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UnitedHealth Group (UNH) Gains But Lags Market: What You Should Know
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UnitedHealth Group (UNH - Free Report) closed at $541.57 in the latest trading session, marking a +0.95% move from the prior day. This change lagged the S&P 500's 1.41% gain on the day. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Coming into today, shares of the largest U.S. health insurer had gained 0.35% in the past month. In that same time, the Medical sector lost 0.78%, while the S&P 500 gained 4.68%.
UnitedHealth Group will be looking to display strength as it nears its next earnings release. On that day, UnitedHealth Group is projected to report earnings of $5.47 per share, which would represent year-over-year growth of 21.02%. Meanwhile, our latest consensus estimate is calling for revenue of $80.71 billion, up 11.58% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.88 per share and revenue of $322.11 billion. These totals would mark changes of +15.04% and +12%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for UnitedHealth Group. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.19% higher within the past month. UnitedHealth Group is currently a Zacks Rank #3 (Hold).
Investors should also note UnitedHealth Group's current valuation metrics, including its Forward P/E ratio of 24.52. For comparison, its industry has an average Forward P/E of 18.37, which means UnitedHealth Group is trading at a premium to the group.
It is also worth noting that UNH currently has a PEG ratio of 1.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - HMOs industry currently had an average PEG ratio of 1.18 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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UnitedHealth Group (UNH) Gains But Lags Market: What You Should Know
UnitedHealth Group (UNH - Free Report) closed at $541.57 in the latest trading session, marking a +0.95% move from the prior day. This change lagged the S&P 500's 1.41% gain on the day. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Coming into today, shares of the largest U.S. health insurer had gained 0.35% in the past month. In that same time, the Medical sector lost 0.78%, while the S&P 500 gained 4.68%.
UnitedHealth Group will be looking to display strength as it nears its next earnings release. On that day, UnitedHealth Group is projected to report earnings of $5.47 per share, which would represent year-over-year growth of 21.02%. Meanwhile, our latest consensus estimate is calling for revenue of $80.71 billion, up 11.58% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.88 per share and revenue of $322.11 billion. These totals would mark changes of +15.04% and +12%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for UnitedHealth Group. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.19% higher within the past month. UnitedHealth Group is currently a Zacks Rank #3 (Hold).
Investors should also note UnitedHealth Group's current valuation metrics, including its Forward P/E ratio of 24.52. For comparison, its industry has an average Forward P/E of 18.37, which means UnitedHealth Group is trading at a premium to the group.
It is also worth noting that UNH currently has a PEG ratio of 1.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - HMOs industry currently had an average PEG ratio of 1.18 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.