Billionaire Mario Gabelli’s 10 Large-Cap Stock Picks with Huge Upside Potential

3. UnitedHealth Group Incorporated (NYSE:UNH)

Gamco Investors Equity Stake: $1.48 Million

Market Capitalization as of May 5: $365.14 Billion

Stock Upside Potential as of May 5: 39.57%

Number of Hedge Fund Holders: 150

UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare company offering consumer-oriented health benefit plans and services for national and public sector employers. It provides care delivery, management, wellness and consumer engagement, and health financial services. The stock cratered to its worst day since 1998 as disappointing Q1 2025 results triggered a 22% sell-off. While Jefferies cut its stock price target to $530 from $609 following the disappointing results, the firm still maintains a Buy rating.

The Medicare Advantage company posted adjusted earnings per share of $7.20 against $7.27 expected. Likewise, revenues missed estimates of $111.6 billion, coming in at $109.6 billion. UnitedHealth Group Incorporated (NYSE:UNH) was forced to cut its full-year earnings forecast to between $26 and $26.50 a share, owing to higher-than-anticipated Medicare advantage costs.

Nevertheless, UnitedHealth Group remains in a solid position to grow across its business lines. Its Medicare Advantage will serve an additional 800,000 people in 2025, with the Optum Health unit poised to add 650,000 net new patients. In addition, UnitedHealth Group Incorporated (NYSE:UNH) received a boost after the US Centers for Medicare & Medicaid Services (CMS) finalized a significant increase in 2026 Medicare Advantage payments. The agency has confirmed a rate hike that is more than double the initial proposal.