Billionaire David Tepper’s 10 Stock Picks with Huge Upside Potential

5. UnitedHealth Group Incorporated (NYSE:UNH)

Appaloosa Management Stake Value: $88,272,570

Upside Potential as of May 5: 41.28%

Number of Hedge Fund Holders: 150

UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company. It operates through two main segments: UnitedHealthcare (for health insurance and benefits) and Optum (for health services and technology solutions). This company is one of the largest of its kind worldwide and serves millions of people across various markets, including commercial, Medicare, and Medicaid.

In Q1 2025, UnitedHealth (NYSE:UNH) reported mixed financial results and revised its full-year guidance downward. The company posted $109.6 billion in revenues, a $9.8 billion increase year-over-year. First-quarter earnings were $6.85 per share, and adjusted earnings came in at $7.20 per share. While the company grew to serve more people, with UnitedHealthcare increasing its consumer base by 780,000 year to date, CEO Andrew Witty acknowledged that UnitedHealth (NYSE:UNH) “did not perform up to our expectations.” As a result, management revised the 2025 performance outlook to net earnings of $24.65 to $25.15 per share and adjusted earnings of $26 to $26.50 per share. UnitedHealthcare adjusted its guidance due to higher-than-expected Medicare Advantage usage and changes in Optum Health members. Medicare saw increased demand for doctor and outpatient services. Additionally, Optum Health faced reimbursement challenges due to minimal 2024 beneficiary engagement by plans exiting markets.

On April 23, 2025, RBC Capital Markets adjusted its outlook on UnitedHealth (NYSE:UNH). The research firm reduced the stock’s price target to $525 from the previous $655 while maintaining an Outperform rating. The revision followed the company’s disappointing first-quarter earnings.