Is UnitedHealth Group Incorporated (UNH) the Best Dow Stock?

We recently published a list of The Best and Worst Dow Stocks. In this article, we are going to take a look at where UnitedHealth Group Incorporated (NYSE:UNH) stands against other Dow stocks.

The Dow Jones Industrial Average is a benchmark index of the top 30 companies in the US. It represents the strength of the US economy and carries great historical significance as well.

It also acts as a reference point for analysts and investors. However, not all stocks within this elite group of companies perform equally. While some thrive on innovation and economic boom, others struggle due to various setbacks and economic trends.

We decided to break down the index and find out the best and worst stocks, looking at what was making them perform unexpectedly this year.

Methodology

In order to come up with our ranking of the best and worst Dow stocks, we first assigned a rank to each stock based on the number of hedge funds holding the stock. We then looked at the short interest in each stock and assigned the top rank to the company with the least short interest.

We then combined the two ranks to see which stock was the best on average. The list is in ascending order, with the best stock taking the number one spot.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Is UnitedHealth Group Incorporated (UNH) the Best Dow Stock?

A senior healthcare professional giving advice to a patient in a clinic.

UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 150

Short Interest as of Apr 30, 2025: 1.27%

UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare company. It operates in the Optum Rx, Optum Health, UnitedHealthcare, and Optum Insight segments. The company offers software and information products, consumer-oriented health benefit plans and services, pharmacy care services and programs, wellness and consumer engagement, and others.

The firm’s first-quarter results disappointed investors. It missed Wall Street analysts’ estimates for both revenue and EPS. As a result of this miss, the share price dropped about 22% on the same day. On a positive note, operating margins and operating income improved during the quarter.

Based on this underwhelming performance, management lowered its forward guidance and highlighted some issues. For the first time since the Recession of 2008-2009, EPS growth will be negative even if the company meets analyst expectations. Revenue estimates are still the same, ranging between $450 billion to $455 billion. Going forward, the firm plans to take some key initiatives, including improving the transition to the new CMS risk model and improving member engagement.

Overall, UNH ranks 8th on our list of best and worst Dow stocks. While we acknowledge the potential of UNH as an investment, our conviction lies in the belief that some 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.

Disclosure: None. This article is originally published at Insider Monkey.