10 Best and Cheap Stocks to Buy Now

1. UnitedHealth Group Incorporated (NYSE:UNH)

FWD P/E Ratio: 13.56

Number of Hedge Fund Holders: 139w

UnitedHealth Group Incorporated (NYSE:UNH) is one of the 10 Best and Cheap Stocks to Buy Now. On June 19, JPMorgan analyst Lisa Gill raised the firm’s price target on UnitedHealth Group Incorporated (NYSE:UNH) from $405 to $418, while keeping a Buy rating on the stocks.

Analyst Lisa Gill noted that the firm revised its price target after meeting with the management. JPMorgan expects UnitedHealth Group Incorporated (NYSE:UNH) to manage enrollment in Medicare Advantage as it sees the company exiting unprofitable plans in 2026. As a result, the analyst expects lower Medicare Advantage enrollment rates in 2025 and 2026.

Gill noted that if the company can reach the lower end of its 3% to 5% margin target range in this segment, it will provide a meaningful upside against the current earnings estimate. However, JPMorgan’s base case does not expect the company to reach that low-end margin target in 2026, although management has expressed that aspiration.

UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare company that provides a range of health insurance and related products. It operates through two main segments including UnitedHealthcare and Optum.

While we acknowledge the potential of UNH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UNH and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.