Humana Inc ( HUM ) shares are trading lower by 3.0% to $271.13 during Thursday’s session following UnitedHealth Group's earnings report, reflecting concerns about broader industry dynamics and potential impacts on similarly structured healthcare companies.

What To Know: Humana, like UnitedHealth, operates in the managed care and health insurance sectors, with a significant portion of its business tied to Medicare Advantage plans.

Investors interpreted UnitedHealth's higher medical care ratio—indicating increased costs—as a potential warning sign for Humana, given shared exposure to rising healthcare expenses, Medicare reimbursement challenges, and Medicaid redetermination impacts.

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Humana's business model, which relies heavily on serving seniors and offering value-based care, parallels UnitedHealth's Optum and Medicare Advantage segments.

Concerns about rising medical costs or changes in member mix could easily extend to Humana, especially as both companies compete in an environment where margins are sensitive to regulatory and operational shifts.

UnitedHealth's revenue miss, despite growth, likely heightened fears of similar headwinds for Humana, prompting investors to reassess risks across the sector.

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Is HUM A Good Stock To Buy?

Wall Street analysts view Humana on the whole as Neutral, given the history of coverage over the past three months. Stephen Baxter from Wells Fargo in Humana is the most bearish, expecting a 25.06% fall in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past 3 months, Humana rose 0.08%, which indicates that opinion improved on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 14.78% over the past year.

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HUM has a 52-week high of $455.53 and a 52-week low of $213.31.