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UnitedHealth Group (UNH) Stock Sinks As Market Gains: Here's Why

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UnitedHealth Group (UNH - Free Report) ended the recent trading session at $278.58, demonstrating a -4.76% change from the preceding day's closing price. This change lagged the S&P 500's 0.07% gain on the day. On the other hand, the Dow registered a loss of 0.7%, and the technology-centric Nasdaq increased by 0.18%.

The largest U.S. health insurer's shares have seen a decrease of 3.15% over the last month, not keeping up with the Medical sector's gain of 2.39% and the S&P 500's gain of 5.71%.

The upcoming earnings release of UnitedHealth Group will be of great interest to investors. The company's earnings report is expected on July 29, 2025. In that report, analysts expect UnitedHealth Group to post earnings of $4.84 per share. This would mark a year-over-year decline of 28.82%. Alongside, our most recent consensus estimate is anticipating revenue of $111.55 billion, indicating a 12.84% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $21.15 per share and a revenue of $448.53 billion, signifying shifts of -23.54% and +12.06%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for UnitedHealth Group. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

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.

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. Over the past month, the Zacks Consensus EPS estimate has shifted 4.19% downward. UnitedHealth Group presently features a Zacks Rank of #4 (Sell).

Looking at valuation, UnitedHealth Group is presently trading at a Forward P/E ratio of 13.83. This expresses a premium compared to the average Forward P/E of 12.94 of its industry.

We can also see that UNH currently has a PEG ratio of 1.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. UNH's industry had an average PEG ratio of 1.05 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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