UnitedHealth Group (UNH) Dips More Than Broader Markets: What You Should Know
UnitedHealth Group (UNH) closed at $276.90 in the latest trading session, marking a -0.99% move from the prior day. This change lagged the S&P 500's daily loss of 0.66%. Meanwhile, the Dow lost 1.01%, and the Nasdaq, a tech-heavy index, lost 0.55%.
Prior to today's trading, shares of the largest U.S. health insurer had gained 11.31% over the past month. This has outpaced the Medical sector's gain of 4.7% and the S&P 500's gain of 1.77% in that time.
Wall Street will be looking for positivity from UNH as it approaches its next earnings report date. In that report, analysts expect UNH to post earnings of $3.75 per share. This would mark year-over-year growth of 14.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $61.36 billion, up 5.05% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.96 per share and revenue of $242.23 billion. These totals would mark changes of +16.15% and +7.07%, respectively, from last 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, UNH is holding a Forward P/E ratio of 18.69. This represents a discount compared to its industry's average Forward P/E of 18.87.
We can also see that UNH currently has a PEG ratio of 1.48. 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 1.24 at yesterday's closing price.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 61, putting it in the top 24% 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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