Humana (HUM) earned more than expected for the first fiscal quarter of 2024, and yet its  forecast moving forward had to be adjusted to lower levels.

This caused the stock price to drop 3.66% on Wednesday before the close of trading. Humana stock will likely continue to drop today when trading opens.

In a very busy week for the stock market with dozens of high profile earnings reports hitting the presses, Humana’s less than stellar performance did not go unnoticed.

The 2024 FY EPS guidance for Humana was adjusted down from $14.87 to $1.93 as a result of the latest earnings report. Even though the company exceeded expectations in the area of sales, they needed more growth and more revenue to justify their high forecast.

Humana does expect annual growth for enrollment to be about 2.8% higher than last year, with about 150,000 new members. The health insurance company is also expanding its Medicaid rollout as it has won contracts to enter markets in Virginia, Texas, and Florida. The health insurance company previously was not able to get approval to enter these state markets, so the new contracts could help it moving forward, but Humana does not expect to see widespread adoption in these areas right away.

Is This the Right Time to Invest in Humana?

As Humana does expect to expand in the coming year, and they have already shown positive signs of growth, there is potential for this stock to earn big for its investors. Humana has a track record in 2024 of decreasing stock price, dropping from $470 per share to the current price of $315 per share. The drop may continue for the next few days at least as the repercussions of this earnings report hit.

However, there is the chance that Humana will turn things around by the next quarter or two thanks to its expanded potential customer base. Because the stock is priced the lowest it has been all year, it could turn around and start to grow from here, and investors may be wise to buy up the reasonably priced stock. It is not likely to stay much lower for longer.