UnitedHealth Group (UNH) Stock Declines While Market Improves: Some Information for Investors

In the latest market close, UnitedHealth Group (UNH) reached $503.68, with a -0.88% movement compared to the previous day. This change lagged the S&P 500's 0.03% gain on the day. Meanwhile, the Dow experienced a drop of 0.56%, and the technology-dominated Nasdaq saw an increase of 0.59%.

The the stock of largest U.S. health insurer has risen by 3.91% in the past month, leading the Medical sector's gain of 3.67% and undershooting the S&P 500's gain of 4.19%.

Market participants will be closely following the financial results of UnitedHealth Group in its upcoming release. The company's earnings per share (EPS) are projected to be $6.76, reflecting a 10.1% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $98.88 billion, up 6.44% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $27.60 per share and revenue of $398.1 billion, indicating changes of +9.87% and +7.13%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for UnitedHealth Group. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Currently, UnitedHealth Group is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, UnitedHealth Group is presently being traded at a Forward P/E ratio of 18.41. Its industry sports an average Forward P/E of 15.7, so one might conclude that UnitedHealth Group is trading at a premium comparatively.

Also, we should mention that UNH has a PEG ratio of 1.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. UNH's industry had an average PEG ratio of 1.25 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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