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Is UnitedHealth Group (UNH) a 'Buy' Ahead of Its Upcoming Earnings Announcement?
One of the largest health insurers across America, UnitedHealth Group is expected to report fourth-quarter earnings results on Tuesday before the opening bell. A Zacks Rank #3 (Hold) stock, UnitedHealth Group (UNH - Free Report) has missed earnings estimates in two of the past four quarters. But with the stock showing momentum off the lows of last year, is UNH a buy ahead of the release?
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Analysts anticipate the company to post a profit of $2.09 per share, reflecting a -69.3% decline versus the same quarter in the prior year. Estimates for the quarter have remained steady over the past 60 days. Revenues are projected to rise 12.4% to $113.3 billion.
The health insurer posted a trailing four-quarter average earnings miss of -2.25%. Elevated debt and interest expenses are straining the company’s financial flexibility.
Weak guidance and leadership changes have added further uncertainty. Shares remain overvalued relative to industry peers. Investors would be wise to exercise caution ahead of Tuesday’s announcement.