Billionaire Ken Fisher’s 10 Healthcare Stock Picks with Massive Upside Potential

4. UnitedHealth Group Incorporated (NYSE:UNH)

Upside Potential: 45.83%

Number of Hedge Fund Holders: 150

UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx are the four main business sectors of UnitedHealth Group Incorporated (NYSE:UNH), which is headquartered in Eden Prairie, Minnesota. The company offers a wide range of pharmaceutical care services, healthcare services, data analytics, and health benefit plans, both domestically and abroad.

Due to unforeseen difficulties in its Medicare Advantage (MA) businesses, UnitedHealth Group Incorporated (NYSE:UNH) updated its full-year adjusted EPS outlook to $26–$26.50 per share in the first quarter of 2025, which concluded on March 31. UnitedHealthcare’s MA margins suffered as care activity increased twice as quickly as first predicted, particularly in physician and outpatient services. A more complicated patient mix and lower-than-expected reimbursement for new patients from insurance, leaving specific areas, caused Optum Health to face a revenue shortfall at the same time. Although implementing the new CMS risk adjustment model has been challenging, the company is making efforts to enhance clinician involvement and streamline processes for more precise evaluations.

Notwithstanding these obstacles, UnitedHealth Group Incorporated (NYSE:UNH) maintained its $450–$455 billion consolidated revenue forecast for 2025, bolstered by better-than-expected results from Optum Rx and UnitedHealthcare. With a 3% rise in scripts as a result of new customer acquisitions and excellent retention, Optum Rx’s sales increased 14% year over year to surpass $35 billion.

In 2025, Optum Health anticipates adding 650,000 more patients to value-based care models, and UnitedHealth Group Incorporated (NYSE:UNH) is on track to serve an additional 800,000 Medicare Advantage members. Strong momentum in the Medicaid and commercial areas, supported by expanded services and state partnerships, was also recognized by the firm.

UnitedHealth Group Incorporated (NYSE:UNH) is committed to reaching its long-term EPS growth goal of 13%–16%, with a focus on digital engagement, operational efficiency, and technology-driven care delivery. Both income and growth-oriented investors should continue to keep an eye on UnitedHealth Group, which holds a significant position in Ken Fisher’s stock portfolio, valued at $1.7 billion.