UnitedHealth Group (UNH) closed at $412.54 in the latest trading session, marking a -0.48% move from the prior day. This change was narrower than the S&P 500’s daily loss of 0.58%.
Coming into today, shares of the largest U.S. health insurer had lost 0.64% in the past month. In that same time, the Medical sector lost 0.62%, while the S&P 500 gained 0.16%.
Wall Street will be looking for positivity from UNH as it approaches its next earnings report date. 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.
For the full year, our Zacks Consensus Estimates are projecting earnings of $18.74 per share and revenue of $285.18 billion, which would represent changes of +11.02% and +10.91%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for UNH. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. UNH currently has a Zacks Rank of #3 (Hold).
Investors should also note UNH’s current valuation metrics, including its Forward P/E ratio of 22.12. Its industry sports an average Forward P/E of 19.04, so we one might conclude that UNH is trading at a premium comparatively.
It is also worth noting that UNH currently has a PEG ratio of 1.67. 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 1.1 as of yesterday’s close.
The Medical – HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 127, putting it in the top 50% 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.
To follow UNH in the coming trading sessions, be sure to utilize Zacks.com.
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