Humana Stock: Is HUM Underperforming the Healthcare Sector?

Core Insights - Humana Inc. is a healthcare plan provider based in Louisville, Kentucky, with a market cap of $37.3 billion, offering medical and specialty insurance products in the U.S. [1] - The company is classified as a large-cap stock, providing millions of medical memberships annually, which aligns with its valuation above $10 billion [2] Stock Performance - Humana's stock has decreased by 21.6% from its 52-week high of $348.24 on October 9, 2024, but has increased by 17.2% over the past three months, outperforming the Health Care Select Sector SPDR Fund's (XLV) 3.3% increase during the same period [3] - Year-to-date, Humana's stock has gained 7.6% but has dropped 20.6% over the past 52 weeks, outperforming XLV's slight increase of 0.74% in 2025, while underperforming XLV's 10.6% decline over the past year [4] Financial Performance - Following the release of better-than-expected Q2 results on July 30, Humana's stock surged by 12.4% in a single trading session, driven by membership growth in state-based contracts and stand-alone PDP business [5] - Humana's adjusted revenues grew by 10.2% year-over-year to $32.4 billion, exceeding consensus estimates by 1.9%, although adjusted EPS fell by 9.9% year-over-year to $6.27 [5][6] - The company raised its full-year adjusted EPS guidance from $16.25 to $17, which has positively impacted investor confidence [6] Peer Comparison - Compared to its peer Cigna Group, Humana's stock has lagged, with Cigna achieving 9.4% gains year-to-date and a 15.6% decline over the past year [7]