In the latest trading session, UnitedHealth Group (UNH - Free Report) closed at $289.94, marking a +1.06% move from the previous day. This move outpaced the S&P 500's daily gain of 0.24%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.43%.
Investors will be hoping for strength from UNH as it approaches its next earnings release. On that day, UNH is projected to report earnings of $4.78 per share, which would represent year-over-year growth of 32.78%. Meanwhile, our latest consensus estimate is calling for revenue of $63.96 billion, up 5.55% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.24 per share and revenue of $259.10 billion, which would represent changes of +7.48% and +7%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for UNH. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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. The Zacks Consensus EPS estimate has moved 0.23% lower within the past month. UNH currently has a Zacks Rank of #3 (Hold).
In terms of valuation, UNH is currently trading at a Forward P/E ratio of 17.66. Its industry sports an average Forward P/E of 16.28, so we one might conclude that UNH is trading at a premium comparatively.
We can also see that UNH currently has a PEG ratio of 1.41. 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 1.28 at yesterday's closing price.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.