Jim Cramer’s 5 Favorite Healthcare Stock Picks in 2024

1. UnitedHealth Group Inc (NYSE:UNH)

Number of Hedge Fund Investors: 113

Earlier this month, Cramer talked about the reasons why some stocks in the Dow were declining and UnitedHealth Group Inc (NYSE:UNH) was one of them. Cramer said some negative news in the insurance industry along with the cyber attack are weighing down UnitedHealth Group Inc (NYSE:UNH). But he thinks the stock is a great buy on the latest pullback.

UnitedHealth Group Inc (NYSE:UNH) shares are down 15% over the past one year.

ClearBridge Large Cap Growth Strategy stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its first quarter 2024 investor letter:

“Given our view that the overall market looks expensive, mostly due to mega cap valuations, the low likelihood that technology can continue to deliver well above market returns and an expected slowdown in economic growth, risk management has guided our recent positioning activity. We have been consistently trimming from the select bucket and redeploying into undervalued stable and cyclical names, while also being cognizant of position sizing to maintain the latitude to add to names when prices become attractive.

We were also active in adding to stable bucket investments PayPal and UnitedHealth Group Incorporated (NYSE:UNH) where negative near-term sentiment led to more attractive risk/reward profiles. We added to electronic payments provider PayPal as we have growing confidence that new CEO Alex Chriss’s strategic focus areas can improve the company’s performance, particularly in the key branded business. We added to our UnitedHealth position after shares were pressured due to fears over competition among managed care providers and rising medical loss ratios in the industry. We believe the company will be able to “re-price” for higher medical costs, making this pressure transitory and we see competitive concerns as overblown.”

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