UnitedHealth Group (UNH – Free Report) closed the most recent trading day at $328.87, moving -1.01% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 2.45%. At the same time, the Dow lost 1.75%, and the tech-heavy Nasdaq lost 3.52%.
Prior to today’s trading, shares of the largest U.S. health insurer had lost 0.23% over the past month. This has was narrower than the Medical sector’s loss of 2.53% and lagged the S&P 500’s gain of 2.32% in that time.
Investors will be hoping for strength from UNH as it approaches its next earnings release. In that report, analysts expect UNH to post earnings of $4.41 per share. This would mark year-over-year growth of 18.55%. Meanwhile, our latest consensus estimate is calling for revenue of $68.91 billion, up 6.97% from the prior-year quarter.
UNH‘s full-year Zacks Consensus Estimates are calling for earnings of $18.19 per share and revenue of $278.25 billion. These results would represent year-over-year changes of +7.76% and +8.21%, respectively.
It is also important to note the recent changes to analyst estimates for UNH. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. UNH is currently a Zacks Rank #3 (Hold).
In terms of valuation, UNH is currently trading at a Forward P/E ratio of 18.26. This valuation marks a premium compared to its industry’s average Forward P/E of 17.91.
It is also worth noting that UNH currently has a PEG ratio of 1.44. 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. Medical – HMOs stocks are, on average, holding a PEG ratio of 1.33 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 204, which puts it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.