Core Viewpoint - Humana's stock experienced a significant decline of 21% following the CMS's announcement of a minimal rate increase for 2027, highlighting the company's vulnerability as a "pure play" on Medicare Advantage, which constitutes approximately 85% of its operations [2] Financial Performance - Humana's Q3 2025 revenue was reported at $32.65 billion, reflecting an 11% year-over-year increase, while adjusted EPS for the same period was $3.24, down 22% year-over-year [2] - The medical benefit ratio for Q3 2025 stood at 91.1%, indicating limited profitability potential, as ratios above 90% are generally unfavorable [3] - The company anticipates a full-year 2025 adjusted EPS of around $17.00, with a projected benefit ratio between 90.1% and 90.5% [3] Membership Trends - Humana is facing a decline in Medicare Advantage membership, with an expected loss of approximately 425,000 members in 2025 due to withdrawal from unprofitable markets [3] Star Ratings Impact - Humana's Star Ratings, which influence bonus payments from CMS, have significantly dropped for the bonus year 2027, leading to reduced reimbursements and a competitive disadvantage compared to peers like UnitedHealth [5] Valuation Insights - Following the recent stock decline, Humana is trading at around $209 per share, approximately 13 times the estimated 2026 EPS, which appears slightly undervalued compared to historical multiples of 16-18 times [6] - The company is focusing on operational efficiencies and aims to achieve over $100 million in savings through AI and outsourcing [6] Future Projections - Analysts project a loss of $4.00 per share for Q4 2025, contrasting with a loss of $2.16 in Q4 2024, reflecting the challenges in addressing the Star Ratings issue [7] - The company is implementing a "reset" strategy for 2025-2026, but its effectiveness remains unproven amid regulatory challenges [8] Investment Outlook - The investment view suggests that Humana presents a high-risk profile until Q4 results and final 2027 rates are disclosed, with a 35% analyst upside projection considered optimistic given existing structural hurdles [9]

Core Viewpoint - The Trump administration is actively working to accelerate economic growth and support the market, with no changes expected in 2026 [1] Group 1 - James Foord is an economist with a decade of experience analyzing global markets and leads The Pragmatic Investor, which focuses on building diversified portfolios to preserve and increase wealth [2] - The Pragmatic Investor covers various sectors including global macro, international equities, commodities, tech, and cryptocurrencies, providing resources for investors of all levels [2] - Features of The Pragmatic Investor include a portfolio, weekly market updates, actionable trades, technical analysis, and a chat room for investor engagement [2]

Core Insights - The company focuses on building a balanced investment portfolio that includes both technology stocks and defensive options, emphasizing the importance of intrinsic value over market conditions [1] - The investment strategy is informed by macroeconomic trends, stock valuation, and the interplay between politics and markets, showcasing a comprehensive approach to investment analysis [1] - The company has experience in managing third-party portfolios and has faced market crises, which has shaped its understanding of investment challenges [1] Investment Strategy - The company prioritizes established technology firms and those in consumer staples and discretionary goods, indicating a preference for sectors with strong growth potential [1] - The investment philosophy revolves around finding opportunities based on the intrinsic value of companies, particularly those with strong catalysts for growth [1] Experience and Background - The company has a Master's degree in Economics and has worked as a consultant for both public and private organizations, highlighting a strong foundation in financial and economic analysis [1] - The experience includes analyzing public tenders, which has provided insights into the complexities of market dynamics and investment strategies [1] Social Responsibility - The company actively promotes financial inclusion programs for women, reflecting a commitment to expanding opportunities within the finance sector [1] - The focus on integrating women into finance is seen as a significant challenge, indicating a dedication to social responsibility alongside investment goals [1]

Core Insights - The company focuses on building a balanced investment portfolio that includes both technology stocks and defensive options, emphasizing the importance of intrinsic value over market conditions [1] Group 1: Investment Strategy - The investment strategy prioritizes established technology companies and those in consumer staples and discretionary goods, aiming to capture growth while maintaining stability [1] - The company has been actively managing third-party portfolios for seven years, with a strong emphasis on macroeconomic trends and stock valuation [1] Group 2: Experience and Background - The company has a Master's degree in Economics and has worked as a consultant for both public and private organizations, gaining experience in financial and economic analysis [1] - The challenges faced in public tenders have provided insights into market pressures, akin to the stress experienced during market downturns [1] Group 3: Advocacy and Inclusion - The company promotes financial inclusion programs for women, highlighting the ongoing need for improvement in this area within the finance sector [1] - The company maintains a blog to share investment perspectives and advocate for expanding opportunities for women in finance [1]

Core Insights - James Foord is an economist with a decade of experience analyzing global markets, leading the investing group The Pragmatic Investor focused on building diversified portfolios to preserve and increase wealth [1] Group 1: Company Overview - The Pragmatic Investor covers various sectors including global macro, international equities, commodities, technology, and cryptocurrencies [1] - The platform is designed to assist investors of all levels in their investment journey [1] Group 2: Features and Offerings - The Pragmatic Investor offers a portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room for discussions [1]

Core Insights - Novo Nordisk (NVO) reported a mixed performance in Q3, with its stock price remaining near all-time lows, indicating market volatility [1] - Despite short-term fluctuations, the long-term outlook for Novo Nordisk remains strong, particularly due to the growth in obesity drugs and a promising pipeline of upcoming products [1] Financial Performance - The Q3 results were characterized by mixed outcomes, suggesting variability in performance metrics [1] - The stock's current valuation is at historically low levels, which may present a potential investment opportunity for long-term investors [1] Product Pipeline - Novo Nordisk is expected to benefit from a robust pipeline of new products, which could drive future growth [1] - The company's focus on obesity drugs is a key strength, aligning with increasing global health trends and market demand [1]