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Why the Market Dipped But UnitedHealth Group (UNH) Gained Today
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In the latest trading session, UnitedHealth Group (UNH - Free Report) closed at $456, marking a +0.06% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.03%.
The largest U.S. health insurer's stock has dropped by 4.37% in the past month, falling short of the Medical sector's loss of 0.6% and the S&P 500's gain of 2.57%.
Market participants will be closely following the financial results of UnitedHealth Group in its upcoming release. The company plans to announce its earnings on April 16, 2024. In that report, analysts expect UnitedHealth Group to post earnings of $6.71 per share. This would mark year-over-year growth of 7.19%. Alongside, our most recent consensus estimate is anticipating revenue of $99.48 billion, indicating an 8.21% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $27.78 per share and a revenue of $400.81 billion, demonstrating changes of +10.59% and +7.85%, respectively, from the preceding 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.16% lower within the past month. As of now, UnitedHealth Group holds a Zacks Rank of #3 (Hold).
Looking at valuation, UnitedHealth Group is presently trading at a Forward P/E ratio of 16.41. For comparison, its industry has an average Forward P/E of 15.95, which means UnitedHealth Group is trading at a premium to the group.
We can additionally observe that UNH currently boasts a PEG ratio of 1.24. 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. The Medical - HMOs was holding an average PEG ratio of 1.15 at yesterday's closing price.
The Medical - HMOs industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 196, finds itself in the bottom 23% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why the Market Dipped But UnitedHealth Group (UNH) Gained Today
In the latest trading session, UnitedHealth Group (UNH - Free Report) closed at $456, marking a +0.06% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.03%.
The largest U.S. health insurer's stock has dropped by 4.37% in the past month, falling short of the Medical sector's loss of 0.6% and the S&P 500's gain of 2.57%.
Market participants will be closely following the financial results of UnitedHealth Group in its upcoming release. The company plans to announce its earnings on April 16, 2024. In that report, analysts expect UnitedHealth Group to post earnings of $6.71 per share. This would mark year-over-year growth of 7.19%. Alongside, our most recent consensus estimate is anticipating revenue of $99.48 billion, indicating an 8.21% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $27.78 per share and a revenue of $400.81 billion, demonstrating changes of +10.59% and +7.85%, respectively, from the preceding 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.16% lower within the past month. As of now, UnitedHealth Group holds a Zacks Rank of #3 (Hold).
Looking at valuation, UnitedHealth Group is presently trading at a Forward P/E ratio of 16.41. For comparison, its industry has an average Forward P/E of 15.95, which means UnitedHealth Group is trading at a premium to the group.
We can additionally observe that UNH currently boasts a PEG ratio of 1.24. 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. The Medical - HMOs was holding an average PEG ratio of 1.15 at yesterday's closing price.
The Medical - HMOs industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 196, finds itself in the bottom 23% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.