U.S. Markets close in 1 hr 10 mins

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

Zacks Equity Research
Idex (IEX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

In the latest trading session, UnitedHealth Group (UNH) closed at $240.76, marking a -0.43% move from the previous day. This change lagged the S&P 500's 2.14% gain on the day. At the same time, the Dow added 2.06%, and the tech-heavy Nasdaq gained 2.65%.

Coming into today, shares of the largest U.S. health insurer had lost 1.64% in the past month. In that same time, the Medical sector lost 3.29%, while the S&P 500 lost 6.63%.

Investors will be hoping for strength from UNH as it approaches its next earnings release. On that day, UNH is projected to report earnings of $3.47 per share, which would represent year-over-year growth of 10.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $60.61 billion, up 8.07% from the year-ago period.

UNH's full-year Zacks Consensus Estimates are calling for earnings of $14.71 per share and revenue of $243.86 billion. These results would represent year-over-year changes of +14.21% and +7.79%, respectively.

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

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. UNH is currently a Zacks Rank #3 (Hold).

Investors should also note UNH's current valuation metrics, including its Forward P/E ratio of 16.09. This valuation marks a premium compared to its industry's average Forward P/E of 14.29.

Meanwhile, UNH's PEG ratio is currently 1.27. 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. UNH's industry had an average PEG ratio of 1.02 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 15, putting it in the top 6% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow UNH in the coming trading sessions, be sure to utilize Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research