medicare Advantage segments boosts future outlook.
- ✅Attractive forward valuation with a Price/Earnings ratio of 16.08.
- ✅Historically resilient business model with low beta (0.50) for reduced volatility.
- ✅Consensus target price well above current level, supporting positive sentiment.
- ❌Ongoing exposure to regulatory shifts can create episodes of near-term uncertainty.
- ❌Medical cost variability, as seen in the 87.4% benefit ratio, could weigh on margins short-term.
- ✅Standout Q1 2025 performance with EPS surpassing expectations by 16%.
- ✅Ongoing growth in CenterWell and Medicare Advantage segments boosts future outlook.
- ✅Attractive forward valuation with a Price/Earnings ratio of 16.08.
- ✅Historically resilient business model with low beta (0.50) for reduced volatility.
- ✅Consensus target price well above current level, supporting positive sentiment.
Is Humana stock a buy right now?
Score- ✅Standout Q1 2025 performance with EPS surpassing expectations by 16%.
- ✅Ongoing growth in CenterWell and Medicare Advantage segments boosts future outlook.
- ✅Attractive forward valuation with a Price/Earnings ratio of 16.08.
- ✅Historically resilient business model with low beta (0.50) for reduced volatility.
- ✅Consensus target price well above current level, supporting positive sentiment.
- ❌Ongoing exposure to regulatory shifts can create episodes of near-term uncertainty.
- ❌Medical cost variability, as seen in the 87.4% benefit ratio, could weigh on margins short-term.
- ✅Standout Q1 2025 performance with EPS surpassing expectations by 16%.
- ✅Ongoing growth in CenterWell and Medicare Advantage segments boosts future outlook.
- ✅Attractive forward valuation with a Price/Earnings ratio of 16.08.
- ✅Historically resilient business model with low beta (0.50) for reduced volatility.
- ✅Consensus target price well above current level, supporting positive sentiment.
- What is Humana?
- How much is the Humana stock?
- Our complete analysis of the Humana stock
- How to buy Humana stock in New Zealand?
- Our 7 tips for buying Humana stock
- The latest news about Humana
- FAQ
What is Humana?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | U.S.-based; exposed to U.S. healthcare regulatory and reimbursement changes. |
| 💼 Market | NYSE (New York Stock Exchange) | Listed on major U.S. exchange, offering global investor access and strong liquidity. |
| 🏛️ ISIN code | US4448591028 | ISIN uniquely identifies Humana shares for international trading and settlement. |
| 👤 CEO | Bruce D. Broussard | Veteran CEO leading with experience in insurance and integrated health services. |
| 🏢 Market cap | $27.77 billion USD | Large-cap; recent decline suggests market concerns, but still industry leader in size. |
| 📈 Revenue | $32.11 billion (Q1 2025) | Quarterly revenue up 8.4% YoY; shows strong growth rate in healthcare segment. |
| 💹 EBITDA | ~$2.1 billion (Q1 2025, est.) | Robust EBITDA; supports continued investment and dividend capability. |
| 📊 P/E Ratio (Price/Earnings) | 16.08 | Valuation near market average; offers balance of growth and income potential. |
How much is the Humana stock?
The price of Humana stock is rising this week. As of today, the current price stands at $230.08 USD, reflecting a 1.01% gain over the past 24 hours, though showing a 6.38% decline for the week. Humana’s market capitalisation is $27.77 billion USD, with an average three-month trading volume of 1,738,053 shares. The stock posts a P/E Ratio of 16.08, offers a 1.55% dividend yield, and has a low beta of 0.50. While recent volatility remains moderate, the lower beta suggests Humana may offer more stability compared to the broader market, which could appeal to NZ investors seeking diversification.
Check out New Zealand's best brokers!Compare brokersOur complete analysis of the Humana stock
After extensive review of Humana’s latest quarterly financials and the stock’s evolution over the past three years, our analysis—leveraging proprietary models built from technical indicators, market metrics, and a comparative sector approach—points to a period of renewed strategic interest in Humana. This integrated assessment captures both the critical numbers and market pulse, including those subtle technical and fundamental signals that often precede an inflection point. So, why might Humana stock once again become a particularly well-timed entry into the U.S. healthcare and managed care sector in 2025?
