UnitedHealth Group (UNH) closed at $510.28 in the latest trading session, marking a +0.83% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.45%.
Heading into today, shares of the largest U.S. health insurer had gained 3.47% over the past month, outpacing the Medical sector's loss of 5.26% and the S&P 500's loss of 1.38% in that time.
Wall Street will be looking for positivity from UnitedHealth Group as it approaches its next earnings report date. This is expected to be October 13, 2023. The company is expected to report EPS of $6.33, up 9.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $91.43 billion, up 13.03% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $24.83 per share and revenue of $368.16 billion, which would represent changes of +11.9% and +13.57%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for UnitedHealth Group. Recent revisions tend to reflect the latest 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 shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 moved 0.02% lower. UnitedHealth Group is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, UnitedHealth Group currently has a Forward P/E ratio of 20.38. For comparison, its industry has an average Forward P/E of 16.09, which means UnitedHealth Group is trading at a premium to the group.
It is also worth noting that UNH currently has a PEG ratio of 1.49. 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. Medical - HMOs stocks are, on average, holding a PEG ratio of 1.1 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 80, 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.
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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