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UnitedHealth Group (UNH) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest market close, UnitedHealth Group (UNH - Free Report) reached $543.59, with a -0.64% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.2% for the day. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.07%.

The largest U.S. health insurer's stock has climbed by 4.28% in the past month, exceeding the Medical sector's gain of 2.94% and lagging the S&P 500's gain of 7.49%.

Investors will be eagerly watching for the performance of UnitedHealth Group in its upcoming earnings disclosure. The company's upcoming EPS is projected at $5.98, signifying a 11.99% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $92.04 billion, indicating a 11.18% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $24.95 per share and revenue of $369.24 billion, indicating changes of +12.44% and +13.91%, respectively, compared to the previous year.

Any recent changes to analyst estimates for UnitedHealth Group should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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 0.05% higher within the past month. UnitedHealth Group is currently a Zacks Rank #3 (Hold).

Looking at valuation, UnitedHealth Group is presently trading at a Forward P/E ratio of 21.93. This denotes a premium relative to the industry's average Forward P/E of 17.66.

We can additionally observe that UNH currently boasts a PEG ratio of 1.66. 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 1.13 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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