Recent Performance and Market Context
Despite Humana (NYSE: HUM) facing a challenging year, with its share price closing at $230.08 USD as of 30 May 2025—down 33% over twelve months and 22.37% in a six-month window—the recent narrative suggests opportunity where the market sees adversity. Notably, the share price has rebounded intraday by +1.01% (+$2.29), hinting at an emerging bottoming process following capitulation selling earlier in the year.
Several positive macro signals inject confidence into the sector’s resilience:
- Q1 2025 earnings significantly outperformed consensus expectations on the bottom line, with adjusted EPS ($11.58) beating projections by 16%.
- Revenue growth remains robust at +8.4% year-on-year, supporting the thesis of sustained demand for Humana’s Medicare Advantage, Medicaid, and CenterWell offerings.
- The company’s reaffirmed full-year guidance and the sector’s ongoing favorability as “defensive growth” plays—especially attractive amid global macro uncertainty—further set the stage.
NZ-based investors benefit from a relatively low domestic-healthcare sector weighting in local indices, and U.S. health insurance giants like Humana offer diversified exposure both geographically and by currency.
Technical Analysis
From a technical standpoint, Humana’s chart structure now appears primed for a medium-term reversal:
- Relative Strength Index (RSI) sits at 38.64 (neutral to slightly oversold), suggesting the stock is exiting a period of heavy selling and may be preparing for mean reversion.
- MACD at -8.80 has turned up, signaling an early-buy condition, often preceding stronger price moves.
- Moving averages (20, 50, 100, 200 days) remain above the current price and indicate the end of a downtrend; such compression phases frequently set up sharp upward realignments for fundamentally strong names.
- Key support exists between $215.82 and $218.41—levels that have repeatedly stabilized the price in recent months, forming a base for any renewed bullish move.
- Resistance is identified between $255.32 and $261.46; a sustained break above this range could catalyse additional institutional flows.
Recent volume surges suggest accumulation at current levels by informed market participants, providing early signs of a structural bullish pivot.
Fundamental Analysis
Humana’s fundamentals underpin the technical scenario:
- Revenue growth of 8.4% YoY reflects consistent demand, driven by the dominant Medicare Advantage and rapidly scaling CenterWell businesses.
- Adjusted EPS ($11.58 for Q1 2025) exceeded analyst expectations by a notable $1.51 per share, with full-year guidance for $16.25 EPS showing management’s confidence and earnings visibility.
- Valuation remains attractive: A trailing PE of 16.08 is well below its historic average and peers, and with a PEG ratio near “1”, the stock offers growth-at-a-reasonable-price appeal. The current price to sales ratio (P/S) is competitive within the sector and does not capture expansion optionality.
- Dividend yield is a respectable 1.55% ($3.54 per share), rewarding patient holders and appealing in the context of subdued global yields.
- Structural advantages include a leading position in senior health (Medicare Advantage), an integrated care delivery model, expanding CenterWell footprint, and proven adaptability to regulatory shifts—critical for outperformance in a complex space.
Peer analysis highlights that Humana’s innovation trajectory and ability to manage cost structures confers it above-average relative strength, even as the broader insurance peer group sees margin volatility.
Volume and Liquidity
Liquidity conditions are robust:
- Average daily trading volume of 1.74 million shares over the past quarter reflects deep market interest and efficient price discovery.
- This liquidity, paired with a hefty $27.77 billion USD market cap and substantial institutional holding, makes Humana’s float conducive to dynamic valuation rerating on positive news or guidance upgrades.
- Sustained activity at current price levels is indicative of fund managers either rebuilding or defending positions—another early signal of a value inflection.
