5 Stocks to Buy as the Senate Passes Inflation Reduction Act

4. Humana Inc. (NYSE:HUM)

Number of Hedge Fund Holders: 66 

Humana Inc. (NYSE:HUM) operates as a health and well-being firm. The Inflation Reduction Act has maintained tax credits for health firms and extended subsidies for health insurers under the Obamacare law. These subsidies, which were increased during the COVID-19 pandemic, keep the benefit hikes from expiring at the end of this year. People who purchase health insurance through Obamacare will enjoy nearly $64 billion of the total spending on healthcare that is included in the Act. Humana, one of the largest health insurers in the US, will benefit from this.

On July 28, Deutsche Bank analyst George Hill maintained a Buy rating on Humana Inc. (NYSE:HUM) stock and raised the price target to $514 from $450, appreciating the second quarter earnings beat of the firm. 

At the end of the first quarter of 2022, 66 hedge funds in the database of Insider Monkey held stakes worth $3.1 billion in Humana Inc. (NYSE:HUM), the same as in the preceding quarter worth $3.8 billion. 

In its Q1 2022 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Humana Inc. (NYSE:HUM) was one of them. Here is what the fund said:

“During the quarter, we also sold our position in Humana Inc. (NYSE:HUM) in favor of names that, in our opinion, offer more potential upside. Geographically, we ended the quarter with 53% of the portfolio in the U.S., 38% in the U.K. and Europe, and 9% in Asia.”