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UnitedHealth Group (UNH) Gains But Lags Market: What You Should Know
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UnitedHealth Group (UNH - Free Report) closed the most recent trading day at $502.28, moving +0.03% from the previous trading session. This change lagged the S&P 500's 0.64% gain on the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.46%.
Prior to today's trading, shares of the largest U.S. health insurer had gained 11.76% over the past month. This has outpaced the Medical sector's gain of 5.28% and the S&P 500's gain of 4.56% in that time.
Investors will be hoping for strength from UnitedHealth Group as it approaches its next earnings release, which is expected to be January 19, 2022. On that day, UnitedHealth Group is projected to report earnings of $4.42 per share, which would represent year-over-year growth of 75.4%. Meanwhile, our latest consensus estimate is calling for revenue of $72.73 billion, up 11.09% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for UnitedHealth Group. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.03% higher within the past month. UnitedHealth Group is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, UnitedHealth Group is currently trading at a Forward P/E ratio of 26.66. This valuation marks a premium compared to its industry's average Forward P/E of 23.19.
We can also see that UNH currently has a PEG ratio of 1.86. 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. Medical - HMOs stocks are, on average, holding a PEG ratio of 1.3 based on yesterday's closing prices.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 20% 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.
View the Zacks #1 Rank List
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UnitedHealth Group (UNH) Gains But Lags Market: What You Should Know
UnitedHealth Group (UNH - Free Report) closed the most recent trading day at $502.28, moving +0.03% from the previous trading session. This change lagged the S&P 500's 0.64% gain on the day. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.46%.
Prior to today's trading, shares of the largest U.S. health insurer had gained 11.76% over the past month. This has outpaced the Medical sector's gain of 5.28% and the S&P 500's gain of 4.56% in that time.
Investors will be hoping for strength from UnitedHealth Group as it approaches its next earnings release, which is expected to be January 19, 2022. On that day, UnitedHealth Group is projected to report earnings of $4.42 per share, which would represent year-over-year growth of 75.4%. Meanwhile, our latest consensus estimate is calling for revenue of $72.73 billion, up 11.09% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for UnitedHealth Group. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.03% higher within the past month. UnitedHealth Group is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, UnitedHealth Group is currently trading at a Forward P/E ratio of 26.66. This valuation marks a premium compared to its industry's average Forward P/E of 23.19.
We can also see that UNH currently has a PEG ratio of 1.86. 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. Medical - HMOs stocks are, on average, holding a PEG ratio of 1.3 based on yesterday's closing prices.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 20% 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.