Humana (HUM) Trading Sharply Higher After Earnings

Humana Inc. (NYSE: HUM) reported better than expected earnings today and the stock price soared 4.61%. The company posted EPS of $1.19 while the market expected $1.07. Revenue fell short of expectations as Humana (HUM) reported $9.56 billion vs expected $9.73 billion. Humana earned $7.47 for the year and the average analysts estimate was $7.49. The management's previous estimate was $7.25 - $7.35 per share. A forecast for the next year is between $7.60 and $7.80 per share.

The stock is trading sharply higher despite the broad market sell-off and this is not surprising, because Humana (HUM) has cheap valuation and it posted good earnings results. The chart also looks good as price jumped over a significant resistance. A double bottom pattern can also be spotted, with lowest points on July 31st ($59.92) and on November 28th ($63.93). A resistance of $77.02 was broken today as Humana is currently trading at $78.82. Humana (HUM) failed to beat a resistance point of $80 today, and the next resistance points are $81.42, from Jun 29th, and $83.90, from April 30th.

A significant support could be at $77.49, which is a mid point of a candle formed in today's trading session, and $77 which had been a resistance before HUM jumped above it today. I believe that this stock should perform well, especially if macroeconomic concerns that are coming from Europe vanish. When a stock spikes, like Humana did, I like to wait for a pull back, before I decide to open a long position.

Disclaimer: I don't have a position in HUM. The material on this website is not an investment advice. I do not provide investment advices. Before investing you should consider risks.