UnitedHealth Slides 2.6%, Q1 EPS Forecast Declines 6.1%
UnitedHealth shares fell 2.64%, underperforming the S&P 500’s 1.04% decline and down 18.6% over the past month versus a 0.7% sector gain. Analysts forecast Q1 EPS of $6.76 (−6.11%) on $110.6bn revenue (+0.9%) and annual EPS of $17.69 (+8.2%), with a forward P/E of 16.4, PEG 1.33 and Zacks Rank #3.
1. Stock Performance
UnitedHealth shares dropped 2.64% in the latest session, underperforming the S&P 500’s 1.04% loss while the Dow and Nasdaq fell 1.66% and 1.13% respectively. Over the past month, the stock is down 18.6%, lagging the medical sector’s 0.7% gain and the S&P 500’s 1.75% rise.
2. Earnings Projections
First-quarter EPS are projected at $6.76, a 6.11% year-over-year decline, on net sales of $110.58 billion, up 0.91%. Full-year earnings estimates stand at $17.69 per share (up 8.2%) on revenue of $440.43 billion (down 1.59%).
3. Valuation and Rankings
The stock trades at a forward P/E of 16.4, in line with the industry average, and carries a PEG ratio of 1.33 versus the industry norm of 0.97. It holds a Zacks Rank of #3, indicating a neutral outlook based on recent estimate revisions.
4. Industry Context
UnitedHealth is part of the Medical – HMOs industry, which ranks in the bottom 9% of over 250 industries, reflecting broader challenges within managed care relative to the overall market.