Top 8 Stocks To Buy In 8 Different Sectors for the Next 3 Months

5. UnitedHealth Group Incorporated (NYSE:UNH)  

Number of Hedge Fund Holders: 112  

Sector: Healthcare  

UnitedHealth Group Incorporated (NYSE:UNH) is the largest health insurer in the U.S., providing health benefits and services through its UnitedHealthcare and Optum segments. The company’s diverse business model spans insurance, healthcare delivery, and data analytics, making it a dominant player in the industry. UnitedHealth Group Incorporated (NYSE:UNH) generates revenue from premiums on risk-based products, fees from various services, sales of healthcare products, and services & investments.

On November 22, UnitedHealth Group Incorporated (NYSE:UNH) received a favorable ruling in a lawsuit it filed against the Centers for Medicare & Medicaid Services (CMS) regarding the company’s Medicare Star Ratings for the 2025 plan year. A federal judge in Texas ordered CMS to recalculate UnitedHealth Group Incorporated’s (NYSE:UNH) ratings, which were allegedly downgraded due to a single phone call handled by its call center.

UnitedHealth Group Incorporated (NYSE:UNH) is leveraging Artificial Intelligence (AI) to drive efficiency and cost savings. One of the ways the company is utilizing AI is by automating its call centers, which receive over a million calls per day. By implementing AI-powered solutions, the company aims to divert or resolve customer concerns without the need for human interaction, potentially saving the company billions of dollars over the next several years.

The company is also exploring various AI use cases to streamline its operations and improve customer experience. By adopting AI technology, UnitedHealth Group Incorporated (NYSE:UNH) is positioning itself for long-term growth and success. In their Q3 investor letter, Mairs & Power Growth Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH):

“One great example of this is UnitedHealth Group Incorporated (NYSE:UNH), a long-term holding of the Fund. Founded in 1974 in Minnetonka, Minnesota, UnitedHealth Group has grown to become the largest managed care organization in the United States. UnitedHealth Group is already working on multiple AI use cases that could potentially save the company billions of dollars in efficiencies over the next several years. For instance, the company’s call centers receive more than a million calls per day. AI could potentially divert or resolve customer concerns without human interaction. We fully admit the company is not perfect and has its ups and downs. Earlier this year, the company was caught up in a large data breach from a company it acquired in 2022. Healthcare is also deeply political, and UnitedHealth Group can often find itself in the political crosshairs during an election year. We’ve seen these political risks play out before and believe UnitedHealth Group will again emerge unscathed.”