12 Best Dow Stocks to Buy Right Now

7. UnitedHealth Group Incorporated (NYSE:UNH)

No. of Hedge Fund Holders: 112

UnitedHealth Group Incorporated (NYSE:UNH) is one of the largest health insurance companies in the world. The company provides a wide range of health insurance-related services to its consumers. Over the past months, UnitedHealth has expanded its services to several new locations. Moreover, the company intends to reduce the cost of healthcare for consumers as part of its Medicare Advantage Plan for 2025.

On January 21, TD Cowen’s analyst Ryan Langston, maintained a Buy rating on UnitedHealth Group Incorporated (NYSE:UNH) and set a price target of $609, presenting an upside of 83% from the current price level. Langston is bullish on UNH and believes that the company’s ability exceeds market expectations and exhibits solid financial results. The analyst pointed out that the health insurer logged a better-than-consensus medical loss ratio, explaining the reason behind its noteworthy guidance for 2025. Langston remains optimistic about UNH’s strategic initiatives and pricing strategies which are anticipated to drive growth in FY2025.

In FY24, the company’s earnings and revenue surpassed estimates. UnitedHealth Group Incorporated posted revenue of $400 billion, an increase of 8% year-over-year. The company’s earnings from operations in 2024 amounted to $32.3 billion. The company’s Optum Health is expected to serve more than 5.4 million value-based care patients in 2025, indicating a growth of 650,000 over 2024.

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.”