A Look at Humana’s Valuation Following Enhanced Medicare Advantage Plans for Veterans and New Partnership Expansion

The expanded partnership between Humana (HUM) and USAA Life for 2026 brings enhanced Medicare Advantage plans to veterans, now featuring $0 copays for mental health care. This fresh set of benefits is drawing investor attention.

See our latest analysis for Humana.

Humana has attracted renewed attention not just for its veteran-focused plan enhancements, but also on the back of a 10% share price return over the past 90 days, signaling building momentum this quarter. While the one-year total shareholder return sits at just over 11%, longer-term results remain in negative territory. This underscores how recent news, including continued dividends and fresh strategic partnerships, could be boosting confidence after a tougher few years.

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With a strong short-term stock recovery and new initiatives now in the spotlight, investors must ask themselves whether Humana remains undervalued after recent gains or if the market is already factoring in future growth.

Most Popular Narrative: 5.2% Undervalued

At $295.38, the narrative fair value edges above Humana's last close of $279.92, suggesting modest upside according to the most followed forecast. This snapshot comes from analysts balancing growth catalysts and regulatory frictions in their outlook.

Humana is focusing on operational efficiency by increasing the use of AI in its contact centers to enhance customer interactions and reduce costs, which may impact net margins. The company is making substantial efforts to improve clinical excellence, including medication adherence campaigns and member engagement through in-home visits combined with virtual health. These initiatives are expected to enhance medical margins and member experience.

Read the complete narrative.

Want the whole story behind the modest upside? The big number here hinges on razor-thin margins, scaled-up technology, and a comprehensive focus on member quality and growth. Interested in seeing which assumptions really move the needle, especially for future profits and valuation multiples? Click through to uncover what drives this calculation.

Result: Fair Value of $295.38 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, regulatory headwinds in Medicare Advantage ratings or delays in primary care growth could still challenge Humana's current outlook and fair value case.

Find out about the key risks to this Humana narrative.

Build Your Own Humana Narrative

If you want to test your own perspective or dig deeper into the numbers, you can craft your own take in just a few minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Humana.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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