Health insurer UnitedHealth (UNH) is in the spotlight as it prepares to report Q3 earnings tomorrow, October 28. Currently, analysts expect Q3 earnings to fall 61% to $2.82 per share due to higher medical costs and margin pressures. However, the company’s revenue is expected to rise by about 12% year-over-year to $113.04 billion. Ahead of the earnings release, technical indicators suggest that UNH stock is a Buy, which implies further upside from current levels.
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Analyzing UnitedHealth Stock’s Technical Indicators
According to TipRanks’ easy-to-understand technical analysis tool, UNH stock is currently on an upward trend. The Moving Average Convergence Divergence (MACD) indicator, which helps understand momentum and potential price changes, signals a Buy.
Further, the stock’s 50-day Exponential Moving Average (EMA) is 340.77, while its price is $364.86, implying a bullish signal. Also, its shorter-duration EMA (20-days) signals an uptrend.
Moreover, the Rate of Change (ROC) is a momentum-based technical indicator. It measures the percentage change in a stock’s price between the current price and the price from a specific number of periods ago. Typically, a ROC above zero confirms an uptrend. UnitedHealth stock currently has an ROC of 1.04, which signals a Buy.
Another technical indicator, Williams %R, helps traders see if a stock is overbought or oversold. For UNH, Williams %R currently shows a Buy signal, suggesting the stock is not overbought and has room to run.
Is UNH a Good Buy Right Now?
Turning to Wall Street, UNH stock has a Moderate Buy consensus rating based on 18 Buys, two Holds, and two Sells assigned in the last three months. At $361.34, the average UnitedHealth stock price target implies a 1.27% downside risk.
