10 Best Telehealth Stocks to Buy Now

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1. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 150

UnitedHealth Group Incorporated (NYSE:UNH) provides healthcare coverage, data consultancy, and software services. It operates through the OptumRx, OptumInsight, OptumHealth, and UnitedHealthCare segments, which have solid operations. UnitedHealthCare, its insurance division, added millions of customers during fiscal 2024 and is continuing to expand its operations. It offers members options for telehealth visits, with either local providers or through its preferred national providers.

In a report released on April 17, Andrew Mok, CFA, from Barclays, maintained a Buy rating on UnitedHealth Group Incorporated (NYSE:UNH) and set a $560.00 price target.

The company reported strong fiscal Q1 2025 results, with revenue reaching $109.6 billion and undergoing a $9.8 billion year-over-year increase. Earnings from operations touched $9.1 billion, and net margin improved to 5.7%. Its UnitedHealthcare segment reported $84.6 billion in revenue, attributed to an increase in consumers served. Optum’s revenue also increased to $63.9 billion, supported by growth in Optum Rx. UnitedHealth Group Incorporated (NYSE:UNH) returned nearly $5 billion to shareholders through dividends and share repurchases.

Vulcan Value Partners stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q4 2024 investor letter:

“UnitedHealth Group Incorporated (NYSE:UNH), a company that we have owned several times in the past, is the largest health insurer in the United States. UnitedHealth Group also owns Optum, which is a rapidly growing healthcare services company. The environment for the health insurance business remains positive as growth in healthcare spending, driven by chronic diseases and an aging population, will continue to outpace overall economic growth. The insurance business benefits from powerful network effects as more members attract more providers and vice versa, which reinforces United’s value proposition and bargaining power with each side of the network. We respect UnitedHealth Group’s management team and have been very pleased with their long-term vision and execution.”

Overall, UNH ranks first among the 10 best telehealth stocks to buy now. While we acknowledge the potential of telehealth stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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