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Here's Why UnitedHealth Group (UNH) Gained But Lagged the Market Today

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UnitedHealth Group (UNH - Free Report) closed the latest trading day at $578.78, indicating a +0.19% change from the previous session's end. The stock lagged the S&P 500's daily gain of 0.97%. Elsewhere, the Dow saw an upswing of 0.58%, while the tech-heavy Nasdaq appreciated by 1.39%.

Prior to today's trading, shares of the largest U.S. health insurer had gained 2.18% over the past month. This has outpaced the Medical sector's gain of 1.18% and the S&P 500's loss of 1.85% in that time.

Analysts and investors alike will be keeping a close eye on the performance of UnitedHealth Group in its upcoming earnings disclosure. The company is predicted to post an EPS of $7.05, indicating a 7.47% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $99.19 billion, up 7.39% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $27.69 per share and a revenue of $398.84 billion, indicating changes of +10.23% and +7.32%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for UnitedHealth Group. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. UnitedHealth Group is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that UnitedHealth Group has a Forward P/E ratio of 20.86 right now. This indicates a premium in contrast to its industry's Forward P/E of 15.15.

It is also worth noting that UNH currently has a PEG ratio of 1.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Medical - HMOs stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices.

The Medical - HMOs industry is part of the Medical sector. With its current Zacks Industry Rank of 215, this industry ranks in the bottom 16% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.


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