UnitedHealth Group (UNH) closed the latest trading day at $506.10, indicating a -0.05% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 1.1%. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq added 1.35%.
Coming into today, shares of the largest U.S. health insurer had lost 16.42% in the past month. In that same time, the Medical sector lost 3.78%, while the S&P 500 gained 0.22%.
The upcoming earnings release of UnitedHealth Group will be of great interest to investors. The company is forecasted to report an EPS of $6.74, showcasing a 9.42% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $101.88 billion, up 7.89% from the year-ago period.
UNH's full-year Zacks Consensus Estimates are calling for earnings of $27.61 per share and revenue of $401.88 billion. These results would represent year-over-year changes of +9.91% and +8.14%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for UnitedHealth Group. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. UnitedHealth Group presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, UnitedHealth Group is currently exchanging hands at a Forward P/E ratio of 18.34. This expresses a premium compared to the average Forward P/E of 12.57 of its industry.
It's also important to note that UNH currently trades at a PEG ratio of 1.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Medical - HMOs industry held an average PEG ratio of 0.93.
The Medical - HMOs industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 185, finds itself in the bottom 27% echelons 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.
To follow UNH in the coming trading sessions, be sure to utilize Zacks.com.
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