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UnitedHealth Group (UNH) closed the most recent trading day at $387.01, moving -1.38% from the previous trading session. This change lagged the S&P 500’s daily loss of 1.3%.
Prior to today’s trading, shares of the largest U.S. health insurer had lost 7.2% over the past month. This has lagged the Medical sector’s loss of 6.02% and the S&P 500’s loss of 3.58% in that time.
Investors will be hoping for strength from UNH as it approaches its next earnings release, which is expected to be October 14, 2021. In that report, analysts expect UNH to post earnings of $4.41 per share. This would mark year-over-year growth of 25.64%. Our most recent consensus estimate is calling for quarterly revenue of $71.5 billion, up 9.8% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $18.74 per share and revenue of $285.28 billion, which would represent changes of +11.02% and +10.94%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for UNH. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. UNH is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, UNH is holding a Forward P/E ratio of 20.94. Its industry sports an average Forward P/E of 18.21, so we one might conclude that UNH is trading at a premium comparatively.
Investors should also note that UNH has a PEG ratio of 1.58 right now. 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 1.14 based on yesterday’s closing prices.
The Medical – HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 113, which puts it in the top 45% 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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