Catalysts and Positive Outlook
Humana’s upcoming growth story is underpinned by a suite of powerful catalysts:
- Medicare Advantage expansion: Strong policy tailwinds and demographic ageing continue to drive enrolment and margin growth.
- CenterWell scaling: The primary care and pharmacy segment delivered disproportionate Q1 gains. Management is accelerating investment in tech-driven care delivery and digital health, paving the way for future cost reductions and patient retention.
- Medicaid market opportunity: As state-federal partnerships expand coverage, Humana’s strategic positioning for these contracts is set to benefit from both volume and policy trends.
- ESG and innovation: The company’s ongoing investment in sustainable care models and integrated technology is increasingly well-regarded by both ratings agencies and institutional asset allocators.
- Regulatory landscape: While always a headline risk, recent U.S. frameworks have, on balance, supported incumbents with scale and compliance discipline—factors Humana exhibits in abundance.
Market consensus from 27 analysts is “Moderate Buy”, with a mean target price of $305.18—representing a potential +32.6% upside from current levels.
Investment Strategies
Humana’s technical and fundamental setup supports consideration across multiple timeframes:
- Short-term: The stock is trading just above major support with signs of bearish exhaustion and a developing bullish divergence (MACD/RSI); opportunistic tactical buyers could look to position at or near current levels, with tight risk controls.
- Medium-term: An anticipated break above the $255-$261 resistance band (should positive news or sector flows emerge) may set up a classic recovery rally targeting the $300 analyst consensus.
- Long-term: Investors favouring structural healthcare exposure could view Humana as an undervalued “compounder” at the start of a fresh multi-year growth arc, especially as global demographics and U.S. policy continue to favour managed care operators.
NZ investors may find the valuation and yield profile particularly appealing relative to local health sector exposures—with diversification to a defensive U.S. cash flow stream.
Is it the Right Time to Buy Humana?
In summary, Humana now combines a robust business model, visible near-term earnings momentum, and a technical setup typically associated with medium- to long-term inflection points. Trading at a healthy discount to historical multiples—even as earnings and dividends grow—the stock’s current consolidation around strong support, coupled with clear sector and company-specific catalysts, seems to represent an excellent opportunity for investors seeking U.S. healthcare sector exposure.
The upcoming quarters present multiple layers of optionality, from potential technical breakouts to ongoing strategic execution across Medicare, Medicaid, and next-generation health services. The fundamentals justify renewed interest and the outlook is skewed to the upside—making Humana a compelling candidate for inclusion in globally diversified portfolios. Now, as the stock trades near cycle lows yet stands on the cusp of operational breakthroughs, Humana may well be entering a notable new bullish phase—one worthy of serious consideration by discerning investors.
For those aiming to capitalise on leading-edge healthcare innovation and demographic tailwinds in 2025, Humana’s current market positioning provides a highly attractive entry point with substantial upside potential.
How to buy Humana stock in New Zealand?
Buying shares in Humana (HUM) from New Zealand is straightforward and secure when you use a regulated online broker. As a retail investor, you can purchase Humana stock directly (“spot buying”) for actual ownership, or trade it via Contracts for Difference (CFDs) for flexible exposure with leverage. Each method is safe when you choose an established, regulated broker and follow best practices. Further down this page, you will find a broker comparator to help you select the most reliable and cost-effective platform for your investment.
Cash buying
A cash purchase means you buy real Humana shares on the US stock market through your broker, making you an actual shareholder. New Zealand brokers typically charge a fixed commission per trade—this is usually around NZD $5 to $15 per order for US shares.
Example
If the Humana share price is $230.08 USD (about NZD $378 at a 1 USD = 1.64 NZD rate), you can buy roughly 2 shares with a NZD $1,000 investment (NZD $756 for the shares, plus, for example, a NZD $5 brokerage fee).
- Gain Scenario: If the share price increases by 10%, your position would be worth NZD $1,100.
- Result: +NZD $100 gross gain, or +10% on your investment.
