Back to top

Image: Bigstock

UnitedHealth Group (UNH) Stock Moves -0.28%: What You Should Know

Read MoreHide Full Article

UnitedHealth Group (UNH - Free Report) closed at $336.13 in the latest trading session, marking a -0.28% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.44%. At the same time, the Dow lost 0.62%, and the tech-heavy Nasdaq gained 0.5%.

Heading into today, shares of the largest U.S. health insurer had lost 4.89% over the past month, lagging the Medical sector's gain of 2.88% and the S&P 500's gain of 2.71% 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 $2.42 per share, which would represent a year-over-year decline of 37.95%. Our most recent consensus estimate is calling for quarterly revenue of $65.17 billion, up 7.02% from the year-ago period.

UNH's full-year Zacks Consensus Estimates are calling for earnings of $16.78 per share and revenue of $256.79 billion. These results would represent year-over-year changes of +11.05% and +6.04%, respectively.

It is also important to note the 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. UNH is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, UNH is holding a Forward P/E ratio of 20.09. This valuation marks a premium compared to its industry's average Forward P/E of 16.28.

Meanwhile, UNH's PEG ratio is currently 1.59. 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 1.33 based on yesterday's closing prices.

The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 17% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


UnitedHealth Group Incorporated (UNH) - free report >>

Published in