10 Best Fortune 500 Stocks To Buy Now

6. UnitedHealth Group Inc. (NYSE:UNH)

Market Capitalization as of September 14: $549.46 billion

Number of Hedge Fund Holders: 114

UnitedHealth Group Inc. (NYSE:UNH) is a multinational health insurance and services company that provides health insurance plans, healthcare services, and technology solutions. It’s one of the largest health insurers in the US, offering individual, employer-sponsored, and government-sponsored health plans.

It provides health coverage to over 50 million people in the US. The company prioritizes community service, with its professionals making over 2 million home visits in the past year to identify unrecognized health emergencies in patients.

Revenue in Q2 2024 was $98.86 billion, up 6.41% year-over-year, driven by its Optum and UnitedHealthcare business segments. The total US customer base grew by 2.3 million to reach 29.6 million individuals. Optum, the global healthcare services division that uses data to enhance care quality, lower costs, and optimize performance, reported revenues of $62.9 billion, representing a $6 billion increase year-over-year. The earnings per share were $6.80.

The company leverages its size to gain an early mover advantage in new drug markets, such as GLP-1 weight loss treatments, benefiting from low costs and a vast network of healthcare providers. This advantage can extend to other innovative therapies, including gene editing for hereditary diseases and advanced cancer treatments.

114 hedge funds are long UNH, with the biggest stake at $1,573,649,573 by Fisher Asset Management. UnitedHealth Group Inc. (NYSE:UNH) has demonstrated strong performance even in challenging economic conditions and is well positioned to capitalize on the growing demand for health insurance, coming from the expected increase in population in the upcoming years.

Invesco Growth and Income Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q2 2024 investor letter:

“UnitedHealth Group Incorporated (NYSE:UNH): Like many managed care providers, United Health has come under pressure from rising medical costs and higher-than-expected utilization. The stock is currently undervalued based on our analysis. We view the company as a high-quality compounder with secular growth opportunities in the managed care segment. The US Presidential election may cause additional near-term uncertainty, but we believe United Health will be able to rebound once pricing and utilization issues normalize.”