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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 $412.70, marking a -1.78% move from the previous day. This change lagged the S&P 500's daily loss of 1.7%.

Prior to today's trading, shares of the largest U.S. health insurer had lost 2.22% over the past month. This has lagged the Medical sector's loss of 1.41% and the S&P 500's loss of 0.27% in that time.

UNH will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.40, up 25.36% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $71.37 billion, up 9.61% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $18.74 per share and revenue of $285.18 billion, which would represent changes of +11.02% and +10.91%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for UNH. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. UNH is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that UNH has a Forward P/E ratio of 22.42 right now. For comparison, its industry has an average Forward P/E of 18.98, which means UNH is trading at a premium to the group.

We can also see that UNH currently has a PEG ratio of 1.69. 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. Medical - HMOs stocks are, on average, holding a PEG ratio of 1.15 based on yesterday's closing prices.

The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 121, putting it in the top 48% 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.

To follow UNH in the coming trading sessions, be sure to utilize Zacks.com.


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