UnitedHealth Group (UNH) closed the most recent trading day at $303.96, moving +1.17% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.24%. On the other hand, the Dow registered a gain of 0.32%, and the technology-centric Nasdaq increased by 0.21%.
Coming into today, shares of the largest U.S. health insurer had gained 15.08% in the past month. In that same time, the Medical sector gained 0.61%, while the S&P 500 gained 1.28%.
Analysts and investors alike will be keeping a close eye on the performance of UnitedHealth Group in its upcoming earnings disclosure. On that day, UnitedHealth Group is projected to report earnings of $2.87 per share, which would represent a year-over-year decline of 59.86%. Simultaneously, our latest consensus estimate expects the revenue to be $113.54 billion, showing a 12.61% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $16.21 per share and revenue of $448.87 billion. These totals would mark changes of -41.4% and +12.14%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for UnitedHealth Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 23.37% decrease. Right now, UnitedHealth Group possesses a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, UnitedHealth Group is holding a Forward P/E ratio of 18.54. This expresses a premium compared to the average Forward P/E of 17.47 of its industry.
One should further note that UNH currently holds a PEG ratio of 1.94. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Medical - HMOs industry was having an average PEG ratio of 1.16.
The Medical - HMOs industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 233, placing it within the bottom 6% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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UnitedHealth Group Incorporated (UNH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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