The most recent trading session ended with UnitedHealth Group (UNH) standing at $310.56, reflecting a +2.23% shift from the previous trading day's closing. The stock exceeded the S&P 500, which registered a loss of 0.27% for the day.
The largest U.S. health insurer's stock has dropped by 2.44% in the past month, falling short of the Medical sector's gain of 4.77% and the S&P 500's gain of 6.9%.
Market participants will be closely following the financial results of UnitedHealth Group in its upcoming release. The company plans to announce its earnings on July 29, 2025. The company is predicted to post an EPS of $5.24, indicating a 22.94% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $111.98 billion, up 13.28% from the year-ago period.
UNH's full-year Zacks Consensus Estimates are calling for earnings of $22.48 per share and revenue of $450.1 billion. These results would represent year-over-year changes of -18.73% and +12.45%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for UnitedHealth Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, the Zacks Consensus EPS estimate has shifted 15.1% downward. At present, UnitedHealth Group boasts a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, UnitedHealth Group is currently exchanging hands at a Forward P/E ratio of 13.51. This signifies no noticeable deviation in comparison to the average Forward P/E of 13.51 for its industry.
Investors should also note that UNH has a PEG ratio of 1.23 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - HMOs was holding an average PEG ratio of 0.96 at yesterday's closing price.
The Medical - HMOs industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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