1. UnitedHealth Group Incorporated (NYSE:UNH)
1-year Revenue Growth Rate: 12.96%
3-year Revenue Growth Rate: 13.01%
5-year Revenue Growth Rate: 10.40%
Number of Hedge Fund Holders: 113
UnitedHealth Group Incorporated (NYSE:UNH) is one of the few major players in the health insurance market. The stock tops our list of the best stocks that will always grow and its revenue increased by 10.40% over the last five years.
On April 16, UnitedHealth Group Incorporated (NYSE:UNH) announced first-quarter earnings. The non-GAAP EPS reported was $6.91, which surpassed the estimates by $0.29. The revenue surged 8.6% year-over-year to $99.79 billion and beat the estimates by $490 million.
According to our database, 113 hedge funds held stakes in UnitedHealth Group Incorporated (NYSE:UNH) with positions worth $11.12 billion in the fourth quarter of 2023. GQG Partners is the biggest shareholder of the company, as of December 31, 2023, and has a position worth $1.8 billion.
Baron Funds stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its first quarter 2024 investor letter:
“UnitedHealth Group Incorporated (NYSE:UNH) is a leading health insurance company that operates across four segments: United Healthcare, Optum Health, OptumInsight, and OptumRX. Shares fell alongside other managed care organizations (MCOs) due to patient utilization of Medicare Advantage (MA) that was higher than consensus forecasts, raising concerns that MCOs had mispriced 2024 bids and could suffer margin compression as a result. In addition, the industry is facing headwinds from MA reimbursement cuts and Star Rating changes. While management said higher cost trends are mostly transitory and reflected in its bidding, and 2024 guidance was roughly in line with consensus, investors took a more cautious wait-and-see approach. We believe UnitedHealth should remain a core portfolio holding, as it is a way to play positive demographic, population health, and value-based reimbursement trends. Despite its size, we think the company should be able to grow earnings consistent with its 13% to 16% long-term EPS annual target, the fastest among major MCOs.”
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Should you invest $1,000 in UnitedHealth Group Incorporated (NYSE:UNH) right now?
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