UnitedHealth Group (UNH) Outperforms Broader Market: What You Need to Know

Core Viewpoint - UnitedHealth Group's stock has shown resilience with a recent increase, but upcoming earnings are expected to reflect a significant decline in earnings per share year-over-year [1][2]. Financial Performance - UnitedHealth Group closed at $347.75, up 2.75% from the previous trading session, outperforming the S&P 500's gain of 1.16% [1]. - The company is projected to report earnings of $2.09 per share on January 27, 2026, indicating a year-over-year decline of 69.31% [2]. - For the full year, earnings are estimated at $16.3 per share, reflecting a decrease of 41.07%, while revenue is expected to remain flat at $447.7 billion [3]. Analyst Estimates - Recent changes in analyst estimates are crucial for investors, as they often indicate the latest business trends and outlook [3]. - The consensus EPS projection has increased by 0.01% in the past 30 days, and UnitedHealth Group currently holds a Zacks Rank of 3 (Hold) [5]. Valuation Metrics - UnitedHealth Group has a Forward P/E ratio of 19.23, which is higher than the industry average of 15.58, suggesting it is trading at a premium [6]. - The company has a PEG ratio of 2.04, compared to the industry average of 1.04, indicating a higher valuation relative to projected earnings growth [7]. Industry Context - The Medical - HMOs industry, to which UnitedHealth Group belongs, has a Zacks Industry Rank of 215, placing it in the bottom 13% of over 250 industries [7][8].