HotForex Analysis Team
HotForex
United Health Group Inc (#UnitedHealth ) is the second-largest healthcare company in the world and the most diversified healthcare company in the US; it provides a wide range of healthcare products and services like healthcare coverage and benefits services and also applies technologies to improve access to health and wellbeing services through its 4 subsidiaries – UnitedHealthcare, OptumHealth, OptumInsight, and OptumRX – with over 330,000 employees across the world. Ranked 5th in the Fortune 500 with a market cap of $384.66B, the health care giant is set to release its Q2 2021 earnings report this Thursday (July 15) before the market opens.
#UnitedHealth is expected to post quarterly earnings of $4.40 EPS, down 38.2% y/y, and revenue of $69.55B, up 11.9% y/y, according to Zack’s consensus estimate. Despite this mixed expectation and Zack’s Most Accurate Estimate unchanged at $4.40 EPS, indicating no revisions by analysts, the company has managed to maintain a #2 buy on the Zack ranking. Over the last 4 quarters, #UNH has beaten the consensus Earnings/share every single time, with the latest release beating estimates by 20.14% ($5.31 EPS against $4.42 EPS expected),, which puts focus on the deviation from expectation for the release. Although the unprecedented amount of monetary stimulus and low-interest rates should prove supportive for companies like #UnitedHealth, 22 analysts from Yahoo finance research estimate a buy and strong buy bias on the share price while Trefis values the 44-year-old company at $422, above the current market price.
Technically, #UnitedHealth maintains a bullish trend, having risen almost 16% from 2020 highs to create a fresh ATH around $425; it is currently trading around $416 (above the 20 SMA and 50 SMA). May highs at $418 serve as the immediate resistance level and if broken, the $425 ATH will be the next stop if expectations are beaten by a good variance. Technically, the next key Fibonacci levels the 261.8 (from the January-February decline) and the 161.8 (from the May-June decline) create a new target zone $445-453.
On the other hand, a miss in the numbers could see the share price dip from these high levels – an excuse for profit-taking – towards the 20 SMA and 50.0-38.2 Fib zone at $405-400. Below here is the June low at $385, the April low at $360, and the 2021 low from February at $320.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.