10 Best Stocks to Buy Now For the Long Term

5. UnitedHealth Group Incorporated (NYSE:UNH)

10-Year Sales Growth: 11.86%

Number of Hedge Fund Holders: 150

UnitedHealth Group Incorporated (NYSE:UNH) is a leading American multinational healthcare company that operates through UnitedHealthcare and Optum segments. The company provides a variety of healthcare services, including data analytics, pharmacy service, and population health management, along with health insurance and benefits to different groups.

In fiscal 2024, UnitedHealth Group Incorporated (NYSE:UNH) reported an 8% year-over-year increase in revenue, reaching a total of $400.3 billion. This growth was driven by comprehensive services across both its business segments, Optum and UnitedHealthcare. Management noted that the number of domestic consumers served by UnitedHealthcare increased by 2.1 million, reflecting the company’s efforts to expand its health benefits offerings and enhance consumer choice. Moreover, the Optum segment also saw a significant increase in value-based care patients, with 600,000 individuals served.

The improved quarterly performance led to a bullish sentiment around the stock. On March 5, J.P. Morgan analyst Lisa Gill maintained a Buy rating on the stock. The company has grown its sales by more than 12% during the last 10 years and is one of the best stocks to buy now for long term.

Parnassus Growth Equity Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q4 2024 investor letter:

“We sold two Health Care positions during the quarter, pharmaceutical company AstraZeneca and insurerUnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth’s business model is becoming higher-risk, which coupled with slowing Medicare Advantage growth and regulatory uncertainty led to us exiting the position.

After the UnitedHealth stock price recovered to its historical multiple in early November, we felt it was an opportune time to sell based on our concerns about slowing Medicare Advantage growth and the company’s growing business complexity and risk.”