We recently published a list of 15 Stocks ChatGPT Predicts Could Make You Wealthy in 10 Years. In this article, we are going to take a look at where UnitedHealth Group Incorporated (NYSE:UNH) stands against other stocks ChatGPT predicts could make you wealthy in 10 years.
2024 was a stellar year for the US markets, driven by a strong performance in the technology sector. The broader market expanded by more than 23% during the year, marking two consecutive years of over 20% growth—something that had not happened in nearly three decades.
READ ALSO: 10 Best Single Digit Stocks To Buy Now and 10 Under-the-Radar Stocks with Massive Upside for 2025.
The stock market benefited from a resilient economy that avoided recession, declining interest rates, and waning inflation. Analysts are projecting continued growth in 2025 amid strong economic data and optimism about a business-friendly Trump administration returning to power.
In a note on December 30, Wedbush Securities analyst, Dan Ives, wrote that he expects a 25% surge in tech stocks as the new government focuses on slashing unnecessary regulations. On the other hand, Todd Rosenbluth, the head of research at VettaFi, anticipates that ETFs specializing in small-caps will make gains as investors broaden their market exposure with interest rates dropping.
While the general outlook for 2025 is encouraging, analysts are also cautious about the potential downsides of the new administration’s promised tariffs. Following his election victory, Trump has vowed to impose steep tariffs on imports from Canada, China, and Mexico, which could increase manufacturers’ costs. Ongoing geopolitical tensions in different parts of the world could also hurt the stock market.
Can ChatGPT predict the stock market?
A growing number of investors are turning to ChatGPT for stock suggestions. According to a 2023 survey, around 53% of the Millenials and 50% of Generation Z respondents had used the AI chatbot for investing advice. In contrast, older Americans were skeptical of the recommendations, with only 25% of the Baby Boomers saying they had used ChatGPT to buy stocks.
While most financial analysts question the reliability of ChatGPT for providing accurate and up-to-date information, Alejandro Lopez-Lira, a finance professor at the University of Florida, says that the chatbot may be able to predict stock movements. He used the platform to parse negative and positive headlines for stocks and predict returns for the following day. Lopez-Lira was surprised to find how good the results were.
Whether or not tools like ChatGPT are effective in recommending stocks and predicting their trajectory remains a debate. However, they can be useful for investors researching the companies they want to invest in or when looking up definitions of financial terms they are unfamiliar with.
Methodology
We prompted ChatGPT to predict 15 stocks that could make investors wealthy in 10 years and cite the reasons behind its analysis. The stocks are ranked in this article in the same order as provided by ChatGPT. The platform said it based its rankings on several factors, including market dominance, revenue and earnings growth, innovation, and industry growth potential.
For perspective, we have also shared the hedge fund sentiment toward each stock, based on Insider Monkey’s database of over 900 prominent hedge funds as of Q3 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A senior healthcare professional giving advice to a patient in a clinic.
UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 112
UnitedHealth Group Incorporated (NYSE:UNH) is an American multinational health insurance company with a mission to enable people to live better and healthier lives. The company offers a range of health benefits designed to make healthcare more accessible and affordable for consumers.
This year, UNH will be expanding its individual and family plans available under the Affordable Care Act (ACA) to 139 new counties in Indiana, Iowa, Nebraska, and Wyoming. It is also expanding its Obamacare footprint in 119 new counties. With the addition of these new coverage areas, the UnitedHealth Group Incorporated (NYSE:UNH) will now have a presence in over 1,250 counties across 30 states.
During fiscal year 2024, it generated a revenue of $400.3 billion, up 8% from last year. Net earnings stood at $14.4 billion for the year, of which over $5.5 billion was contributed through the fourth quarter. Adjusted earnings per share for the year was $27.66, which fell well within the outlook shared by the company for 2024 a year ago. UnitedHealth Group Incorporated (NYSE:UNH) returned $16 billion to shareholders during the year through dividends and share repurchases.
For 2025, the insurance company expects full-year revenue in the range of $450 billion to $455 billion, with adjusted net earnings of $29.50 to $30.00 per share. Cash flow from operations is projected to be between $32 billion and $33 billion. Wall Street analysts are bullish on the stock, with a consensus Strong Buy rating and an average share price upside potential of 19%.
Vulcan Value Partners stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q4 2024 investor letter:
UnitedHealth Group Incorporated (NYSE:UNH), a company that we have owned several times in the past, is the largest health insurer in the United States. UnitedHealth Group also owns Optum, which is a rapidly growing healthcare services company. The environment for the health insurance business remains positive as growth in healthcare spending, driven by chronic diseases and an aging population will continue to outpace overall economic growth. The insurance business benefits from powerful network effects as more members attract more providers and vice versa, which reinforces United’s value proposition and bargaining power with each side of the network. We respect UnitedHealth Group’s management team and have been very pleased with their long-term vision and execution.
Overall, UNH ranks 11th on our list of stocks ChatGPT predicts could make you wealthy in 10 years. While we acknowledge the potential of technology companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
