1. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 112
UnitedHealth Group Incorporated (NYSE:UNH) is an American health insurance and healthcare services company. UNH operates under two primary brands: UnitedHealthcare, which provides health insurance, and Optum, which is focused on healthcare services. The company offers a full range of health benefits and serves various kinds of clients, including large employers, small businesses, and individuals. It also serves over 13 million Medicare recipients. UnitedHealth Group Incorporated (NYSE:UNH) is one of the best health insurance stocks to buy.
In November 2024, the company announced that it had expanded its Individual & Family Affordable Care Act (ACA) Marketplace plans coverage to 30 states. This expansion included new coverage areas in Indiana, Iowa, Nebraska, and Wyoming, as well as additional counties in 13 other states. With this increase in coverage area, UnitedHealth Group Incorporated (NYSE:UNH) was providing Individual & Family ACA Marketplace plans in over 1,250 counties across the US.
In addition to growing its business, the company is strategically focused on leveraging artificial intelligence (AI) to enhance its services. UnitedHealth Group Incorporated (NYSE:UNH) is using data and AI tools to help customers find the best value care options that suit them and their families. Additionally, the company is utilizing AI to streamline patient care and enhance overall operational effectiveness.
To stay ahead of the competition, UnitedHealth Group Incorporated (NYSE:UNH) is focused on a key strategy that revolves around value-based care. Wedgewood Partners, an investment management company, noted in its Q3 2024 investor letter that UnitedHealth Group Incorporated’s (NYSE:UNH) value-based care programs are focused more on preventative care and home-based visits for patients. This approach can lead to better health outcomes and also reduce costs for the US healthcare system. The investment management firm noted that UNH has invested in several core assets in order to support this value-based strategy. As the number of people in the US with health insurance coverage continues to reach new highs, this approach could become the standard of care according to Wedgewood Partners.
Overall, UNH ranks first among the 12 best health insurance stocks to buy in 2025. While we acknowledge the potential of health insurance companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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