Positional trading view US Health Insurance giant UnitedHealth Group:
UnitedHealth Group (UNH – Free Report) closed the most recent trading day at $307.23, moving -0.43% from the previous trading session. Shares of the largest U.S. health insurer had lost 3.73% over the past month.
This has lagged the Medical sector’s of 0% and the S&P 500’s gain of 0.49% in that time. UNH will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.98, down 23.2% from the prior-year quarter.
Our most recent consensus estimate is calling for quarterly revenue of $63.73 billion, up 5.61% from the year-ago period. Looking at the full year, As street is expecting earnings of $16.58 per share and revenue of $255.06 billion. These totals would mark changes of +9.73% and +5.33%, respectively, from last year.
These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
In terms of valuation, UNH is currently trading at a Forward P/E ratio of 18.61. Its industry sports an average Forward P/E of 15.17, so we one might conclude that UNH is trading at a premium comparatively.
We can also see that UNH currently has a PEG ratio of 1.47. 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. UNH’s industry had an average PEG ratio of 1.47 as of yesterday’s close.
We advise start accumulating around current levels $287-$300 for the target of $340 and if it gives weekly closing above $317 then we can look for the targets around $380-$400 in six to seven months. This view will be invalid if it closes below $261 on weekly basis.