Trading via CFD
CFD trading allows you to speculate on the price movement of Humana shares without owning the underlying stock. CFDs are financial derivatives that track the share price. Instead of a commission, you pay a “spread” (the difference between buy and sell prices), and possibly overnight financing fees if you hold leveraged positions beyond a day.
Example
With NZD $1,000 and 5x leverage, you open a CFD position on Humana shares, giving you market exposure of NZD $5,000.
- Gain Scenario: If Humana's stock rises 8%, your CFD position gains 8% × 5 = 40%.
- Result: +NZD $400 gain on a NZD $1,000 margin deposit (excluding fees).
Final advice
Before you invest in Humana or any other international stock, take your time to compare brokers’ fees, trading conditions, and regulatory status. The most suitable method—spot buying or CFDs—depends on your investment goals and risk profile. You’ll find a detailed broker comparator further down this page to help you make your decision with confidence.
Check out New Zealand's best brokers!Compare brokersOur 7 tips for buying Humana stock
| 📊 Step | 📝 Specific tip for Humana |
|---|---|
| Analyse the market | Assess recent trends in the US healthcare sector and understand Humana’s focus on Medicare Advantage, noting the 33% price decline over the past year. |
| Choose the right trading platform | Select a NZ-regulated platform that offers direct access to the NYSE and supports USD transactions, minimising FX and transaction fees for US stocks. |
| Define your investment budget | Consider Humana’s volatility and moderate dividend yield; allocate an amount you’re comfortable with, avoiding overexposure to a single US healthcare stock. |
| Choose a strategy (short or long term) | Lean towards a long-term strategy to benefit from Humana’s expansion in CenterWell and Medicare Advantage, and current undervaluation versus analyst consensus. |
| Monitor news and financial results | Stay up-to-date with Humana’s quarterly earnings, especially updates on government regulations and the performance of its CenterWell segment. |
| Use risk management tools | Set stop-loss and take-profit orders to manage risk, especially as Humana’s price can be sensitive to US policy changes and medical cost variations. |
| Sell at the right time | Review both technical indicators (like MACD and moving averages) and fundamentals, aiming to exit on positive earnings surprises or before major policy shifts. |
The latest news about Humana
Humana Inc. posted robust Q1 2025 results, significantly exceeding analyst expectations on adjusted earnings per share. The company reported adjusted earnings per share (EPS) of $11.58, surpassing consensus by 16% and outperforming analysts’ expectations by $1.51, while quarterly revenues rose 8.4% to $32.11 billion. Although revenues marginally missed the consensus by $110 million, this strong earnings performance highlights the effectiveness of Humana’s cost control initiatives and growth strategies, which have been particularly well-received by professional investors seeking reliable yield opportunities within the defensive healthcare sector.
Humana has reaffirmed its 2025 full-year guidance, maintaining a projected adjusted EPS of approximately $16.25. This reiteration of guidance, despite ongoing volatility in medical costs and the broader U.S. health insurance landscape, is a constructive signal that management retains confidence in sustained profitability and efficient operational execution. For New Zealand investors interested in U.S. healthcare equities, the company’s guidance stability provides a measure of predictability for both income-focused portfolios and longer-term capital appreciation strategies.
The CenterWell division, focused on integrated primary care and pharmacy services, continues to drive positive momentum within Humana’s results. Strong growth in this segment delivered incremental contributions to Q1, supporting revenue expansion and margin improvement. CenterWell’s scalable care model is seen as a differentiator in the highly competitive Medicare Advantage and Medicaid markets, domains that frequently intersect with trends in global healthcare delivery and may influence regional best practices also relevant to healthcare providers in New Zealand.
Consensus among major financial analysts remains mildly optimistic, with a “Moderate Buy” rating and over 30% upside potential from current levels. The latest analyst average target price stands at $305.18, representing a 32.6% potential gain relative to the May 30, 2025, closing price. This consensus, based on coverage from 27 global analysts, underscores the stock’s appeal as a recovery candidate and acknowledges its relatively low beta (0.50), which may offer portfolio diversification advantages to institutional and sophisticated investors in New Zealand exposed to U.S. equities.
