10 Best Low Risk Stocks To Buy in 2025

2. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 150

Equity Beta: 0.67x

UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company operating through two main segments: UnitedHealthcare, which provides health insurance and benefits, and Optum, which offers healthcare services, technology, and pharmacy benefits management. It serves individuals, employers, and government programs, including Medicare and Medicaid, in the US and international markets. Optum leverages data analytics, telehealth, and value-based care to improve healthcare delivery and cost efficiency. UNH focuses on expanding digital health solutions, integrating care services, and enhancing affordability while navigating regulatory frameworks. Its strategy emphasizes innovation, operational efficiency, and long-term healthcare system improvements.

UnitedHealth Group Incorporated (NYSE:UNH) delivered 2024 revenues of over $400 billion and adjusted earnings per share of $27.66, well within their initially projected outlook ranges. The company navigated significant challenges in 2024, including the first year of CMS Medicare rate cuts, Medicaid member redeterminations, and the Change Healthcare cyberattack. For 2025, the company expects to serve an additional 1.9 million people across commercial and public sectors, with revenues approaching $340 billion. In Medicare Advantage, UNH expects growth of up to 800,000 people in individual, group and special needs offerings, with strong AEP results including near record retention levels. The company is making significant strides in digital transformation, with UHC mobile app visits up 66% YoY and app registrations increasing nearly 100%.

On the operational efficiency front, the operating cost ratio of UnitedHealth Group Incorporated (NYSE:UNH) improved about 150 basis points over the prior year, driven by business portfolio initiatives and accelerated operating efficiencies. Looking ahead, UNH remains committed to its long-term 13% to 16% growth objective, reflecting both the opportunities and capabilities of the organization. The company expects cash flow from operations to approach $33 billion, or 1.2x net income in 2025, demonstrating strong financial capacity. With strong long-term guidance in place and an equity beta of only 0.67x, UNH is one of the best low risk stocks to buy in 2025.