Let’s dig into the relative performance of Humana (NYSE: HUM) and its peers as we unravel the now-completed Q4 health insurance providers earnings season.

Upfront premiums collected by health insurers lead to reliable revenue, but profitability ultimately depends on accurate risk assessments and the ability to control medical costs. Health insurers are also highly sensitive to regulatory changes and economic conditions such as unemployment. Going forward, the industry faces tailwinds from an aging population, increasing demand for personalized healthcare services, and advancements in data analytics to improve cost management. However, continued regulatory scrutiny on pricing practices, the potential for government-led reforms such as expanded public healthcare options, and inflation in medical costs could add volatility to margins. One big debate among investors is the long-term impact of AI and whether it will help underwriting, fraud detection, and claims processing or whether it may wade into ethical grey areas like reinforcing biases and widening disparities in medical care.

The 11 health insurance providers stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 7.6% on average since the latest earnings results.

Humana (NYSE: HUM)

With over 80% of its revenue derived from federal government contracts, Humana (NYSE: HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.

Humana reported revenues of $29.2 billion, up 13.5% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company with full-year revenue guidance exceeding analysts’ expectations.

The stock is up 6.9% since reporting and currently trades at $285.15.

Is now the time to buy Humana? Access our full analysis of the earnings results here, it’s free.

Best Q4: Alignment Healthcare (NASDAQ: ALHC)

Founded in 2013 with a mission to transform healthcare for seniors, Alignment Healthcare (NASDAQ: ALHC) provides Medicare Advantage health plans for seniors with features like concierge services, transportation benefits, and technology-driven care coordination.

Alignment Healthcare reported revenues of $701.2 million, up 50.7% year on year, outperforming analysts’ expectations by 3.6%. The business had an exceptional quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.

Alignment Healthcare delivered the fastest revenue growth and highest full-year guidance raise among its peers. The company added 6,800 customers to reach a total of 189,100. The market seems happy with the results as the stock is up 37.7% since reporting. It currently trades at $18.53.

Is now the time to buy Alignment Healthcare? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Molina Healthcare (NYSE: MOH)

Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE: MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.

Molina Healthcare reported revenues of $10.5 billion, up 16% year on year, exceeding analysts’ expectations by 1.9%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.

The stock is up 5.4% since the results and currently trades at $334.50.

Read our full analysis of Molina Healthcare’s results here.

Progyny (NASDAQ: PGNY)

Pioneering a data-driven approach to family building that has achieved an industry-leading patient satisfaction score of +80, Progyny (NASDAQ: PGNY) provides comprehensive fertility and family building benefits solutions to employers, helping employees access quality fertility treatments and support services.

Progyny reported revenues of $298.4 million, up 10.6% year on year. This number topped analysts’ expectations by 7.6%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ sales volume estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.

Progyny delivered the biggest analyst estimates beat among its peers. The stock is down 3.5% since reporting and currently trades at $22.05.

Read our full, actionable report on Progyny here, it’s free.

UnitedHealth (NYSE: UNH)

With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.

UnitedHealth reported revenues of $100.8 billion, up 6.8% year on year. This print came in 0.9% below analysts' expectations. Overall, it was a slower quarter for the company.

The company added 5,000 customers to reach a total of 53.73 million. The stock is up 5.7% since reporting and currently trades at $574.06.

Read our full, actionable report on UnitedHealth here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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