Yahoo Finance UnitedHealth Group (UNH) Gains As Market Dips: What You Should Know
UnitedHealth Group (UNH) closed the most recent trading day at $508.44, moving +0.55% from the previous trading session. This move outpaced the S&P 500's daily loss of 2.01%. Elsewhere, the Dow lost 1.56%, while the tech-heavy Nasdaq lost 0.2%.
Heading into today, shares of the largest U.S. health insurer had lost 0.29% over the past month, outpacing the Medical sector's loss of 2.07% and the S&P 500's loss of 6.08% in that time.
Investors will be hoping for strength from UnitedHealth Group as it approaches its next earnings release, which is expected to be July 15, 2022. On that day, UnitedHealth Group is projected to report earnings of $5.25 per share, which would represent year-over-year growth of 11.7%. Our most recent consensus estimate is calling for quarterly revenue of $79.67 billion, up 11.71% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $21.76 per share and revenue of $320.9 billion. These totals would mark changes of +14.41% and +11.58%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for UnitedHealth Group. Recent revisions tend to reflect the latest near-term business trends. 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.
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 remained stagnant within the past month. UnitedHealth Group is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, UnitedHealth Group is currently trading at a Forward P/E ratio of 23.24. This represents a premium compared to its industry's average Forward P/E of 16.43.
Also, we should mention that UNH has a PEG ratio of 1.57. 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 1.2 at yesterday's closing price.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
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