Jim Cramer is Talking About These 5 Stocks

3. UnitedHealth Group Inc (NYSE:UNH)

Number of Hedge Fund Investors: 113

Jim Cramer recently talked about some of the worst performers in the Dow during the first quarter. UnitedHealth Group Inc (NYSE:UNH) shares got clobbered in the period and Cramer believes that was because of higher medical costs and the hacking attack on UnitedHealth Group Inc (NYSE:UNH) which Cramer said was one of the worst data breaches in the history of the industry. Cramer said his “friends” in the cybersecurity industry say it was “just horrendous.” However, Cramer said of the six losers of the Dow he was covering in his program, UnitedHealth Group Inc (NYSE:UNH) had the highest chance of a rebound.

Sequoia Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its fourth quarter 2023 investor letter:

“The return in UnitedHealth Group Incorporated (NYSE:UNH) shares was essentially flat last year, whereas the Index was up sharply. In 2022, the return in UnitedHealth shares was modestly positive, whereas the Index was down sharply. The company’s financial performance, however, has been quite steady all along. In 2022, United’s revenues and earnings per share were up approximately 13% and 17%, respectively. We expect them both to be up low-teens in 2023. These pleasing financial results are consistent with United’s historical track record and with what we believe we will see for years to come.

Last year, sentiment across the managed care space was negatively impacted by concerns over reimbursement levels for Medicare Advantage, a perceived increase in the risk of adverse regulation for pharmacy benefit managers, and a slight deterioration of medical loss trends. While we do not dismiss these factors as irrelevant, we consider them in the context of the scale and diversity of United’s business as well as the resulting essential role the company plays in the admittedly imperfect US healthcare system…” (Click here to read the full text)