In the latest market close, UnitedHealth Group (UNH) reached $295.57, with a -0.37% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.67% for the day. On the other hand, the Dow registered a loss of 0.61%, and the technology-centric Nasdaq decreased by 1%.
Prior to today's trading, shares of the largest U.S. health insurer had lost 30.07% over the past month. This has lagged the Medical sector's loss of 1.06% and the S&P 500's gain of 10.65% in that time.
Analysts and investors alike will be keeping a close eye on the performance of UnitedHealth Group in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $5.47, marking a 19.56% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $112.14 billion, indicating a 13.44% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $23.38 per share and a revenue of $451.8 billion, signifying shifts of -15.47% and +12.87%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for UnitedHealth Group. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 13.91% decrease. UnitedHealth Group presently features a Zacks Rank of #5 (Strong Sell).
Looking at valuation, UnitedHealth Group is presently trading at a Forward P/E ratio of 12.69. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 12.69.
It is also worth noting that UNH currently has a PEG ratio of 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - HMOs was holding an average PEG ratio of 0.99 at yesterday's closing price.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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