In the latest trading session, UnitedHealth Group (UNH) closed at $253.45, marking a +0.48% move from the previous day. This change outpaced the S&P 500's 0.09% loss on the day. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, lost 0.16%.
Coming into today, shares of the largest U.S. health insurer had lost 4.38% in the past month. In that same time, the Medical sector gained 2.75%, while the S&P 500 gained 2.35%.
UNH will be looking to display strength as it nears its nex t earnings release. In tha t report , analysts expect UNH to post earnings of $3.58 per share. This would mark year-over-year growth of 17.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $59.66 billion, up 8.11% from the year-ago period.
UNH's full-year Zacks Consensus Estimates are calling for earnings of $14.62 per share and revenue of $244.23 billion. These results would represent year-over-year changes of +13.51% and +7.95%, respectively.
Investors should also note any recent changes to analyst estimates for UNH. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 currently has a Zacks Rank of #2 (Buy).
In terms of valuation, UNH is currently trading at a Forward P/E ratio of 17.25. This represents a premium compared to its industry's average Forward P/E of 15.94.
Investors should also note that UNH has a PEG ratio of 1.29 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - HMOs stocks are, on average, holding a PEG ratio of 1.16 based on yesterday's closing prices.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% 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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