In the latest trading session, UnitedHealth Group (UNH – Free Report) closed at $516.85, marking a +1.09% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.08% for the day. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq appreciated by 0.52%.
The largest U.S. health insurer’s shares have seen an increase of 1.77% over the last month, surpassing the Medical sector’s loss of 1.03% and the S&P 500’s loss of 7.33%.
Market participants will be closely following the financial results of UnitedHealth Group in its upcoming release. The company’s upcoming EPS is projected at $7.27, signifying a 5.21% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $111.01 billion, indicating a 11.24% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $29.63 per share and a revenue of $451.2 billion, demonstrating changes of +7.12% and +12.72%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for UnitedHealth Group. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, UnitedHealth Group boasts a Zacks Rank of #3 (Hold).
Investors should also note UnitedHealth Group’s current valuation metrics, including its Forward P/E ratio of 17.25. This represents a premium compared to its industry’s average Forward P/E of 14.87.
It is also worth noting that UNH currently has a PEG ratio of 1.39. 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. Medical – HMOs stocks are, on average, holding a PEG ratio of 1.11 based on yesterday’s closing prices.
The Medical – HMOs industry is part of the Medical sector. With its current Zacks Industry Rank of 184, this industry ranks in the bottom 27% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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