10 Innovative Healthcare Stocks to Watch in 2025

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1. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 150

UnitedHealth Group Incorporated (NYSE:UNH) tops our list for being one of the best healthcare stocks. It operates in the healthcare sector in the US and globally, with four main segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx.  The board of directors approved a $2.10 quarterly dividend per share on February 24.

In line with its previous forecasts, UnitedHealth Group Incorporated (NYSE:UNH) produced approximately $400 billion in revenue in 2024 and adjusted earnings per share of $27.66. Throughout the year, it concentrated on improving the customer experience, speeding up innovation, and honing its business plan for sustained expansion to solidify its position going forward. Over $16 billion was distributed to shareholders in the form of dividends and share repurchases, while over $17 billion was allocated to expansion initiatives. The company anticipates operational cash flow to be 1.2 times its net income in 2025, or around $33 billion.

Optum Rx, a division of UnitedHealth Group Incorporated (NYSE:UNH), announced modifications to its payment models on March 20 to better reflect pharmacy expenses impacted by manufacturer pricing. The changes go into effect right away, and they will be fully implemented by January 2028. More than 24,000 independent community pharmacies in Optum Rx’s non-affiliated network will profit from this change, which attempts to give customers more reliable and reasonably priced prices.

Overall, UNH ranks first among the 10 innovative healthcare stocks to watch in 2025. While we acknowledge the potential of healthcare companies, our conviction lies in the belief that 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 that 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.

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