Humana stock gains on Medicare Star Ratings boost from Evercore

Humana's stock rose following Evercore's analysis of the upcoming Medicare Star Ratings. Evercore's assessment of Humana, particularly its largest plan H5216, was highly positive, receiving a 4-star rating. This led to Humana's total membership in 4-star or higher plans reaching 93%. Meanwhile, UnitedHealth Group's results were modestly positive, with a decline to 67% in 4-star or higher plans.

Despite this, UnitedHealth remains a significant player, with a market capitalization of $333 billion and $450.5 billion in revenue over the past year. The stock appears undervalued according to InvestingPro analysis, and the company has raised its dividend for 16 consecutive years. CVS Health and Elevance Health, on the other hand, saw slightly negative and weaker results, respectively.

Despite this, UnitedHealth Group has received numerous analyst updates and market discussions, with Piper Sandler and Cantor Fitzgerald maintaining an Overweight rating and expressing optimism about the upcoming Medicare 2027 Part C & D Star Ratings. Bernstein SocGen Group also reiterated an Outperform rating, highlighting UnitedHealth's potential in AI and technology services.