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UnitedHealth Group (UNH) Stock Drops Despite Market Gains: Important Facts to Note

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UnitedHealth Group (UNH - Free Report) closed at $347.89 in the latest trading session, marking a -1.31% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.47% for the day. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.94%.

The largest U.S. health insurer's stock has climbed by 15.95% in the past month, exceeding the Medical sector's gain of 5.49% and the S&P 500's gain of 2.32%.

Investors will be eagerly watching for the performance of UnitedHealth Group in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.87, signifying a 59.86% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $113.54 billion, reflecting a 12.61% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $16.21 per share and a revenue of $448.87 billion, signifying shifts of -41.4% and +12.14%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for UnitedHealth Group. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.34% lower. At present, UnitedHealth Group boasts a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, UnitedHealth Group is holding a Forward P/E ratio of 21.75. This indicates a premium in contrast to its industry's Forward P/E of 16.27.

We can also see that UNH currently has a PEG ratio of 2.28. 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. Medical - HMOs stocks are, on average, holding a PEG ratio of 1.35 based on yesterday's closing prices.

The Medical - HMOs industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 233, finds itself in the bottom 6% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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