UnitedHealth Group (UNH - Free Report) closed at $267.65 in the latest trading session, marking a -0.28% move from the prior day. This change trading in line with S&P 500. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq lost 1.19%.
Prior to today's trading, shares of the largest U.S. health insurer had gained 4.22% over the past month. This has outpaced the Medical sector's gain of 2.87% and the S&P 500's gain of 2.24% in that time.
Investors will be hoping for strength from UNH as it approaches its next earnings release, which is expected to be October 16, 2018. In that report, analysts expect UNH to post earnings of $3.30 per share. This would mark year-over-year growth of 24.06%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $56.13 billion, up 11.54% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.72 per share and revenue of $224.86 billion. These totals would mark changes of +26.32% and +11.78%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for UNH. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. UNH is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, UNH is holding a Forward P/E ratio of 21.11. Its industry sports an average Forward P/E of 18.54, so we one might conclude that UNH is trading at a premium comparatively.
Meanwhile, UNH's PEG ratio is currently 1.6. 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. The Medical - HMOs industry currently had an average PEG ratio of 1.43 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 29, putting it in the top 11% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.