In this article, we will take a look at the 5 best Dow stocks to buy right now. If you want to see some more of the best Dow stocks to buy, go directly to 12 Best Dow Stocks To Buy Right Now.
5. UnitedHealth Group Inc (NYSE:UNH)
Number of Hedge Fund Holders: 110
UnitedHealth Group Inc. (NYSE:UNH) is a diversified healthcare company in the U.S., with four operating segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx. It has delivered a total return of around 111.02% over the past five years. Recent Change Healthcare and LHC Group acquisitions make UnitedHealth Group Inc. (NYSE:UNH) more diverse and tech-savvy.
In 2022, the company’s revenues were $324.16 billion, up 12.7% YoY. Analysts estimate a similar growth rate in 2023, with projected sales of around $359.7 billion by the end of the year. UnitedHealth Group Inc. (NYSE:UNH) stock has a low but growing dividend yield, which has increased by 17.4% over the past 5 years. This stable healthcare stock provides a defensive option for investors looking for upside exposure in the market.
According to Insider Monkey data, UnitedHealth Group Inc. (NYSE:UNH) had 110 hedge funds as of the end of the fourth quarter of 2022. Rajiv Jain’s GQG Partners is the company’s notable stakeholder in Q4 2022, with 3.97 million shares worth $2.10 billion.
Deutsche Bank analyst George Hill increased his price target on UnitedHealth Group Inc. (NYSE:UNH) to $617 from $615 and maintained a ‘Buy’ rating after Q4 results. Hill acknowledged uncertainties in policy and economic pressure, but praised UnitedHealth’s guidance and potential for upside.
In its Q4 2022 investor letter, Ruane, Cunniff & Goldfarb cited UnitedHealth Group Incorporated ((NYSE:UNH)). Here is what the firm has to say:
“UnitedHealth Group Incorporated (NYSE:UNH) was among Sequoia’s best performing stocks this year, thanks to typically strong financial results and increased appreciation for the business’ relative insensitivity to the broader economy. For the full year 2022, United’s revenues and EPS are expected to be up approximately 13% and 17%, respectively. Versus 2019, the company’s revenues and EPS are expected to have compounded at annual rates of approximately 10% and 14%, respectively.
UnitedHealth Group may not be a particularly beloved company, but it is one of the more entrenched businesses we’ve come across. Managed care, in its various forms-commercial risk, commercial fee, Medicare Advantage, and managed Medicaid- is an utterly essential component of our healthcare system. And in managed care, no one is bigger, more diversified or better run than United. In addition to its managed care business, United owns and operates the country’s third largest pharmacy benefit manger and is also the single largest owner by a wide margin of non-hospital care assets, including physician practices, urgent care centers, and ambulatory surgical centers…” (Click here to read the full text)