Is Humana’s Star Rating Surge Worth the Premium?

Humana Inc. (NYSE: HUM) surged 11.3% to $430.84 on October 9, 2026, setting a new 52-week high after CMS released 2027 Medicare Advantage Star ratings that placed 95% of Humana’s members in plans rated four stars or higher. The catalyst triggered upgrades from Baird, Barclays, and Cantor Fitzgerald, with price targets ranging from $460 to $596. The stock now trades at a trailing P/E of 36.78 — 80% above its 10-year median — while analysts project 2027 EPS of $15.73, implying a forward multiple of roughly 27x at current prices.