5 Safe Stocks to Buy According to Hedge Funds

1. UnitedHealth Group Incorporated (NYSE:UNH)

Beta Value: 0.73
Number of Hedge Fund Holders: 110

The Minnesota-based UnitedHealth Group Incorporated (NYSE:UNH) is the world’s largest healthcare firm by revenue and the largest insurance company by net premiums. It specializes in both individual and group health insurance. On January 17, Joseph France an analyst at Loop Capital reiterated a ‘Buy’ rating on UnitedHealth Group Incorporated (NYSE:UNH)’s stock while increasing his price objective from $575 to $590. The analyst justified the target increase by pointing to the company’s “strong” Q4 performance and 2023 forecast.

UnitedHealth Group Incorporated (NYSE:UNH) stock has risen 2.97% over the past 12 months, exceeding the S&P 500 index, which has fallen 13.32% in the same period. Additionally, the business has been increasing EPS at a pace of over 13.7% annually. Over the next five years, analysts predict an average annual profits increase of 14.2%. In addition, the firm has gradually raised dividends for years, and it currently pays a dividend yield of 1.39%.

Hedge funds are loading up on UnitedHealth Group Incorporated (NYSE:UNH), as Insider Monkey’s data shows that 110 hedge funds held a stake in the company as of the end of the third quarter of 2022, compared to 91 funds at the end of the previous quarter.

Here is what Stewart Asset Management has to say about UnitedHealth Group Incorporated (NYSE:UNH) in its Q3 2022 investor letter:

“Looking at the Great Recession which began at year-end 2007 and lasted to mid-year 2009 is helpful too. Our four largest current holdings in the portfolio weathered that period well. UnitedHealth’s (NYSE:UNH) earnings were resilient. While it reported modestly down earnings in 2008, its earnings rebounded quickly to record highs in 2010 and the shares responded strongly in anticipation of this.”

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