Humana (HUM) is a Top-Ranked Momentum Stock: Should You Buy?

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [4] - Momentum Score capitalizes on existing price trends and earnings outlook [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] - Stocks with lower ranks, even if they have good Style Scores, may still face price declines due to negative earnings forecasts [10] Company Spotlight: Humana Inc. - Humana Inc. is a major health care plan provider in the U.S., offering various health insurance products and supplementary benefits [11] - Currently rated 3 (Hold) by Zacks, Humana has a VGM Score of B and a Momentum Style Score of B, with shares increasing by 15.5% in the last four weeks [12] - Analysts have raised earnings estimates for Humana, with the Zacks Consensus Estimate for fiscal 2025 increasing by $0.62 to $16.99 per share, alongside an average earnings surprise of +9.6% [12] - Given its solid Zacks Rank and favorable Style Scores, Humana is recommended for investors' consideration [13]