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UnitedHealth Group (UNH) Stock Slides as Market Rises: Facts to Know Before You Trade

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The most recent trading session ended with UnitedHealth Group (UNH - Free Report) standing at $608.52, reflecting a -0.28% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.25% for the day. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq gained 0.97%.

Shares of the largest U.S. health insurer have appreciated by 7.51% over the course of the past month, outperforming the Medical sector's loss of 1.79% and the S&P 500's gain of 3.51%.

Investors will be eagerly watching for the performance of UnitedHealth Group in its upcoming earnings disclosure. The company is expected to report EPS of $6.74, up 9.42% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $101.71 billion, up 7.71% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $27.61 per share and a revenue of $401.27 billion, demonstrating changes of +9.91% and +7.98%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. Right now, UnitedHealth Group possesses a Zacks Rank of #3 (Hold).

Looking at valuation, UnitedHealth Group is presently trading at a Forward P/E ratio of 22.1. This expresses a premium compared to the average Forward P/E of 12.71 of its industry.

It's also important to note that UNH currently trades at a PEG ratio of 1.79. 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. Medical - HMOs stocks are, on average, holding a PEG ratio of 1.03 based on yesterday's closing prices.

The Medical - HMOs industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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