Starter Stock Portfolio: 5 Safe Stocks To Invest In Now

4. UnitedHealth Group Inc. (NYSE:UNH)

Number of Hedge Fund Holders: 113

We saw 113 hedge funds long UnitedHealth Group Inc. (NYSE:UNH) in the fourth quarter, with a total stake value of $11.2 billion.

UnitedHealth Group Inc. (NYSE:UNH) is a managed healthcare company. It offers consumer-oriented health benefit plans, healthcare coverage, and health and well-being services.

As of March 7, Bank of America Securities analysts maintain a Buy rating and $675 price target on UnitedHealth Group Inc. (NYSE:UNH).

Ruane, Cunniff & Goldfarb said this about UnitedHealth Group Inc. (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)