In the latest trading session, UnitedHealth Group (UNH) closed at $415.39, marking a -1.39% move from the previous day. This move lagged the S&P 500’s daily loss of 0.13%.
Prior to today’s trading, shares of the largest U.S. health insurer had gained 2.3% over the past month. This has outpaced the Medical sector’s gain of 2.12% and the S&P 500’s gain of 2.07% in that time.
UNH will be looking to display strength as it nears its next earnings release. On that day, UNH is projected to report earnings of $4.40 per share, which would represent year-over-year growth of 25.36%. Meanwhile, our latest consensus estimate is calling for revenue of $71.37 billion, up 9.61% from the prior-year quarter.
UNH’s full-year Zacks Consensus Estimates are calling for earnings of $18.74 per share and revenue of $284.75 billion. These results would represent year-over-year changes of +11.02% and +10.74%, respectively.
Any recent changes to analyst estimates for UNH should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. UNH is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, UNH currently has a Forward P/E ratio of 22.48. This valuation marks a premium compared to its industry’s average Forward P/E of 19.25.
Investors should also note that UNH has a PEG ratio of 1.69 right now. 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. The Medical – HMOs industry currently had an average PEG ratio of 1.13 as of yesterday’s close.
The Medical – HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 123, which puts it in the top 49% 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.
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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