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UnitedHealth Group (UNH) Dips More Than Broader Markets: What You Should Know

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UnitedHealth Group (UNH) closed the most recent trading day at $492.55, moving -0.85% from the previous trading session. This change lagged the S&P 500's daily loss of 0.75%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.24%.

Coming into today, shares of the largest U.S. health insurer had lost 0.57% in the past month. In that same time, the Medical sector gained 0.21%, while the S&P 500 gained 0.32%.

UnitedHealth Group will be looking to display strength as it nears its next earnings release, which is expected to be July 15, 2022. In that report, analysts expect UnitedHealth Group to post earnings of $5.25 per share. This would mark year-over-year growth of 11.7%. Our most recent consensus estimate is calling for quarterly revenue of $79.67 billion, up 11.71% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.76 per share and revenue of $320.9 billion. These totals would mark changes of +14.41% and +11.58%, respectively, from last year.

Investors might also notice recent changes 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 shows that these estimate changes are directly correlated with near-term stock prices. 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 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 past month, the Zacks Consensus EPS estimate has moved 0.04% higher. UnitedHealth Group is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note UnitedHealth Group's current valuation metrics, including its Forward P/E ratio of 22.84. For comparison, its industry has an average Forward P/E of 17.33, which means UnitedHealth Group is trading at a premium to the group.

Meanwhile, UNH's PEG ratio is currently 1.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - HMOs was holding an average PEG ratio of 1.18 at yesterday's closing price.

The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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