Morningstar Rating

Stock Research and Analysis

by Vishnu Lekraj

Bulls Say

Management's ability to obtain such an advantageous deal from Aetna is impressive and has created significant value for the firm's shareholders.
Humana's experience, expertise, and past success in the MA market is a major positive, since MCOs will need these skills to navigate the more difficult operating environment.
An aging U.S. population is a positive secular trend for Humana that is expected to last for decades. Read more 

Bears Say

The overhaul of the U.S. health-care market has built unprecedented uncertainty into the operating environment for Humana.
Increased transparency and competition will pressure pricing and profits for MCOs.
MA rates will be on a steep downward trend, pressuring one the largest sources of revenue for Humana. Read more 

Management

We find management's ability to improve Humana's prospects while obtaining a significant equity premium for its shareholders through a sale to Aetna highly favorable. From our perspective, the firm's management team has done a heroic job of building   Read more 

Profile

Humana is one of the largest and best-known providers of Medicare Advantage plans in the United States. The firm specializes in providing government-sponsored plans, with   Read more 

2 High-Quality Health-Care Bargains 
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