We recently published a list of 15 Best Blue Chip Stocks to Buy According to Billionaires. In this article, we are going to take a look at where UnitedHealth Group Incorporated (NYSE:UNH) stands against other best blue chip stocks to buy according to billionaires.
Is A Potential Trade War on the Horizon?
The US stock market is showing volatility after President Donald Trump’s recent announcement of sweeping 10% tariffs on all US trading partners and higher tariffs on countries with a trade deficit with the US.
Economists and investors believe President Trump’s tariff policies could potentially lead to a trade war with America’s trading partners, propelling inflation even higher. These two factors could plunge the US into an economic slowdown, and the markets could potentially sell off quickly if a recession materializes among its looming threats.
On April 10, CNBC reported that stock prices rose sharply a day before after declining for four days straight following President Trump’s announcement of a pause in a significant part of his tariff plan. The White House said that Democratic lawmakers were indulged in partisan games by inquiring if any stock market purchases conducted in recent days were undertaken with prior knowledge of the fact that President Trump would authorize a pause in his tariff plans. Trump announced higher tariffs on China even after he announced a 90-day pause for steeper-than-baseline rates for several other countries.
READ ALSO: 10 Best Medical Stocks to Buy According to Billionaires and 10 Best Organic Food Stocks to Buy According to Billionaires.
Record High Tariffs in the US
On April 11, Erica York, economist and the vice president of federal tax policy at the Tax Foundation’s Center for Federal Tax Policy, talked to CNBC’s “The Exchange” about the ongoing scenario and said that the imposition of around 145% total tariff on Chinese goods would result in a suspension of most trade between the US and China. She said:
“It depends on how narrowly the tariff is applied or how broadly it’s applied, but generally, if you get north of a triple-digit tariff, you are cutting off most trade.”
She further opined that:
“There may still be some things without any substitutes that companies just have to foot the bill, but for the most part, that cuts it off.”
The economist said that Trump’s new China tariffs, along with the others he implemented, would raise the average tariff rate to record highs the country hasn’t seen since the 1940s. The current market volatility has created numerous remarkable investment opportunities, so let’s look at the 15 best blue chip stocks to buy according to billionaires.
Our Methodology
We reviewed financial media reports and ETFs to compile an initial list of blue chip stocks and selected stocks that have a 5-year revenue growth rate of at least 10%. We have also considered the popularity of these stocks among billionaire investors. These billionaires are founders or managers of some of the world’s leading hedge funds and companies. We also added the number of hedge fund holders for each stock as of fiscal Q4 2024, and sourced the hedge fund sentiment data from Insider Monkey’s database.
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 Billionaire Investors: 23
Number of Hedge Fund Holders: 150
UnitedHealth Group Incorporated (NYSE:UNH) provides healthcare coverage, data consultancy, and software services. It operates through the OptumRx, OptumInsight, OptumHealth, and UnitedHealthCare segments, which have solid operations. UnitedHealthCare, its insurance division, added millions of customers during fiscal 2024 and is continuing to expand its operations. Its OptumHealth division grew revenues to around $105 billion in fiscal 2024 and is expected to touch $117 billion in fiscal 2025.
UnitedHealth Group Incorporated (NYSE:UNH) employed around $17 billion in growth capital in fiscal 2024 to strengthen its capabilities and returned over $16 billion to shareholders through share repurchases and dividends. It expects cash flow from operations to reach $33 billion in fiscal 2025, or 1.2 times net income.
On April 10, Truist raised the firm’s price target on UnitedHealth Group Incorporated (NYSE:UNH) to $660 from $610, keeping a Buy rating on the shares, as reported in a research note previewing Q1 results in Healthcare Services. The company ranks 11th on our list of the top blue chip stocks to buy according to billionaires.
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 the best blue chip stocks to buy according to billionaires. While we acknowledge the potential for UNH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNH but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
