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Here's Why UnitedHealth Group (UNH) Fell More Than Broader Market
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In the latest trading session, UnitedHealth Group (UNH - Free Report) closed at $583.56, marking a -1.29% move from the previous day. This change lagged the S&P 500's 0.96% loss on the day. Elsewhere, the Dow lost 0.94%, while the tech-heavy Nasdaq lost 1.18%.
Shares of the largest U.S. health insurer have depreciated by 0.95% over the course of the past month, outperforming the Medical sector's loss of 3.69% and lagging the S&P 500's gain of 4.3%.
Analysts and investors alike will be keeping a close eye on the performance of UnitedHealth Group in its upcoming earnings disclosure. The company's earnings report is set to go public on October 15, 2024. The company is predicted to post an EPS of $7.02, indicating a 7.01% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $99.55 billion, showing a 7.78% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $27.69 per share and a revenue of $399.68 billion, representing changes of +10.23% and +7.55%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for UnitedHealth Group. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, UnitedHealth Group possesses a Zacks Rank of #4 (Sell).
Investors should also note UnitedHealth Group's current valuation metrics, including its Forward P/E ratio of 21.35. This valuation marks a premium compared to its industry's average Forward P/E of 14.89.
Also, we should mention that UNH has a PEG ratio of 1.65. 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. As of the close of trade yesterday, the Medical - HMOs industry held an average PEG ratio of 1.4.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 237, which puts it in the bottom 6% of all 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.
To follow UNH in the coming trading sessions, be sure to utilize Zacks.com.
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Here's Why UnitedHealth Group (UNH) Fell More Than Broader Market
In the latest trading session, UnitedHealth Group (UNH - Free Report) closed at $583.56, marking a -1.29% move from the previous day. This change lagged the S&P 500's 0.96% loss on the day. Elsewhere, the Dow lost 0.94%, while the tech-heavy Nasdaq lost 1.18%.
Shares of the largest U.S. health insurer have depreciated by 0.95% over the course of the past month, outperforming the Medical sector's loss of 3.69% and lagging the S&P 500's gain of 4.3%.
Analysts and investors alike will be keeping a close eye on the performance of UnitedHealth Group in its upcoming earnings disclosure. The company's earnings report is set to go public on October 15, 2024. The company is predicted to post an EPS of $7.02, indicating a 7.01% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $99.55 billion, showing a 7.78% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $27.69 per share and a revenue of $399.68 billion, representing changes of +10.23% and +7.55%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for UnitedHealth Group. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, UnitedHealth Group possesses a Zacks Rank of #4 (Sell).
Investors should also note UnitedHealth Group's current valuation metrics, including its Forward P/E ratio of 21.35. This valuation marks a premium compared to its industry's average Forward P/E of 14.89.
Also, we should mention that UNH has a PEG ratio of 1.65. 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. As of the close of trade yesterday, the Medical - HMOs industry held an average PEG ratio of 1.4.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 237, which puts it in the bottom 6% of all 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.
To follow UNH in the coming trading sessions, be sure to utilize Zacks.com.