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UnitedHealth Group (UNH) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, UnitedHealth Group (UNH - Free Report) closed at $395.56, marking a -0.79% move from the previous day. This change lagged the S&P 500's 0.11% loss on the day.

Prior to today's trading, shares of the largest U.S. health insurer had lost 3.48% over the past month. This has lagged the Medical sector's gain of 2.36% and the S&P 500's gain of 2.23% 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 $4.40 per share, which would represent a year-over-year decline of 38.2%. Meanwhile, our latest consensus estimate is calling for revenue of $69.55 billion, up 11.92% from the prior-year quarter.

UNH's full-year Zacks Consensus Estimates are calling for earnings of $18.61 per share and revenue of $282.16 billion. These results would represent year-over-year changes of +10.25% and +9.73%, respectively.

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

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, 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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. UNH is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, UNH is holding a Forward P/E ratio of 21.43. This valuation marks a premium compared to its industry's average Forward P/E of 18.47.

Investors should also note that UNH has a PEG ratio of 1.62 right now. 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. The Medical - HMOs was holding an average PEG ratio of 1.2 at yesterday's closing price.

The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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