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UnitedHealth Group (UNH) Stock Declines While Market Improves: Some Information for Investors

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The latest trading session saw UnitedHealth Group (UNH - Free Report) ending at $517.23, denoting a -1.41% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.09%. Meanwhile, the Dow experienced a drop of 0.49%, and the technology-dominated Nasdaq saw an increase of 0.65%.

Shares of the largest U.S. health insurer witnessed a gain of 4.69% over the previous month, trailing the performance of the Medical sector with its gain of 5.88% and the S&P 500's gain of 5.78%.

The investment community will be paying close attention to the earnings performance of UnitedHealth Group in its upcoming release. The company is predicted to post an EPS of $6.76, indicating a 10.1% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $98.88 billion, showing a 6.44% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $27.60 per share and a revenue of $398.1 billion, representing changes of +9.87% and +7.13%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for UnitedHealth Group. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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. Over the past month, there's been a 0.42% fall in the Zacks Consensus EPS estimate. UnitedHealth Group presently features a Zacks Rank of #3 (Hold).

With respect to valuation, UnitedHealth Group is currently being traded at a Forward P/E ratio of 19.01. This expresses a premium compared to the average Forward P/E of 16.19 of its industry.

It is also worth noting that UNH currently has a PEG ratio of 1.52. 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. As of the close of trade yesterday, the Medical - HMOs industry held an average PEG ratio of 1.18.

The Medical - HMOs industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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