Is Humana Stock Outperforming the Dow?

Is Humana Stock Outperforming the Dow?

Wed, September 9, 2026 at 5:55 PM GMT+3 3 min read

• HUM +0.18%
• ^DJI -0.60%

Humana Inc. (HUM) is a Louisville, Kentucky-based health and well-being company that primarily serves seniors through Medicare Advantage and prescription drug plans. It operates two segments: Insurance, which administers government-contracted medical benefits for millions of members, and CenterWell, a senior-focused care platform offering primary care, pharmacy, and home health services. With a market capitalization of $48.40 billion, the company is considered a "big cap" stock.

Humana's stock reached a 52-week high of $428.88 on July 16, but is now down 6% from this high. It had reached a 52-week low of $163.11 on Mar. 20, but is now up 147.1% from this low. Over the past three months, the company's stock has gained 13.2%, while the broader Dow Jones Industrial Average ($DOWI) has been up 3.9% over the same period, which shows Humana's clear outperformance.

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As investors responded to stronger Medicare Advantage payment rates and solid membership growth, Humana's stock has gained 29.9% over the past 52 weeks. Meanwhile, the Dow Jones Industrial Average has gained 16%. This year, Humana's stock has surged robustly, up 57.4% year-to-date (YTD) and outperforming the Dow, which is up 9.8%.

Underscoring strong momentum, Humana's stock has been trading higher than its 200-day moving average since May and has recently risen above its 50-day moving average.

Humana's stock is partly driven by near-term headwinds, such as its 4-star-or-higher Medicare Advantage plans falling sharply in 2025. The company filed a lawsuit seeking to set aside and vacate the 2025 Star Ratings for its Medicare Advantage plans, but the proposal was rejected. Humana has appealed the judge's decision again, but if the appeal is rejected, the company's revenue, earnings, and cash flow could come under pressure.

Humana reported better-than-expected Q2 results. The company also reported membership growth across its Medicare businesses in 2026. Despite strong results, the company reaffirmed its full-year 2026 outlook, keeping adjusted EPS guidance at at least $9.00 while lowering GAAP EPS guidance to at least $6.52 from at least $8.36.

The company also reiterated its expectation that individual Medicare Advantage membership will grow about 25% in 2026, driven by stronger sales, better retention from its customer-led benefit design, and improved customer service. Humana plans to exit some of its least profitable Medicare Advantage markets next year, which is expected to impact an estimated 600,000 members.

While the stock is outperforming the Dow Jones Industrial Average, some industry stocks are outperforming Humana. One rival, Centene Corporation (CNC), has gained 123.9% over the past 52 weeks and 56.9% YTD, outperforming Humana.

Wall Street analysts are bullish on Humana's stock. The 26 analysts covering it have a consensus rating of "Moderate Buy." The mean price target of $421.35 shows 4.5% upside from current levels. Moreover, the Street-high price target of $513 indicates a 27.3% upside.

On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com