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UnitedHealth Group (UNH) Gains As Market Dips: What You Should Know

Zacks Equity Research

UnitedHealth Group (UNH) closed the most recent trading day at $283.87, moving +0.32% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.71%. Elsewhere, the Dow lost 0.98%, while the tech-heavy Nasdaq lost 1.87%.

Prior to today's trading, shares of the largest U.S. health insurer had lost 3.25% over the past month. This has was narrower than the Medical sector's loss of 5.27% and the S&P 500's loss of 9.13% in that time.

Wall Street will be looking for positivity from UNH as it approaches its next earnings report date. In that report, analysts expect UNH to post earnings of $3.62 per share. This would mark a year-over-year decline of 2.95%. Meanwhile, our latest consensus estimate is calling for revenue of $64.67 billion, up 7.23% from the prior-year quarter.

UNH's full-year Zacks Consensus Estimates are calling for earnings of $16.47 per share and revenue of $263.11 billion. These results would represent year-over-year changes of +9% and +8.66%, respectively.

Investors might also notice recent changes to analyst estimates for UNH. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. UNH currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, UNH is holding a Forward P/E ratio of 17.18. This represents a premium compared to its industry's average Forward P/E of 15.15.

Meanwhile, UNH's PEG ratio is currently 1.34. 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. UNH's industry had an average PEG ratio of 1 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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