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UnitedHealth (UNH) Loses 0.7% Ahead of Earnings: What To Watch
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Shares of UnitedHealth (UNH - Free Report) lost about 0.7% during regular hours Monday, the last day of trading before it releases its latest quarterly earnings report. Investors clearly displayed some hesitation ahead of the report, but investors will still want to keep a close eye on this stock throughout the day Tuesday.
UnitedHealth has outperformed its industry so far this year, and it owes that performance to the strength of its robust Government business and continued success at Optum. That said, a disappointing report could take the wind out of the stock’s sails, and investors will want to be fully prepared.
According to our latest Zacks Consensus Estimates, analysts expect UnitedHealth to report adjusted earnings of $3.03 per share and total revenue of $56.11 billion. These results would mark year-over-year growth rates of 23% and 12%, respectively.
Investors should note that UNH’s consensus earnings projection has remained flat over the duration of the quarter. Still, one positive revision to the company’s full-year EPS estimates in the past week has lifted that projection, and this positive activity was enough to earn the stock a Zacks Rank #2 (Buy).
Looking at share price performance, UNH has added about 17% in 2018. More recently, shares have gained about 9.5% in the trailing 12 weeks, including a respectable 1% move higher this month.
A strong earnings beat might be what UnitedHealth needs in order to start generating more positive momentum. To gauge how likely the company is to outperform estimates tomorrow morning, we can turn to our exclusive Earnings ESP figure.
Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
UNH has an Earnings ESP of +0.03%. This, combined with its Zacks Rank, make us feel comfortable about its chances at beating earnings estimates on Tuesday morning. Plus, the company is a consistent earnings performer and has not missed estimates since 2008.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeneyon Twitter!
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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UnitedHealth (UNH) Loses 0.7% Ahead of Earnings: What To Watch
Shares of UnitedHealth (UNH - Free Report) lost about 0.7% during regular hours Monday, the last day of trading before it releases its latest quarterly earnings report. Investors clearly displayed some hesitation ahead of the report, but investors will still want to keep a close eye on this stock throughout the day Tuesday.
UnitedHealth has outperformed its industry so far this year, and it owes that performance to the strength of its robust Government business and continued success at Optum. That said, a disappointing report could take the wind out of the stock’s sails, and investors will want to be fully prepared.
According to our latest Zacks Consensus Estimates, analysts expect UnitedHealth to report adjusted earnings of $3.03 per share and total revenue of $56.11 billion. These results would mark year-over-year growth rates of 23% and 12%, respectively.
Investors should note that UNH’s consensus earnings projection has remained flat over the duration of the quarter. Still, one positive revision to the company’s full-year EPS estimates in the past week has lifted that projection, and this positive activity was enough to earn the stock a Zacks Rank #2 (Buy).
Looking at share price performance, UNH has added about 17% in 2018. More recently, shares have gained about 9.5% in the trailing 12 weeks, including a respectable 1% move higher this month.
A strong earnings beat might be what UnitedHealth needs in order to start generating more positive momentum. To gauge how likely the company is to outperform estimates tomorrow morning, we can turn to our exclusive Earnings ESP figure.
Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
UNH has an Earnings ESP of +0.03%. This, combined with its Zacks Rank, make us feel comfortable about its chances at beating earnings estimates on Tuesday morning. Plus, the company is a consistent earnings performer and has not missed estimates since 2008.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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