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UnitedHealth Group (UNH) Stock Dips While Market Gains: Key Facts

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UnitedHealth Group (UNH - Free Report) closed the latest trading day at $594.10, indicating a -0.47% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 1.16%. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, added 1.16%.

Shares of the largest U.S. health insurer have appreciated by 6.82% over the course of the past month, outperforming the Medical sector's gain of 4.5% and the S&P 500's gain of 3.48%.

Analysts and investors alike will be keeping a close eye on the performance of UnitedHealth Group in its upcoming earnings disclosure. The company is expected to report EPS of $7.05, up 7.47% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $99.19 billion, reflecting a 7.39% rise from the equivalent quarter last year.

UNH's full-year Zacks Consensus Estimates are calling for earnings of $27.69 per share and revenue of $398.84 billion. These results would represent year-over-year changes of +10.23% and +7.32%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for UnitedHealth Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. UnitedHealth Group currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that UnitedHealth Group has a Forward P/E ratio of 21.56 right now. This valuation marks a premium compared to its industry's average Forward P/E of 16.31.

Meanwhile, UNH's PEG ratio is currently 1.66. 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. UNH's industry had an average PEG ratio of 1.4 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. With its current Zacks Industry Rank of 212, this industry ranks in the bottom 17% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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