Top 12 Stocks to Buy According to Citadel Investment Group

5. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders as of Q4: 150

Citadel Investment Group’s Equity Stake: $799.47 Million 

UnitedHealth Group Incorporated (NYSE:UNH) reported quarterly revenue of $100.81 billion in Q4 2024, falling short of analysts’ expectations of $101.76 billion. The company’s medical cost ratio rose to 85.5%, surpassing the estimated 84.96%, reflecting increased demand for healthcare services under Medicare plans. As a result, UnitedHealth’s stock dropped nearly 5% in premarket trading. Despite these challenges, its Optum healthcare services unit expanded by 9% to $65.1 billion, and the company delivered earnings per share of $6.81, exceeding estimates. UnitedHealth Group Incorporated (NYSE:UNH) reaffirmed its 2025 profit outlook, forecasting full-year revenue between $450 billion and $455 billion, signaling confidence in its long-term growth strategy.

The company’s stock has struggled, declining 25.7% from its November 2024 peak of $630.73 and underperforming the broader healthcare sector. Over the past three months, shares have dropped nearly 23%, remaining below key technical indicators such as the 50-day and 200-day moving averages. However, analysts continue to express optimism, maintaining a “Strong Buy” rating with an average price target of $639.21, suggesting a 36.4% upside from current levels. Despite recent setbacks, UnitedHealth Group Incorporated (NYSE:UNH)’s continued growth in Optum and strong full-year revenue guidance highlight its long-term potential, making the stock an appealing opportunity at its current valuation.

Building on UnitedHealth’s long-term growth potential, the company received a significant legal boost on March 4, 2025, when a court-appointed special master found no evidence supporting the U.S. government’s billion-dollar fraud claims against it. Special Master Suzanne Segal determined that discrepancies between diagnoses submitted by doctors and later assessments by UnitedHealth’s coders did not constitute fraud, undermining the Justice Department’s 2016 lawsuit. While the ruling is not final, if adopted by the presiding judge, it would dismiss the case entirely, removing a major legal overhang for the company. UnitedHealth Group Incorporated (NYSE:UNH) welcomed the findings, criticizing the decade-long legal battle as wasteful and unfounded. This development strengthens UnitedHealth’s position, reaffirming investor confidence and alleviating regulatory concerns. With its strong revenue outlook, expanding Optum unit, and now reduced legal risks, UNH remains a top stock to buy, particularly given its current undervaluation and analysts’ bullish price targets.