We recently published a list of Billionaire Chase Coleman’s 10 Stocks with Huge Upside Potential. In this article, we are going to take a look at where UnitedHealth Group Incorporated (NYSE:UNH) stands against other Billionaire Chase Coleman’s stocks with huge upside potential.
Equity markets achieved an unprecedented winning streak over the past two years at the back of an artificial intelligence-driven run. Major US indices were on a roll, soaring to record highs as investors tailored their investments to opportunities around the revolutionary technology. Chase Coleman is one hedge fund manager who benefited from the impressive run by investing his hedge fund’s money in some of the top-performing AI stocks.
Founded by Coleman in 2001, Tiger Global Management LLC was one of the best-performing hedge funds after gaining 24% in 2024. The impressive return came on the billionaire investor betting on some of the biggest companies with significant exposure to artificial intelligence.
Fast forward, Coleman is one of the most significant casualties of the broader stock market correction. With the S&P 500 pulling back by about 6% and tech-heavy Nasdaq down by about 8%, the billionaire investor has felt the full brunt of the artificial intelligence-driven run cooling off. A good number of Tiger Global Management stock holdings have shed more than 10% in market value as the overall stock market correction gathers steam.
While up to 20% pullbacks might rattle most investors, billionaire Investor Coleman’s strategy focuses on long-term investing. Consequently, he is never perturbed by short-term market corrections. Coleman continues to maintain significant holdings in tech giants on expectations the segment will continue growing amid the artificial intelligence boom.
“Think about it in terms of companies investing in these technologies, and how well they use it,” he said, giving the example of Amazon using ChatGPT to facilitate shopping. “It’s going to be gradual. Be patient.”
We combed Tiger Group Management LLC SEC Q4 2024 13F filings to identify Billionaire Chase Coleman’s 10 Stocks with Huge Upside Potential. We focused on stocks that have pulled back significantly and therefore command significant upside potential. We then analyzed the stocks on why they stand out, as solid value investments. Finally, we ranked the stocks in ascending order based on their upside potential.
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).
UnitedHealth Group Inc. (UNH): Among Billionaire Chase Coleman’s Stocks with Huge Upside Potential
A senior healthcare professional giving advice to a patient in a clinic.
Tiger Global Management LLC’s Stake Value: $221.97 Million
Upside Potential as of April 30: 38.06%
Number of Hedge Fund Holders: 150
UnitedHealth Group Incorporated (NYSE:UNH) is a health care and well-being company offering consumer-oriented health benefit plans and services for national, public sector, and mid-sized employers. It also provides pharmacy care services and programs. The stock has been under pressure, going down by about 18% as escalating medical costs continue to raise serious concerns.
The healthcare benefits company delivered disappointing first quarter 2025 results that missed estimates as it continues to feel the effects of rising medical costs of people enrolled in Medicare plans. Consequently, UnitedHealth Group Inc. (NYSE:UNH) delivered earnings per share of $7.20 for Q1 2025 against $7.29 a share expected. It also slashed its full-year adjusted earnings outlook to between $26 and $26.50 a share against a previous outlook of $29.50 to $30.
Amid the disappointing results, UnitedHealth Group Inc. (NYSE:UNH) is staring at a significant increase in federal rates for insurers under the Medicare Advantage. In addition, the company continues to register significant growth, going by the 9.8% revenue growth in Q1 to $109.5 billion. It also added 780,000 new customers in the quarter, further cementing its position. It also remains one of billionaire Chase Coleman’s 10 stocks with tremendous upside potential as it continues to reward investors with a competitive 2.01% dividend yield.
On April 23, RBC Capital Markets lowered UnitedHealth Group Inc. (NYSE:UNH) price target to $525 from $655 while keeping its Outperform rating. The revision followed a review of Q1 2025 earnings, where analysts, led by Ben Hendrix, cited lower-than-expected Optum Health member engagement, affecting reimbursements.
Overall, UNH ranks 4th on our list of Billionaire Chase Coleman’s stocks with huge upside potential. While we acknowledge the potential of UNH as an investment, our conviction lies in the belief that 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.
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