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UnitedHealth Group (UNH) Advances But Underperforms Market: Key Facts
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In the latest trading session, UnitedHealth Group (UNH - Free Report) closed at $489.35, marking a +0.04% move from the previous day. This change lagged the S&P 500's 1.12% gain on the day. Elsewhere, the Dow saw an upswing of 0.61%, while the tech-heavy Nasdaq appreciated by 1.54%.
Shares of the largest U.S. health insurer have depreciated by 5.5% over the course of the past month, underperforming the Medical sector's gain of 2.49% and the S&P 500's gain of 2.06%.
The investment community will be closely monitoring the performance of UnitedHealth Group in its forthcoming earnings report. In that report, analysts expect UnitedHealth Group to post earnings of $6.54 per share. This would mark year-over-year growth of 4.47%. Meanwhile, our latest consensus estimate is calling for revenue of $99.45 billion, up 8.18% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $27.80 per share and revenue of $400.97 billion, indicating changes of +10.67% and +7.9%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for UnitedHealth Group. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. As of now, UnitedHealth Group holds a Zacks Rank of #3 (Hold).
In the context of valuation, UnitedHealth Group is at present trading with a Forward P/E ratio of 17.6. This signifies a premium in comparison to the average Forward P/E of 17.03 for its industry.
Investors should also note that UNH has a PEG ratio of 1.33 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. 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 industry, currently bearing a Zacks Industry Rank of 170, finds itself in the bottom 33% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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UnitedHealth Group (UNH) Advances But Underperforms Market: Key Facts
In the latest trading session, UnitedHealth Group (UNH - Free Report) closed at $489.35, marking a +0.04% move from the previous day. This change lagged the S&P 500's 1.12% gain on the day. Elsewhere, the Dow saw an upswing of 0.61%, while the tech-heavy Nasdaq appreciated by 1.54%.
Shares of the largest U.S. health insurer have depreciated by 5.5% over the course of the past month, underperforming the Medical sector's gain of 2.49% and the S&P 500's gain of 2.06%.
The investment community will be closely monitoring the performance of UnitedHealth Group in its forthcoming earnings report. In that report, analysts expect UnitedHealth Group to post earnings of $6.54 per share. This would mark year-over-year growth of 4.47%. Meanwhile, our latest consensus estimate is calling for revenue of $99.45 billion, up 8.18% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $27.80 per share and revenue of $400.97 billion, indicating changes of +10.67% and +7.9%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for UnitedHealth Group. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. As of now, UnitedHealth Group holds a Zacks Rank of #3 (Hold).
In the context of valuation, UnitedHealth Group is at present trading with a Forward P/E ratio of 17.6. This signifies a premium in comparison to the average Forward P/E of 17.03 for its industry.
Investors should also note that UNH has a PEG ratio of 1.33 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. 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 industry, currently bearing a Zacks Industry Rank of 170, finds itself in the bottom 33% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.