Humana Inc (NYSE:HUM)., the healthcare giant, has been delivering superior returns to its investors, outperforming passive index fund investments over the past five years. The company's consistent performance and strong fundamentals have been reflected in its share price, which has seen a significant increase of 62% during this period.
Despite a recent dip of 1.2%, Humana's shares continue to exceed the market average. This trend highlights the occasional investor irrationality and over-reactive dynamics of the market. However, it is worth noting that Humana's earnings per share (EPS) have been growing annually at a rate of 23%, a pace that outstrips its share price movement. This suggests that the market may be showing disinterest despite the strong fundamentals exhibited by the company.
A comprehensive measure of Humana's performance is its total shareholder return (TSR), which includes dividends. Over the past five years, Humana's TSR has reached an impressive 68%, largely attributed to its consistent dividend payments. This return further solidifies Humana's standing as a robust entity in the investment landscape, demonstrating its ability to consistently deliver value to its shareholders.
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