In this article, we take a look at the 5 best large-cap stocks to buy. If you want to read our detailed analysis of the large-cap stocks, go directly and read the Starter Stock Portfolio: 10 Large-cap Stocks To Buy.
5. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 105
UnitedHealth Group Incorporated (NYSE:UNH), an American multinational healthcare and insurance company, ranks fifth on our list of the best large-cap stocks to buy. As spending on healthcare products constitutes 18% of the U.S. GDP, investing in health stocks, such as UnitedHealth Group Incorporated (NYSE:UNH), can be a wiser option.
In Q3 2021, UnitedHealth Group Incorporated (NYSE:UNH) posted an EPS of $4.52, beating the estimates by $0.10. The company reported revenue of $7.23 billion, showcasing an 11.1% growth from the prior-year quarter. UnitedHealth Group Incorporated (NYSE:UNH) gained 29.7% in the past year. The company pays an annual dividend of $5.80 per share, yielding 1.38%, and has a 12-year track record of consistent dividend growth.
Recently, Evercore ISI lifted its price target on UnitedHealth Group Incorporated (NYSE:UNH) to $480, while keeping an Outperform rating on the shares, highlighting the company’s solid Q3 earnings.
As of Q2 2021, 105 hedge funds tracked by Insider Monkey were bullish on UnitedHealth Group Incorporated (NYSE:UNH), valued at $13.12 billion. The number of hedge funds having stakes in the company stood at 89 in the previous quarter, presenting the positive hedge fund sentiment.
ClearBridge Investments mentioned UnitedHealth Group Incorporated (NYSE:UNH) in its Q2 2021 investor letter. Here is what the firm has to say:
“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience and consistency for the Strategy. We think these companies should comprise just under half of portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.
UnitedHealth Group, a name we have owned in the Strategy since 1992, is a good example of a long-term compounder, having grown its revenue base from approximately $600 million to north of $260 billion over that time frame. It remains constantly focused on investing in new growth drivers such as telemedicine and health care analytics. Broadcom and Comcast have delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”
