Top 5 Health Insurance Stocks to Buy

In this article, we discuss the top 5 health insurance stocks to buy. If you want to read our detailed analysis of these companies, go directly to the Top 10 Health Insurance Stocks to Buy.

5. UnitedHealth Group Incorporated (NYSE: UNH)

Number of Hedge Fund Holders: 89

UnitedHealth Group Incorporated (NYSE: UNH) is a Minnesota-based health insurer founded in 1977. It is placed fifth on our list of top 10 health insurance stocks to buy. UnitedHealth stock has offered investors returns of more than 41% over the past year. The company has several business to business and business to consumer insurance plans and the firm also works with governmental agencies to provide healthcare to underprivileged individuals. It also has a partnership with the University of California to expand mental health services in the state.

On May 19, investment advisory Wells Fargo initiated coverage on UnitedHealth Group Incorporated (NYSE: UNH) stock with an Overweight rating and a price target of $478, implying a close to 17% upside potential. 

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Eagle Capital Management is a leading shareholder in UnitedHealth Group Incorporated (NYSE: UNH) with 3.2 million shares worth more than $1,2 billion. 

Just like Humana Inc. (NYSE: HUM) and CVS Health Corporation (NYSE: CVS), UnitedHealth Group Incorporated (NYSE: UNH) is a top health insurance stock to buy. 

In its Q1 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and UnitedHealth Group Incorporated (NYSE: UNH) was one of them. Here is what the fund said:

“Shares of UnitedHealth Group Incorporated reacted positively to more favorable 2021 guidance than previewed at the company’s December 2020 investor day. Medical costs returned to a seasonal baseline, inclusive of COVID-19-related impacts. We consider UnitedHealth a core holding and a way to play positive demographic, population health, and value-based reimbursement trends. Despite its size, we think the company can grow earnings at a mid-teens rate over the long-term.”