12 Best Forever Stocks To Buy Now

7. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Funds Holding Stakes as of Q2: 114

Market Cap as of September 18, 2024: $533.70 Billion

UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company that offers consumer-oriented health benefit plans and services. It also provides care delivery, care management, wellness and consumer engagement, and health financial services to patients. It also offers pharmacy care services and programs.

With the stock trading near all-time highs, UnitedHealth Group Incorporated (NYSE:UNH) is a leading player in the healthcare sector owing to its diversified insurance and care delivery services portfolio. The company has consistently delivered solid financial results even when the broader market faces headwinds. It also benefits from continued innovation in expanding its footprint in the healthcare sector.

In the recent quarter, revenues totaled $98.9 billion, marking a 6% rise compared to the same period last year. A significant portion of this growth was attributed to the company’s extensive Optus healthcare services division, which accounts for most of its income. The company’s revenue growth remains strong, with a 10.59% increase over the last twelve months.

UnitedHealth Group Incorporated (NYSE:UNH) reported net income of over $6.3 billion, or $6.80 per share. This figure surpassed the $5.8 billion earnings from the same quarter the previous year. While the stock trades at a P/E ratio of 37.78, it reflects a premium valuation compared to the industry average, suggesting high investor expectations for future earnings growth.

By the end of Q2 2024, 114 investors were optimistic about the stock, with total stakes amounting to $12.54 billion. As of June 30, Fisher Asset Management held the largest position, valued at $1.57 billion.

Invesco Distributors, Inc. commented on UnitedHealth Group Incorporated (NYSE:UNH) in its Q2 2024 investor letter. Here is what it said:

“UnitedHealth Group Incorporated (NYSE:UNH): Like many managed care providers, United Health has come under pressure from rising medical costs and higher-than-expected utilization. The stock is currently undervalued based on our analysis. We view the company as a high-quality compounder with secular growth opportunities in the managed care segment. The US Presidential election may cause additional near-term uncertainty, but we believe United Health will be able to rebound once pricing and utilization issues normalize.”