UnitedHealth Group (UNH) Stock Drops Despite Market Gains: Important Facts to Note

Company Performance - UnitedHealth Group (UNH) closed at $347.89, reflecting a -1.31% change from the previous day, underperforming the S&P 500 which gained 0.47% [1] - The stock has increased by 15.95% over the past month, outperforming the Medical sector's gain of 5.49% and the S&P 500's gain of 2.32% [1] Earnings Projections - Upcoming EPS for UnitedHealth Group is projected at $2.87, indicating a significant 59.86% decline compared to the same quarter last year [2] - Revenue is estimated at $113.54 billion, representing a 12.61% increase from the equivalent quarter last year [2] Annual Estimates - For the annual period, earnings are anticipated to be $16.21 per share, reflecting a -41.4% change from the previous year, while revenue is projected at $448.87 billion, showing a +12.14% increase [3] Analyst Estimates - Recent modifications to analyst estimates are crucial for understanding near-term business trends, with positive revisions indicating analysts' confidence in performance and profit potential [4] - The Zacks Rank system, which incorporates estimate changes, provides actionable ratings for investors [5] Zacks Rank and Valuation - UnitedHealth Group currently holds a Zacks Rank of 5 (Strong Sell), with the consensus EPS estimate moving 1.34% lower over the past month [6] - The company has a Forward P/E ratio of 21.75, which is a premium compared to its industry's Forward P/E of 16.27, and a PEG ratio of 2.28, higher than the industry average of 1.35 [7] Industry Context - The Medical - HMOs industry is part of the Medical sector and currently has a Zacks Industry Rank of 233, placing it in the bottom 6% of over 250 industries [8]