In the latest trading session, UnitedHealth Group (UNH - Free Report) closed at $225, marking a -1.65% move from the previous day. This change lagged the S&P 500's 0.84% loss on the day. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 1.47%.
Coming into today, shares of the largest U.S. health insurer had lost 1% in the past month. In that same time, the Medical sector gained 2.64%, while the S&P 500 gained 5.2%.
UNH will be looking to display strength as it nears its next earnings release, which is expected to be October 15, 2019. In that report, analysts expect UNH to post earnings of $3.77 per share. This would mark year-over-year growth of 10.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $59.81 billion, up 5.75% from the year-ago period.
UNH's full-year Zacks Consensus Estimates are calling for earnings of $14.81 per share and revenue of $242.23 billion. These results would represent year-over-year changes of +14.98% and +7.07%, respectively.
Investors might also notice recent changes to analyst estimates for UNH. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. UNH is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, UNH is currently trading at a Forward P/E ratio of 15.45. For comparison, its industry has an average Forward P/E of 15.58, which means UNH is trading at a discount to the group.
Investors should also note that UNH has a PEG ratio of 1.22 right now. 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. The Medical - HMOs was holding an average PEG ratio of 1.05 at yesterday's closing price.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.