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

Company Performance - UnitedHealth Group (UNH) closed at $489.23, down 1.59% from the previous trading day, underperforming the S&P 500's gain of 0.77% [1] - The stock has decreased by 5.24% over the past month, while the Medical sector gained 1.49% and the S&P 500 increased by 3.71% [1] - The upcoming earnings release on July 16, 2024, is anticipated to show an EPS of $6.70, reflecting a 9.12% growth year-over-year, with expected quarterly revenue of $98.92 billion, up 6.48% from the previous year [1] Annual Estimates - For the annual period, earnings are projected at $27.57 per share and revenue at $398.24 billion, indicating increases of 9.75% and 7.16% respectively compared to last year [2] - Recent changes to analyst estimates are seen as indicators of the company's business outlook, with positive revisions suggesting optimism [2] Valuation Metrics - UnitedHealth Group has a Forward P/E ratio of 18.03, which is higher than the industry average of 16.13, indicating a premium valuation [3] - The PEG ratio for UNH is currently 1.44, compared to the industry average of 1.23, suggesting that the stock is priced higher relative to its projected earnings growth [3] Industry Context - The Medical - HMOs industry is ranked 71 in the Zacks Industry Rank, placing it in the top 29% of over 250 industries [4] - The Zacks Industry Rank is based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [4]