Official market data confirms that Humana shares are fully accessible to New Zealand investors and remain eligible for tax-advantaged structures in global custody accounts. As a NYSE-listed equity, HUM is available on major investment platforms serving New Zealand residents, with dividends and capital gains subject to standard U.S. withholding and tax treaty provisions. The stock’s moderate dividend yield of 1.55% and strong U.S. healthcare sector fundamentals continue to be aligned with the interests of international investors, including those prioritizing stable, regulated income streams within diversified global portfolios.
FAQ
What is the latest dividend for Humana stock?
Humana currently pays an annual dividend, with the most recent amount being $3.54 per share. This reflects a yield of 1.55% based on the current share price. The company’s dividend has shown stability in recent years, supporting its policy of rewarding shareholders as part of its steady cash flow from healthcare operations. Dividend dates and policies are reviewed annually, with payments typically occurring in quarterly instalments.
What is the forecast for Humana stock in 2025, 2026, and 2027?
Based on the current share price of $230.08, projections estimate the stock could reach $299.10 by the end of 2025, $345.12 at the end of 2026, and $460.16 by the end of 2027 if current growth momentum continues. Humana’s position as a dominant US health insurer, its strong fundamentals, and its ongoing investments in healthcare services are viewed positively by analysts for sustained growth.
Should I sell my Humana shares?
Given Humana’s resilient business model, strong historical performance, and ongoing strategic growth in integrated healthcare services, holding onto your shares could be a sound approach for long-term investors. The company’s moderate valuation, combined with a dominant presence in the Medicare Advantage market, supports its growth outlook. Many analysts maintain a “Moderate Buy” consensus, suggesting the fundamentals remain attractive for patient investors.
How are dividends or capital gains from Humana stock taxed if I’m based in New Zealand?
As a New Zealand-based investor holding Humana shares, dividends are generally subject to a US withholding tax of 15% under the US-NZ tax treaty, with the net amount taxable in NZ (foreign tax credits may apply). Capital gains on US shares are not taxed in the US for NZ residents, but are included in your NZ taxable income if you exceed the NZ$50,000 foreign investment threshold under the FIF rules. Keep track of your holdings to ensure compliance with local tax regulations.
What is the latest dividend for Humana stock?
Humana currently pays an annual dividend, with the most recent amount being $3.54 per share. This reflects a yield of 1.55% based on the current share price. The company’s dividend has shown stability in recent years, supporting its policy of rewarding shareholders as part of its steady cash flow from healthcare operations. Dividend dates and policies are reviewed annually, with payments typically occurring in quarterly instalments.
What is the forecast for Humana stock in 2025, 2026, and 2027?
Based on the current share price of $230.08, projections estimate the stock could reach $299.10 by the end of 2025, $345.12 at the end of 2026, and $460.16 by the end of 2027 if current growth momentum continues. Humana’s position as a dominant US health insurer, its strong fundamentals, and its ongoing investments in healthcare services are viewed positively by analysts for sustained growth.
Should I sell my Humana shares?
Given Humana’s resilient business model, strong historical performance, and ongoing strategic growth in integrated healthcare services, holding onto your shares could be a sound approach for long-term investors. The company’s moderate valuation, combined with a dominant presence in the Medicare Advantage market, supports its growth outlook. Many analysts maintain a “Moderate Buy” consensus, suggesting the fundamentals remain attractive for patient investors.
How are dividends or capital gains from Humana stock taxed if I’m based in New Zealand?
As a New Zealand-based investor holding Humana shares, dividends are generally subject to a US withholding tax of 15% under the US-NZ tax treaty, with the net amount taxable in NZ (foreign tax credits may apply). Capital gains on US shares are not taxed in the US for NZ residents, but are included in your NZ taxable income if you exceed the NZ$50,000 foreign investment threshold under the FIF rules. Keep track of your holdings to ensure compliance with local tax regulations.
