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UnitedHealth Group (UNH) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, UnitedHealth Group (UNH - Free Report) closed at $543.68, marking a -1.11% move from the previous day. This change lagged the S&P 500's daily gain of 0.39%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.2%.

The the stock of largest U.S. health insurer has risen by 1.58% in the past month, lagging the Medical sector's gain of 2.91% and the S&P 500's gain of 5.28%.

Analysts and investors alike will be keeping a close eye on the performance of UnitedHealth Group in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $5.98, marking a 11.99% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $91.96 billion, showing a 11.08% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $24.95 per share and a revenue of $368.89 billion, demonstrating changes of +12.44% and +13.8%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for UnitedHealth Group. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. UnitedHealth Group is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, UnitedHealth Group is holding a Forward P/E ratio of 22.04. This expresses a premium compared to the average Forward P/E of 17.02 of its industry.

We can also see that UNH currently has a PEG ratio of 1.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Medical - HMOs industry held an average PEG ratio of 1.08.

The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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