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The latest trading session saw UnitedHealth Group (UNH) ending at $461.52, denoting a -1.05% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.5% for the day. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 1.21%.
Shares of the largest U.S. health insurer witnessed a loss of 12.41% over the previous month, trailing the performance of the Medical sector with its gain of 2.66% and the S&P 500's loss of 0.47%.
Market participants will be closely following the financial results of UnitedHealth Group in its upcoming release. The company's upcoming EPS is projected at $7.24, signifying a 4.78% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $110.97 billion, reflecting a 11.2% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $29.54 per share and a revenue of $451.19 billion, representing changes of +6.8% and +12.72%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for UnitedHealth Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 0.65% fall in the Zacks Consensus EPS estimate. Currently, UnitedHealth Group is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, UnitedHealth Group is currently being traded at a Forward P/E ratio of 15.79. This represents a premium compared to its industry's average Forward P/E of 15.5.
One should further note that UNH currently holds a PEG ratio of 1.27. 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. As the market closed yesterday, the Medical - HMOs industry was having an average PEG ratio of 1.