10 Best Stocks For Beginners With Little Money

4. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders In Q2 2024: 114

UnitedHealth Group Incorporated (NYSE:UNH) is the largest healthcare benefits provider in America as it serves the needs of more than 50 million people. This allows the firm to rely on a sizeable customer base to continue using its products regardless of macroeconomic conditions. Additionally, UnitedHealth Group Incorporated (NYSE:UNH)’s size also means that it can gain an early mover advantage through low costs and a large network of healthcare providers for the markets of new drugs such as GLP-1 weight loss treatments. This is key for UnitedHealth Group Incorporated (NYSE:UNH), and benefits can expand to other drugs such as gene editing treatments for hereditary diseases or revolutionary new cancer treatments. Additionally, UnitedHealth Group Incorporated (NYSE:UNH) also has a sizeable presence in the healthcare services and data analytics industry through its Optum business division, which serves 104 million customers.

UnitedHealth Group Incorporated (NYSE:UNH)’s management believes that the firm can maintain its sizeable customer base in 2025 and beyond. Here’s what they said during the Q2 2025 earnings call:

“We’re also well positioned for growth in 2025. In the selling season to date, the most sophisticated thoughtful buyers of health benefits and services in the US, such as large employers, unions, states, seniors, all continue to choose the offerings of UnitedHealth Group, when they’re looking for managed care, pharmacy services or a Medicare Advantage plan that provides the best value. This consistent growth reflects customers’ recognition of the need for a company like ours. As you know, UnitedHealth Group strives to help reduce the fragmentation and lack of coordination that drives up costs and erodes care outcomes in the $5 trillion US healthcare marketplace. We aim to better coordinate and align incentives among caregivers, payers, and pharmacy, enabling us to focus on the whole patient throughout their health journey.

We believe this increases value for customers and consumers, improves people’s experience and health, reduces redundancies and waste, and ultimately leads to a more sustainable health system. For example, the proven health and economic value to consumers and taxpayers of Medicare Advantage. A recent study by Milliman found that the cost of taxpayers of Medicare Advantage is 4% less than traditional fee-for-service Medicare. At the same time, Medicare Advantage provides seniors well over $2,000 per year in additional value through lower out-of-pocket cost and important services like dental, vision and hearing, none of which fee-for-service Medicare covers. That means a lot to the majority of the people Medicare Advantage serves, who have limited economic resources and otherwise would lack access to such services.”