Humana Inc. (NYSE:HUM)

The share price of the company exhibited overall growth from 2006 to 2024, starting at $50.86 and peaking around 2023 at $505.69 before declining to $363.98 in 2024. The trend shows notable volatility, with a significant drop between 2008 and 2009, where the price fell from $68.87 to $40.54, likely reflecting broader market conditions or company-specific challenges. Following this dip, the price generally recovered and increased steadily, reaching new highs particularly after 2014. The decline in the most recent year suggests potential market corrections or reassessments of the company’s valuation.

Earnings per share (EPS) showed an expanding trajectory over the period analyzed, rising from $1.89 in 2006 to a peak of $26.13 in 2021 before experiencing a moderate decline to $20.63 in 2024. The EPS data indicates general strengthening in profitability, although there were fluctuations including a dip around 2017 and a high peak in 2018. These fluctuations may point to variable earnings influenced by operational changes, investments, or external factors affecting net income.

The price-to-earnings (P/E) ratio demonstrated considerable volatility throughout the years. Starting at 26.95 in 2006, it decreased to a low of 7.43 in 2010, suggesting a period when the stock was potentially undervalued relative to earnings or when earnings were growing faster than the share price. After 2010, the P/E ratio oscillated significantly, with peaks such as 49.76 in 2017, indicating times of elevated market expectations or premium valuation of the stock relative to earnings. The P/E ratio’s sharp rises and falls contrast with the steadier trends in share price and EPS, highlighting varying market sentiment and possibly changing risk perceptions or growth prospects.

Overall, the data illustrates a company with improving earnings and a generally rising share price over nearly two decades. However, the fluctuations in the P/E ratio and episodic drops in share price imply periods of market uncertainty or revaluation. The slight EPS and share price declines in the latest year may warrant monitoring to assess whether they represent a short-term correction or a shift in company performance or market conditions.

Share Price Trend

Long-term growth with volatility; significant dip in 2008-2009; peak in 2023; recent decline in 2024.

Earnings Per Share (EPS)

General upward trend with fluctuations; peak earnings in 2021; moderate decline thereafter.

Price-to-Earnings (P/E) Ratio

Volatile throughout period; low point in 2010 suggesting undervaluation; high peaks indicating elevated market expectations; recent moderate values.

Summary Insight

Strong earnings growth and increasing share prices tempered by market volatility and changing investor sentiment, with recent indications of potential adjustment phases.