UnitedHealth Stock on a Tear Ahead of Earnings

Blue-chip insurance name UnitedHealth Group Inc (NYSE:UNH) is scheduled to report second-quarter earnings before the open on Thursday, July 16. According to Zacks Research, analysts expect earnings of $4.84 per share on $110.05 billion in revenue, representing year-over-year growth of 18.6% and a 1.4% decline, respectively.

Options traders are pricing in a 9.4% post-earnings move, nearly in line with the stock's average post-earnings swing of 9.7% over the last eight quarters. UNH has finished four of its last eight post-earnings sessions higher, including a 7% gain following its April report, though it also suffered a sharp 19.6% post-earnings drop in January.

On the charts, UNH has been chopping higher since late March, recently hitting a 52-week high of $434.30 on July 9. Last seen trading at $424.65, the equity is up 28.6% since the start of the year. 

Despite the recent recovery, options sentiment remains cautious. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), UnitedHealth's 10-day put/call volume ratio of 0.70 ranks higher than 97% of readings from the past year, indicating options traders are unusually put-heavy ahead of the report.

Analyst sentiment remains largely optimistic. Of the 26 brokerages covering UnitedHealth, 22 carry a "buy" or "strong buy" rating, while just three recommend "hold" and one says "strong sell."