10 Stocks to Watch as Trade Wars Begin

3. UnitedHealth Group Inc (NYSE:UNH)

Number of Hedge Fund Investors: 112

Jim Cramer in a recent program on CNBC recommended UnitedHealth Group Inc (NYSE:UNH) among the names to own to protect from tariff-related uncertainties.

“Health insurers—these hated companies are perfect for this new market. Again, do not mess with what’s going to work. Just go buy the best, and that is United Health. It has great systems and tremendous tech. I also like Signa but not as much as UNH. Got my permission to dislike these companies as much as you want as long as you own them.”

UNH shares plunged after the company reported results that missed Wall Street estimates and decreased its guidance at the midpoint amid higher care activity. However, the bulls believe it’s a buying opportunity. The long-term drivers for the stock and balance sheet of the company remain strong. Due to the recent pullback, the stock’s forward P/E ratio is now the sector average of roughly 16. Another key measure is the FWD P/CF, which is nearly 25% lower than the sector average.

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.”