We just covered the 10 Best Non-AI Stocks to Buy According to Billionaire Stanley Druckenmiller. Humana Inc. (NYSE:HUM) ranks #9 (see 5 Best Non-AI Stocks to Buy According to Billionaire Stanley Druckenmiller).
Druckenmiller's Stake: $23,842,000
Humana Inc. (NYSE:HUM) is a US health insurer focused mainly on Medicare Advantage plans for seniors. While the stock is up year to date and has also gained over the past year, it is down 28% over the past five years amid profitability pressure in the Medicare Advantage business.
The bull case for the long term is simple: the pressures are cyclical and partially fixable over time. Humana (NYSE:HUM) is targeting a return to at least a 3% Medicare Advantage margin by 2028, suggesting management expects profitability to recover as pricing, benefits, and utilization normalize. The company also expects earnings growth to resume after a 2026 "reset year," where current pressures are absorbed and restructured into new plan designs and pricing.
Membership trends still provide some support, with individual Medicare Advantage membership expected to grow by about 25% over 2026, driven by new sales and improved retention. This shows that despite margin pressure, demand for the product remains strong.
Druckenmiller's Stake: $23,842,000
Humana Inc. (NYSE:HUM) is a US health insurer focused mainly on Medicare Advantage plans for seniors. While the stock is up year to date and has also gained over the past year, it is down 28% over the past five years amid profitability pressure in the Medicare Advantage business.
The bull case for the long term is simple: the pressures are cyclical and partially fixable over time. Humana (NYSE:HUM) is targeting a return to at least a 3% Medicare Advantage margin by 2028, suggesting management expects profitability to recover as pricing, benefits, and utilization normalize. The company also expects earnings growth to resume after a 2026 "reset year," where current pressures are absorbed and restructured into new plan designs and pricing.
Membership trends still provide some support, with individual Medicare Advantage membership expected to grow by about 25% over 2026, driven by new sales and improved retention. This shows that despite margin pressure, demand for the product remains strong.
2 months ago
