UnitedHealth Group (UNH) closed the most recent trading day at $246, moving -0.74% from the previous trading session. This change lagged the S&P 500's daily gain of 0.12%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, added 0.54%.
Prior to today's trading, shares of the largest U.S. health insurer had lost 0.12% over the past month. This has lagged the Medical sector's gain of 0.92% and the S&P 500's gain of 3.68% in that time.
Wall Street will be looking for positivity from UNH as it approaches its nex t earnings report date. This is expected to be July 18, 2019. The company is expected to report EPS of $3.47, up 10.51% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $60.67 billion, up 8.17% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.71 per share and revenue of $244.06 billion, which would represent changes of +14.21% and +7.87%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for UNH. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. UNH is currently a Zacks Rank #2 (Buy).
Digging into valuation, UNH currently has a Forward P/E ratio of 16.85. Its industry sports an average Forward P/E of 14.94, so we one might conclude that UNH is trading at a premium comparatively.
Also, we should mention that UNH has a PEG ratio of 1.33. 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. The Medical - HMOs industry currently had an average PEG ratio of 1.06 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 8, which puts it in the top 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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