10 Best Medical Stocks to Buy Now

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 focused on managed healthcare and insurance, operating through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx.

Deutsche Bank reiterated its Buy rating on UNH, raising the price target to $632. This follows UnitedHealth’s 6.4% revenue growth to $98.8 billion, despite challenges like a cyberattack and regulatory changes. The company also reduced expenses by $650 million year-over-year.

The Q2 2024 investor letter from Invesco Distributors, Inc. had a comment on UnitedHealth Group Incorporated (NYSE:UNH). This is what it stated:

“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.”

Analysts are also bullish on UNH giving it a Strong Buy rating. 21 analysts set a 12-month average price target of $625.39 for UnitedHealth, with estimates ranging from $591.00 to $680.00, indicating a potential 8.76% rise from the current price of $575.00.

“Overall, UNH  ranks first among the best medical stocks to buy. While we acknowledge the potential of medical companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.”

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