12 Best Stocks to Buy in 2025 for Beginners

5. UnitedHealth Group Incorporated (NYSE:UNH)

10-year Revenue CAGR: 11.86%

Number of Hedge Fund Holders: 112

UnitedHealth Group Incorporated (NYSE:UNH) provides healthcare coverage, data consultancy, and software services. It operates through the OptumRx, OptumInsight, OptumHealth, and UnitedHealthCare segments, which have solid operations. UnitedHealthCare, its insurance division, added millions of customers during fiscal 2024 and is continuing to expand its operations. Its OptumHealth division grew revenues to around $105 billion in fiscal 2024 and is expected to touch $117 billion in fiscal 2025.

The company’s value proposition is resonating with consumers and provider partners, state customers, and undertaking expansion proposals. It is focusing on providing consumer stability and sustainable value, and anticipates growth of up to 800,000 people in individual, group and special needs offerings.

UnitedHealth Group Incorporated (NYSE:UNH) employed around $17 billion in growth capital in fiscal 2024 to strengthen its capabilities, and returned over $16 billion to shareholders through share repurchases and dividends. It expects cash flow from operations to reach $33 billion in fiscal 2025, or 1.2 times net income.

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.”