11 Best Safe Stocks to Buy According to Hedge Funds

8. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge funds holding: 150

Forward Dividend: $8.40

UnitedHealth Group Incorporated (NYSE:UNH) is a leading healthcare and well-being company that offers healthcare coverage, software, and data consultancy services. With four main segments: UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx, the company serves a wide customer base, including patients, care providers, employers, and government entities. Headquartered in Hopkins, Minnesota, the giant is committed to improving healthcare systems.

If there were an award for best-in-class management, UnitedHealth Group Incorporated (NYSE:UNH) would be the clear winner. Better operating margins, improved returns, and no material EPS projection misses can be credited to the leadership. Amid the market chaos, the company is strategically repositioning itself for what’s yet to come, emphasizing fundamental industry change in the long haul.

UnitedHealth Group Incorporated (NYSE:UNH) is considered a market leader in the healthcare sector, an industry that is bound to perform well even during recessions. While this stability and resilience of the sector is a bullish thesis in itself, the high-growth potential from Optum can’t be overlooked. In its latest earnings report, the company revealed plans to serve an additional 800,000 people this year through its Medicare Advantage business and add 650,000 net new patients via the Optum Health segment. This reinforces the case that UnitedHealth Group Incorporated (NYSE:UNH) targets a niche market by leveraging AI and other technologies.

“Looking ahead, we see a long runway for further technology advances that will translate to more and sustained operating efficiency, which in turn drives opportunity for further innovation and advancements in the company and across the industry,” stated John Rex, the Chief Financial Officer.

According to analysts, UnitedHealth Group Incorporated (NYSE:UNH) is anticipated to witness an upside of around 37% over the year. This can not only be attributed to the sector it’s operating in, but also to the company itself. Thus, for investors valuing reliability and growth, UNH is just the right stock.