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UnitedHealth Group (UNH) Stock Moves -0.35%: What You Should Know

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UnitedHealth Group (UNH - Free Report) closed the most recent trading day at $479.85, moving -0.35% from the previous trading session. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq lost 2.33%.

Prior to today's trading, shares of the largest U.S. health insurer had lost 2.86% over the past month. This has was narrower than the Medical sector's loss of 3.43% and lagged the S&P 500's gain of 1.03% in that time.

UnitedHealth Group will be looking to display strength as it nears its next earnings release. On that day, UnitedHealth Group is projected to report earnings of $6.10 per share, which would represent year-over-year growth of 9.52%. Meanwhile, our latest consensus estimate is calling for revenue of $90.23 billion, up 12.32% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $24.97 per share and revenue of $363.9 billion, which would represent changes of +12.53% and +12.26%, respectively, from the prior year.

Any recent changes to analyst estimates for UnitedHealth Group should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. UnitedHealth Group is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that UnitedHealth Group has a Forward P/E ratio of 19.29 right now. Its industry sports an average Forward P/E of 16.16, so we one might conclude that UnitedHealth Group is trading at a premium comparatively.

Meanwhile, UNH's PEG ratio is currently 1.4. 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. The Medical - HMOs was holding an average PEG ratio of 1.03 at yesterday's closing price.

The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 27% 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.

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