• Humana (NYSE:HUM) has been selected as a new awardee in Illinois' HealthChoice Medicaid managed care program.
• The contract introduces Humana to the Illinois Medicaid managed care market, extending its business beyond its Medicare Advantage focus.
• This development follows recent attention on Humana's Orlando pharmacy expansion but centers on a different part of its health plan operations.

For investors tracking Humana, the new Illinois Medicaid managed care contract arrives with the stock at $363.18. NYSE:HUM has been strong recently, with the share price up 13.2% over the past week, 32.1% over the past month, and 37.3% year to date. Over the past year the stock is up 59.0%, though returns over 3 and 5 years show declines of 26.6% and 10.2%, respectively.

This move into Illinois Medicaid adds a fresh angle to the Humana story that had recently centered on the Orlando pharmacy build out. Readers may want to watch how execution in this new state program interacts with existing Medicare Advantage operations and how management talks about balancing growth and margins across these lines of business.

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Quick Assessment

• ❌ Price vs Analyst Target: At $363.18, the stock trades about 22.5% above the $296.63 consensus target.
• ✅ Simply Wall St Valuation: Internal estimates suggest the stock trades about 63.2% below fair value.
• ✅ Recent Momentum: The 30 day return of 32.1% signals strong recent buying interest.

There's only one way to know the right time to buy, sell or hold Humana. Head to Simply Wall St's company report for the latest analysis of Humana's Fair Value.

Key Considerations

• 📊 The Illinois Medicaid contract expands revenue sources beyond Medicare Advantage, which can change how you think about Humana's growth mix.
• 📊 Watch contract ramp up metrics such as membership growth, medical loss ratios, and any commentary on Illinois margins versus the group average.
• ⚠️ Profit margins are currently 0.8% compared with 1.4% a year earlier, so execution risk on a new Medicaid contract is important for overall profitability.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Humana analysis. Alternatively, you can check out the community page for Humana to see how other investors believe this latest news will impact the company's narrative.

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.