5 Best Socially Responsible Stocks to Buy According to Analysts

4. UnitedHealth Group Inc. (NYSE:UNH)

Number of Hedge Fund Holders: 110

Analyst Price Target: $600

UnitedHealth Group Inc. (NYSE:UNH) ranks 4th in our list of the best socially responsible stocks to buy according to analysts. UnitedHealth Group Inc. (NYSE:UNH)’s ESG risk score is 15.3, according to Sustainalytics, which comes under the low risk category. UnitedHealth Group Inc. (NYSE:UNH)’s median price target is $600, which presents an attractive upside potential from the current levels.

As of the end of the fourth quarter of 2022, 110 hedge funds tracked by Insider Monkey had stakes in UnitedHealth Group Inc. (NYSE:UNH). The biggest hedge fund stakeholder of UnitedHealth Group Inc. (NYSE:UNH) is GQG Partners of Rajiv Jain which owns a $2 billion stake in the company.

Polen Focus Growth Strategy made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2023 investor letter:

“UnitedHealth Group Incorporated (NYSE:UNH) was our largest absolute detractor, declining by over 10% in the quarter. Besides healthcare as a sector coming under pressure in the quarter, we believe there was some additional pressure on the shares from the February advance release of 2024 Medicare rates for Medicare Advantage health plans. In the preview, CMS (Center for Medicare and Medicaid Services) announced Medicare rates would come in well below most people’s assumptions, which could pressure the profits of Medicare managed care providers like UnitedHealth, who also face inflationary medical cost pressures. After quarter end though, CMS adjusted those rates a bit higher. On the announcement, UnitedHealth has recouped most of its modest decline from the original announcement.

While CMS rate rules are important for companies like UnitedHealth, we believe the company is far better positioned than its peers to be able to mitigate any rate pressure or medical cost inflation. We believe this is due to its scale advantages and its other, higher-profit-margin businesses like Optum Insight, its data and analytics business, and its larger Optum Health business, where it operates the medical practices of primary care providers on a national basis.”