5 Best Medical Stocks to Invest In

2. UnitedHealth Group Incorporated (NYSE: UNH)

Market Cap: $382 billion
Number of Hedge Fund Holders: 89 

UnitedHealth Group Incorporated (NYSE: UNH) is second on our list of the best medical stocks to invest in. It is an American healthcare insurance company that provides medical services to its consumers, along with insurance services. The company currently employees over 330,000 people. 

In Q1 2021, UnitedHealth Group Incorporated (NYSE: UNH) generated a revenue of over $69 billion, up from $64 billion during the same period last year, showing 7.3% growth. The EPS beat the market estimate of $4.38 and stood at $5.31. The UNH stock has also soared by 15% year to date and 41% in the past year. Due to the strong Q1 results, Argus Research raised the price target on the UNH stock to $450 per share and rated the stock as a ‘Buy’. UnitedHealth Group Incorporated (NYSE: UNH) has also announced a quarterly dividend of $1.45, raising the price by 16%. 

At the end of the first quarter, 89 hedge funds tracked by Insider Monkey have stakes in UnitedHealth Group Incorporated (NYSE: UNH), worth over $12 billion. 

Baron Funds, an asset management firm, recently released its Q1 2021 investor letter and mentioned UnitedHealth Group Incorporated (NYSE: UNH) in it. Here is what the firm has to say: 

“Shares of UnitedHealth Group Incorporated reacted positively to more favorable 2021 guidance than previewed at the company’s December 2020 investor day. Medical costs returned to a seasonal baseline, inclusive of COVID-19-related impacts. We consider UnitedHealth a core holding and a way to play positive demographic, population health, and value-based reimbursement trends. Despite its size, we think the company can grow earnings at a mid-teens rate over the long-term.”