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UnitedHealth Group (UNH) closed at $483.73 in the latest trading session, marking a -0.7% move from the prior day. This change was narrower than the S&P 500's 1.14% loss on the day. Elsewhere, the Dow lost 1.23%, while the tech-heavy Nasdaq lost 0.36%.
Prior to today's trading, shares of the largest U.S. health insurer had gained 10.71% over the past month. This has outpaced the Medical sector's loss of 0.74% and the S&P 500's loss of 1.37% in that time.
Wall Street will be looking for positivity from UnitedHealth Group as it approaches its next earnings report date. The company is expected to report EPS of $4.31, up 71.03% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $72.73 billion, up 11.09% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $18.85 per share and revenue of $287.08 billion, which would represent changes of +11.67% and +11.64%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for UnitedHealth Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. UnitedHealth Group is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note UnitedHealth Group's current valuation metrics, including its Forward P/E ratio of 25.84. This valuation marks a premium compared to its industry's average Forward P/E of 22.36.
Meanwhile, UNH's PEG ratio is currently 1.76. 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 1.28 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 12% 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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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
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