11 Best Beginner Stocks To Invest In Now

6. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 112

UnitedHealth Group Incorporated (NYSE:UNH) ranks sixth on our list of best beginner stocks to invest in right now. It is a multinational health insurance and services company based in the United States that operates several subsidiaries including UnitedHealthcare, Optum, Change Healthcare, and United Health Foundation. On the financial front, UnitedHealth Group Incorporated (NYSE:UNH) logged $100.8 billion in revenue, up by nearly $8.5 billion, in the third quarter of 2024. Revenue was primarily driven by growing customers for its Optum and UnitedHealthcare segments. In addition to that, by the end of Q3 2024, customers served by UNH’s commercial domestic offerings grew by nearly 2.4 million, to reach 29.7 million.

The company is notorious for expansion and has started offering its services to more locations over the past few months. In addition to that, as part of its Medicare Advantage Plan for 2025, UnitedHealth Group Incorporated (NYSE:UNH) plans to reduce the cost of healthcare for patients with chronic diseases. On November 1, the company announced that it is expanding its individual and family plans to 30 more states on the Health Insurance Marketplace. The expansion aligns with the company’s mission to offer equitable and affordable healthcare services to people across the United States.

For its 2025 outlook, UnitedHealth Group Incorporated (NYSE:UNH) expects revenues to range between $450 billion and $455 billion, and cash flows from operations are projected to reach $32 billion to $33 billion. Overall, analysts are also bullish on the stock, and their median price target of $635 represents an upside of 8% from current levels.

Mairs & Power Growth Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q3 2024 investor letter:

“One great example of this is UnitedHealth Group Incorporated (NYSE:UNH), a long-term holding of the Fund. Founded in 1974 in Minnetonka, Minnesota, UnitedHealth Group has grown to become the largest managed care organization in the United States. UnitedHealth Group is already working on multiple AI use cases that could potentially save the company billions of dollars in efficiencies over the next several years. For instance, the company’s call centers receive more than a million calls per day. AI could potentially divert or resolve customer concerns without human interaction. We fully admit the company is not perfect and has its ups and downs. Earlier this year, the company was caught up in a large data breach from a company it acquired in 2022. Healthcare is also deeply political, and UnitedHealth Group can often find itself in the political crosshairs during an election year. We’ve seen these political risks play out before and believe UnitedHealth Group will again emerge unscathed.”