30 Best Stocks To Invest In According to Billionaires

13. UnitedHealth Group Incorporated (NYSE:UNH)

No. of Billionaire Investors: 23

Total Value of Billionaire Holdings: $8.14 Billion

UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company. It has a strong economic moat, which stems from the cost advantage and network effects. UnitedHealth Group is a for-profit firm with four main segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx.

On February 19, Cantor Fitzgerald analyst Sarah James reaffirmed a price target of $700 on UNH shares, maintaining an Overweight rating on the stock. The analyst sees a significant portion of its business tied to Medicaid, which assisted in generating over $400.28 billion in revenue in FY2024. UnitedHealth Group Incorporated (NYSE:UNH) has expanded Medicaid in 21 states out of the 27 states it operates in. The analyst sees Medicaid to perform well considering its potential market, encouraged by its strong business fundamentals.

Bretton Capital Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“We invest in UnitedHealth Group Incorporated (NYSE:UNH) because we believe this revealed preference is real. The regulatory landscape changes constantly, there is plenty of noise in the system, and it is possible to imagine a world where health insurers would not be necessary. However, the massive healthcare system we’re in today structurally relies on private companies to play the crucial role of managing care and negotiating prices, and we don’t think the US government is prepared to take all that over. It was a bad year for our investment, as the stock returned a negative 2.4%, but it trades for a meaningful discount to the market despite consistently delivering double-digit earnings growth for years, including 10% last year.”