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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 $492.08, moving +1.31% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.86%. Elsewhere, the Dow gained 1.98%, while the tech-heavy Nasdaq added 0.24%.

Prior to today's trading, shares of the largest U.S. health insurer had lost 6.76% over the past month. This has was narrower than the Medical sector's loss of 8.28% and the S&P 500's loss of 12.37% in that time.

Wall Street will be looking for positivity from UnitedHealth Group as it approaches its next earnings report date. This is expected to be July 15, 2022. In that report, analysts expect UnitedHealth Group to post earnings of $5.25 per share. This would mark year-over-year growth of 11.7%. Meanwhile, our latest consensus estimate is calling for revenue of $79.67 billion, up 11.71% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.76 per share and revenue of $320.9 billion. These totals would mark changes of +14.41% and +11.58%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for UnitedHealth Group. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. UnitedHealth Group is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, UnitedHealth Group is holding a Forward P/E ratio of 22.33. For comparison, its industry has an average Forward P/E of 17.57, which means UnitedHealth Group is trading at a premium to the group.

Also, we should mention that UNH has a PEG ratio of 1.51. 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. UNH's industry had an average PEG ratio of 1.2 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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