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UnitedHealth Group (UNH) Stock Sinks As Market Gains: What You Should Know

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UnitedHealth Group (UNH - Free Report) closed at $363.39 in the latest trading session, marking a -0.45% move from the prior day. This change lagged the S&P 500's 0.55% gain on the day. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 1.03%.

Heading into today, shares of the largest U.S. health insurer had gained 7.47% over the past month, outpacing the Medical sector's gain of 2.05% and the S&P 500's gain of 3.13% in that time.

Wall Street will be looking for positivity from UNH as it approaches its next earnings report date. This is expected to be January 20, 2021. In that report, analysts expect UNH to post earnings of $2.43 per share. This would mark a year-over-year decline of 37.69%. Meanwhile, our latest consensus estimate is calling for revenue of $65.24 billion, up 7.12% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for UNH. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. 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 20.03. This represents a discount compared to its industry's average Forward P/E of 20.22.

We can also see that UNH currently has a PEG ratio of 1.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. UNH's industry had an average PEG ratio of 1.48 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 11% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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