In this article, we discuss the 5 best blue-chip stocks to invest in. If you want to read our detailed analysis of these companies, go directly to the 15 Best Blue Chip Stocks to Invest In.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind, let’s take a look at the best blue chip stocks to invest in:
5. UnitedHealth Group Incorporated (NYSE: UNH)
Number of Hedge Fund Holders: 105
UnitedHealth Group Incorporated (NYSE: UNH) is a healthcare company based in Minnesota that ranks 5th on the list of 15 best blue-chip stocks to invest in. UnitedHealth Group Incorporated (NYSE: UNH) offers health benefit plans, health care services, and pharmacy care services.
On July 20, UnitedHealth Group Incorporated (NYSE: UNH) announced its strategic partnership with New York-based interactive fitness platform Peloton Interactive, Inc. (NASDAQ: PTON). UnitedHealth Group Incorporated (NYSE: UNH) will begin providing free access to Peloton Interactive, Inc.’s fitness programs to 4 million fully insured commercial members on September 1st. UnitedHealth Group Incorporated (NYSE: UNH) had its stock rise 1.5% last month.
Following the strong Q2 earnings report, Stephens analyst Scott Fidel maintained an Overweight rating on UnitedHealth Group Incorporated (NYSE: UNH) and increased its price target to $460 per share from $440 previously.
The company has a market cap of $394 billion. In the second quarter of 2021, UnitedHealth Group Incorporated (NYSE: UNH) reported an EPS of $4.70, beating estimates by $0.24. The company’s second-quarter revenue came in at $71.3 billion, an increase of 15% year over year, and beat revenue estimates by $1.77 billion.
UnitedHealth Group Incorporated (NYSE: UNH) currently pays its shareholders an annualized dividend of $5.80 per share and offers a dividend yield of 1.39%.
At the end of the second quarter of 2021, 105 hedge funds in the database of Insider Monkey held stakes worth $13.1 billion in UnitedHealth Group Incorporated (NYSE: UNH), up from 89 in the preceding quarter worth $12.1 billion.
In its Q2 2021 investor letter, ClearBridge Investments mentioned UnitedHealth Group Incorporated (NYSE: UNH) and discussed its stance on the firm. Here is what the fund said:
“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience, and consistency for the Strategy. We think these companies should comprise just under half of portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.
UnitedHealth Group, a name we have owned in the Strategy since 1992, is a good example of a long-term compounder, having grown its revenue base from approximately $600 million to north of $260 billion over that time frame. It remains constantly focused on investing in new growth drivers such as telemedicine and health care analytics. Broadcom and Comcast have delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”
