In the latest trading session, UnitedHealth Group (UNH) closed at $486.04, marking a +1.21% move from the previous day. This move outpaced the S&P 500's daily loss of 0.76%. Meanwhile, the Dow experienced a drop of 1.14%, and the technology-dominated Nasdaq saw a decrease of 0.18%.
The the stock of largest U.S. health insurer has fallen by 9.96% in the past month, lagging the Medical sector's loss of 0.37% and the S&P 500's loss of 7.29%.
Investors will be eagerly watching for the performance of UnitedHealth Group in its upcoming earnings disclosure. The company is forecasted to report an EPS of $7.24, showcasing a 4.78% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $111.01 billion, up 11.24% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $29.54 per share and revenue of $451.2 billion, which would represent changes of +6.8% and +12.72%, respectively, from the prior year.
Any recent changes to analyst estimates for UnitedHealth Group should also be noted by investors. 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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, UnitedHealth Group possesses a Zacks Rank of #3 (Hold).
In terms of valuation, UnitedHealth Group is currently trading at a Forward P/E ratio of 16.26. This valuation marks a premium compared to its industry's average Forward P/E of 15.24.
It's also important to note that UNH currently trades at a PEG ratio of 1.31. 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. UNH's industry had an average PEG ratio of 1.15 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 28% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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