In the latest trading session, UnitedHealth Group (UNH) closed at $240.41, marking a +1.3% move from the previous day. This change lagged the S&P 500's 2.28% gain on the day. At the same time, the Dow added 2.24%, and the tech-heavy Nasdaq gained 1.72%.
Heading into today, shares of the largest U.S. health insurer had lost 18% over the past month, lagging the Medical sector's loss of 8.8% and the S&P 500's loss of 16.08% in that time.
Wall Street will be looking for positivity from UNH as it approaches its next earnings report date. This is expected to be April 15, 2020. The company is expected to report EPS of $3.60, down 3.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $64.67 billion, up 7.23% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.56 per share and revenue of $263.42 billion, which would represent changes of +9.6% and +8.78%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for UNH. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 0.47% higher within the past month. UNH is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, UNH currently has a Forward P/E ratio of 14.33. For comparison, its industry has an average Forward P/E of 11.22, which means UNH is trading at a premium to the group.
Also, we should mention that UNH has a PEG ratio of 1.12. 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. UNH's industry had an average PEG ratio of 0.73 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 76, putting it in the top 30% 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.
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 Report
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