We recently published a list of Jim Cramer Says These 10 Stocks Will Go Higher in Trump Presidency. In this article, we are going to take a look at where UnitedHealth Group Inc (NYSE:UNH) stands against other stocks that will go higher in Trump presidency according to Jim Cramer.
In a recent program, Jim Cramer celebrated the market’s rally on Donald Trump’s election victory, saying the market likes Trump.
“The market likes Donald J. Trump, and it loves a peaceful transition to the next president. We got both, and we had a monster celebration. It was a full jailbreak, and the bears never knew what trampled them. Now, though, with the inclusion of this amazing session, we have to ask: have you missed the Trump rally?”
Cramer said the answer to the question of whether you missed the Trump rally lies in the stock you have in your mind. He said many were expecting a contested election and there was a lot of uncertainty around transition. However, that did not happen and that was in itself a win for the market.
“Trump wants to cut taxes—all taxes—including corporate taxes. Some numbers go higher, estimates go higher, earnings-per-share go higher. You do need to see interest rates go low for things to really work. Someday this is going to matter. It’s hard to keep doing this and piling on debt. But party on until we see damage; that’s what it felt like to me, seems to be the mantra.”
Cramer said the market is still “oversold” as many Trump stocks underwent a massive selloff after Kamala Harris reportedly started to gain ground. However, Cramer said the polls were again proved wrong.
Cramer then talked about the stocks that investors can buy to ride the Trump rally.
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For this article we watched the latest programs of Cramer and picked stocks he believes can go higher under the Trump presidency. With each company, we have mentioned the number of hedge fund investors. 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 Inc (NYSE:UNH)
Number of Hedge Fund Investors: 114
Jim Cramer is bullish on the health insurance sector after the Trump victory in the election and said he likes UnitedHealth Group Inc (NYSE:UNH).
“Health insurers deserve to run, every one of them. I think the Republicans now have enough votes to get rid of whatever the health insurance deemed to be onerous about Obamacare. Huge win. I like United Health because it always does well anyway.”
UnitedHealth Group Inc (NYSE:UNH) is one of the biggest managed healthcare players globally, with segments like UnitedHealthcare, OptumRx, OptumInsight, and OptumHealth. Analysts believe UNH has strong growth catalysts for 2025 because it may be able to raise prices. BofA expects the company’s EPS to approach $28 this year, with steady growth in the low double digits through 2026. Revenue growth is expected by Wall Street in the range of 7% to 8% annually. While dividends are forecasted to rise by more than 10% each year through 2026, the yield may remain under 2%, and its trailing 12-month free cash flow yield is modest at around 1%. Based on these factors, UnitedHealth Group Inc (NYSE:UNH) forward P/E of 20 looks attractive.
Baron Health Care Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q3 2024 investor letter:
“UnitedHealth Group Incorporated (NYSE:UNH) is a leading health and well-being company that operates across four segments: UnitedHealthcare, Optum Health, OptumInsight, and OptumRX. Despite complex Q2 results that involved multiple adjustments and an elevated medical loss ratio that management attributed to a cyberattack on its Change Healthcare platform, shares increased on positive management comments and reaffirmation of adjusted EPS guidance for 2024. We believe UnitedHealth should continue to see strong growth and profitability, driven by positive demographic trends and its ability to manage costs by leveraging its size and scale, continuing its industry-leading technology investments, expanding its expertise in population health, and growing its portfolio of providers.”
Overall, UNH ranks 3rd on our list of stocks that will go higher in Trump presidency according to Jim Cramer. While we acknowledge the potential of UNH, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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.