The most recent trading session ended with UnitedHealth Group (UNH) standing at $506.34, reflecting a +1.24% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.73% for the day. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq added 0.98%.
Coming into today, shares of the largest U.S. health insurer had lost 15.36% in the past month. In that same time, the Medical sector lost 3.8%, while the S&P 500 gained 0.34%.
Market participants will be closely following the financial results of UnitedHealth Group in its upcoming release. 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.
Investors should also take note of any recent adjustments to analyst estimates for UnitedHealth Group. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, UnitedHealth Group boasts a Zacks Rank of #3 (Hold).
Investors should also note UnitedHealth Group's current valuation metrics, including its Forward P/E ratio of 18.12. This represents a premium compared to its industry's average Forward P/E of 12.58.
It is also worth noting that UNH currently has a PEG ratio of 1.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical - HMOs industry had an average PEG ratio of 0.93 as trading concluded yesterday.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 26% 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.
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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