10 Best Health Insurance Stocks to Buy

1. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 114

UnitedHealth Group Incorporated (NYSE:UNH), based in Minnetonka, Minnesota, is a leading U.S. multinational corporation specializing in managed healthcare and insurance services. The company operates as a for-profit entity and is divided into four key segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx.

Deutsche Bank recently reiterated its Buy rating on UNH, raising the stock’s price target to $632. This upgrade follows UnitedHealth’s report of a 6.4% year-over-year revenue increase, reaching $98.8 billion. Despite facing challenges such as a cyberattack and regulatory changes, the company managed to cut selling, general, and administrative expenses by $650 million compared to the previous year.

As of Q2 2024, 114 investors held optimistic positions in UnitedHealth, with total stakes amounting to $12.54 billion. Fisher Asset Management was the largest shareholder, holding a position valued at $1.57 billion as of June 30.

Invesco Distributors, Inc. commented on UnitedHealth Group Incorporated (NYSE:UNH) in its Q2 2024 investor letter. Here is what it said:

“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.”

While we recognize the potential of UNH as an investment, we believe certain deeply undervalued AI stocks offer greater prospects for higher returns in a shorter period. If you’re seeking an AI stock with even more promise than those on our list and trading at less than 5 times its earnings,  check out our report about the cheapest AI stock.

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