UnitedHealth Group (UNH) Ascends While Market Falls: Some Facts to Note
The most recent trading session ended with UnitedHealth Group (UNH) standing at $492.31, reflecting a +1.32% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, lost 0.42%.
Coming into today, shares of the largest U.S. health insurer had lost 7.51% in the past month. In that same time, the Medical sector lost 1.21%, while the S&P 500 gained 2.67%.
Investors will be eagerly watching for the performance of UnitedHealth Group in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 16, 2024. It is anticipated that the company will report an EPS of $6.74, marking a 7.67% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $99.45 billion, up 8.18% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $27.82 per share and a revenue of $401.01 billion, demonstrating changes of +10.75% and +7.91%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for UnitedHealth Group. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% downward. UnitedHealth Group is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, UnitedHealth Group is currently trading at a Forward P/E ratio of 17.46. This denotes no noticeable deviation relative to the industry's average Forward P/E of 17.46.
Also, we should mention that UNH has a PEG ratio of 1.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Medical - HMOs industry held an average PEG ratio of 1.15.
The Medical - HMOs industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 192, positioning it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
