Humana is the third-largest health insurance company in the US. Its main focus is the administration of Medicare Advantage plans. It also does dental and vision plans and works with a range of businesses to facilitate insurance plans. It is widely believed that there is plenty of growth runway for Medicare plans, and Humana’s leadership position in that niche gives it an advantage. Humana also has a presence in the healthcare-at-home segment, which is another promising niche. The long-term growth prospects of Humana are bright.
The long-term monthly chart for Humana shows a decade-long uptrend, with the price consistently making higher highs and higher lows on a long-term basis. The price has broken the bottom of the long-term trend a few times around 2019 and 2020. But for the most part, it has largely respected the bottom trend line. In September 2021, the price has once again appeared to have found support at the bottom of the long-term trend after falling more than 18% from a peak of $474. A reversal is likely, and the target is $474. A tight stop loss can be placed below the bottom trend line, at $390, offering an attractive risk-reward ratio.

Position entered into our long-term tracking portfolio today. The entry point is at $412.93, and stop-loss $360.91, which is 13% below the entry point. The short-term to medium-term take profit at the top of the trend is set at $471.75, giving a profit of 14%.