BRAZIL – 2021/04/18: In this photo illustration the UnitedHealth Group (UHG) logo seen displayed on … [+]
United Health Group is scheduled to report earnings before Friday’s open. The stock hit a record high of $553.29/share in 2022 and is currently trading near $498/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview:
The company is expected to report a gain of $5.45/share on $80.52 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $5.54/share. The Whisper number is the Street’s unofficial view on earnings.
Charts & Data Courtesy MarketSmith Inc
A Closer Look At The Fundamentals:
The company’s earnings have been growing over the past few quarters which is a good sign, especially in this weak environment. Revenue (a.k.a. sales) has also grown steadily over the past few quarters which is a welcomed sign. So far, the company has navigated the first half of 2022 with grace.
A Closer Look At The Technicals:
Technically, the stock is acting very well, especially considering how weak the broader market is performing. The stock is “only” 10% below its record high which is much better than most of its peers and the major indices. For now, the bulls want to see the stock get back above the 50 day moving average line and the bears want to see it roll over and make new lows. If the stock gaps up tomorrow after reporting earnings that will be a bullish and if it gaps down that will be a bearish sign.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
