1. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 110
UnitedHealth Group Incorporated (NYSE:UNH) was incorporated in 1977 and is based in Minnetonka, Minnesota. It operates as a diversified health care company in the United States. UnitedHealth Group Incorporated (NYSE:UNH)’s full year 2022 revenues grew 13% year-over-year to $324.16 billion with double digit growth at both Optum and UnitedHealthcare, supported mainly by serving more people. The adjusted EPS for the fourth quarter of the year grew by 19.2% compared to the same period last year, reaching $5.34. Meanwhile, the GAAP EPS increased by 18.08% year-over-year to $5.03. It is one of the best counter cyclical stocks to watch.
On January 24, Deutsche Bank analyst George Hill raised the firm’s price target on UnitedHealth Group Incorporated (NYSE:UNH) to $617 from $615 and maintained a Buy rating on the shares following the Q4 results. Despite uncertainties related to policy changes in Medicare and Medicaid, as well as economic pressure in the commercial sector, the analyst believes that UnitedHealth Group Incorporated (NYSE:UNH) is cautious in its guidance and has various strategies to deliver better-than-expected results.
According to Insider Monkey’s fourth quarter database, 110 hedge funds were bullish on UnitedHealth Group Incorporated (NYSE:UNH), and Boykin Curry’s Eagle Capital Management is a prominent stakeholder of the company, with 2.18 million shares worth $1.15 billion.
Sequoia Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its Q4 2022 investor letter:
“UnitedHealth Group Incorporated (NYSE:UNH) was among Sequoia’s best performing stocks this year, thanks to typically strong financial results and increased appreciation for the business’ relative insensitivity to the broader economy. For the full year 2022, United’s revenues and EPS are expected to be up approximately 13% and 17%, respectively. Versus 2019, the company’s revenues and EPS are expected to have compounded at annual rates of approximately 10% and 14%, respectively.
UnitedHealth Group may not be a particularly beloved company, but it is one of the more entrenched businesses we’ve come across. Managed care, in its various forms-commercial risk, commercial fee, Medicare Advantage, and managed Medicaid- is an utterly essential component of our healthcare system. And in managed care, no one is bigger, more diversified or better run than United. In addition to its managed care business, United owns and operates the country’s third largest pharmacy benefit manger and is also the single largest owner by a wide margin of non-hospital care assets, including physician practices, urgent care centers, and ambulatory surgical centers…” (Click here to read the full text)
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