Looking for stocks that might be well positioned to keep up with continuous earnings updates in upcoming reports? Zacks Medical – UnitedHealth Group (UNH), which belongs to the HMOs industry, is worth considering.
The US’s largest health insurer has a track record of exceeding expectations, especially in its last two reports. The company boasts an average surprise rate of his 6.27% over the past two quarters.
For its last reported quarter, UnitedHealth earned $5.79 per share. In comparison, the Zacks Consensus estimate of $5.45 per share represents a surprise of 6.24%. In the previous quarter, the company was expected to post earnings of $5.24 per share for him, but he actually made earnings of $5.57 per share, a surprise 6.30%.
Price and EPS Surprise
UnitedHealth’s forecasts are on an upward trend, partly thanks to this history of unpredictable results. And looking at the stock’s positive Zacks Earnings ESP (Expected Surprise Prediction), it’s a great indicator of future earnings growth, especially when combined with its solid Zacks Rank.
According to our research, stocks with a combination of positive Earnings ESP and Zacks Rank 3 (Hold) or higher deliver a positive surprise almost 70% of the time. In other words, if there are 10 stocks in this combination, there could be as many as 7 stocks above the consensus estimate.
Zacks Earnings ESP compares the most accurate estimate to the quarterly Zacks Consensus estimate. The Most Accurate Estimate is a version of the Zacks Consensus, whose definitions are subject to change. The idea here is that analysts who revise their estimates just before the earnings release have the most up-to-date information. This may be more accurate than previously predicted by analysts and others contributing to the consensus.
UnitedHealth’s current earnings ESP is +0.28%, suggesting analysts are bullish about near-term earnings potential. Combine this positive earnings ESP with a Zacks ranked #3 (hold) and you know another beat could be just around the corner. The company’s next earnings report is expected to be released on January 13, 2023.
If the Earnings ESP turns negative, investors should be aware that this reduces the predictive power of the indicator. However, a negative value does not indicate a loss of earnings for the stock.
Many companies ended up beating consensus EPS estimates, but that’s not the only reason stocks are rising. Additionally, some stocks may remain stable even if they end up below consensus expectations.
For this reason, it is very important to review your company’s revenue ESP prior to each quarterly release to increase your chances of success. Use the Earnings ESP Filter to find the best stocks to buy or sell before they’re reported.
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UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
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