5 Best Recession-Proof Stocks to Buy Now

1. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 116

Lisa Gill at JPMorgan holds an Overweight rating on UnitedHealth Group Incorporated (NYSE:UNH) as of May 30.

UnitedHealth Group Incorporated (NYSE:UNH) is a stellar healthcare company that is also a dividend payer with a yield of 1.35% as of June 7.

There were 116 hedge funds long UnitedHealth Group Incorporated (NYSE:UNH) in the first quarter. Their total stake value was $11.7 billion.

Fred Alger Management, an investment management company, mentioned UnitedHealth Group Incorporated (NYSE:UNH) in its first-quarter 2023 investor letter:

“UnitedHealth Group Incorporated (NYSE:UNH) is an integrated healthcare benefits company uniquely positioned to address rising healthcare costs for its customers, due to its vertical integration, size, and scale. The Optum health benefits services unit, which accounts for approximately 45% of the company’s operating earnings, in our view, has the potential to grow even further as customers look for ways to manage rising healthcare costs. During the period, shares detracted from performance due to several factors: 1) many 2022 healthcare winners with shorter duration profiles and persistent earnings profiles, such as UnitedHealth Group. underperformed in the first quarter of 2023, 2) uncertainty surrounding Medicare Advantage reimbursement levels from the Federal government in 2023, which will be determined later in the year, and 3) increased regulatory scrutiny in the form of potential Medicare Advantage audits across the industry. While these concerns have impacted UnitedHealth in the near-term, we believe company fundamentals remain intact given its large scale business model, competitive advantages, and medium to long- term growth prospects.”

See also 14 Best Stocks To Buy Before A Recession and 13 Best Gold Stocks To Buy For Recession.