We recently released a list 10 Most Profitable Blue Chip Stocks Buy Now. In this article, we will look at the places where UnitedHealth Group Incorporated (NYSE:UNH) stands immediately with other most profitable blue chip stocks.
Blue Chip Stock is a large, financially stable company with strong market operations, consistent profitability and regular dividend payments. They are often market leaders with strong business models and they are resilient throughout the business cycle. The DOW index (DJIA) includes many blue chip stocks, so this index is often considered an indicator of its overall performance. Investors often flock to blue chip stocks when markets are volatile, economic uncertainty or the economy is in late stage expansion, because these large companies tend to provide stable and consistent returns, with smaller or greater risks or greater risks.
We believe that Blue Chip stocks, especially the components of the Dow Jones Index, represent a unique blend of value and scale factors, combining financial stability, earnings consistency, and attractive market valuations often associated with value stocks, as well as the size and market advantages of large companies. This double exposure strengthens their resilience in the downturn and makes it perform well during recession when investors tend to turn to quality and safer stocks. For reference, the FAMA-FRENCH three-factor model introduced in 1993 concluded that contact with several favorable factors could further improve stock returns. In this case, both the value and large size factors have exceeded in the past few years, especially since the beginning of the year.
Please read also: 10 Most Profitable Large Stocks Buy Now
Our research suggests that fear of the recession and Trump’s turmoil may persist and that it is possible to continue to favor the most profitable blue chip stocks over everything else. The U.S. government appears to be eroding investor trust through too many unpredictable and contradictory actions - Trump appears to be eased to ease his position on the U.S.-China trade war, saying tariffs on Chinese goods "will not be as high as 145%" and "in essence, it will not be reduced, but it will not be reduced." Although this may seem a good sign at first glance, such actions are likely to prevent U.S. partners from negotiating tax exemptions simply because the current government has become too unpredictable.
The VIX volatility index remains high compared to the long-term trend, while crude oil prices remain on a downward trend, suggesting expectations of weak industrial demand and weaker economy, our ideas remain. On the consumer side, it is reasonable to believe that American consumers are becoming more cautious than ever before - employees exited the Fred reported tax rates, which dropped significantly, comparable to the consequences of the 2008 financial crisis. When employees are reluctant to quit, this means two things: (1) it is difficult to find a job, which means the economy is slowing down, and (2) their expectations for the future become more pessimistic, which leads to a lower willingness to quit and potentially difficult to find a new job. Both factors mean that consumer spending may slow down in the coming quarters, further forcing GDP growth.
The key point for readers is that the chances of recession and long bear markets remain. In this case, the best hedging strategy is to hold stocks of companies that perform well in the bull market, but at the same time protect turmoil and recession. Our belief is that the most profitable blue chip stocks are the best candidates because they have a wide moat and strong cash flow that can withstand any economic slowdown and even potentially absorb incremental tariffs.
Senior healthcare professionals advise patients in the clinic.
To compile a list of the most profitable blue chip stocks we have purchased now, we screened current and former members of the Dow Jones Industrial Average and identified the most recent report of the most net income companies for the fiscal year. From this group, we selected the companies with the highest net profit margins, which demonstrates reasonable financial position and excellent cost management. As of the most recent quarter, these stocks were ranked in order of rising net profit margins. According to Insider Monkey's database, for each stock, we also include the number of hedge funds that own the stock.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
Net profit margin: 3.81%
Net income last year: $25.7 billion
Number of hedge fund holders: 150
UnitedHealth Group Incorporated (NYSE:UNH) is the largest diversified healthcare company that offers health insurance plans in employer-sponsored, Medicare Advantage, Medicaid and personal markets, covering more than 50 million people in the United States. The company also owns the Optum field, which provides pharmacy welfare management, healthcare services, and supplemental data analytics and technical solutions.
UnitedHealth Group Incorporated (NYSE:UNH) started in 2025 with strong growth among enterprises but facing unexpected performance challenges, resulting in a decline in adjusted EPS Outlook. The company identified two main factors that impact performance: nursing activity that increases health insurance benefits, nursing activity in 2025 increased by twice the expected rate in Q1, and unexpected changes in the Optum Medicare membership profile that impacts 2025 revenue. The increase in nursing activities is primarily in physician and outpatient services, especially limited to Medicare Advantage businesses without affecting commercial or Medicaid businesses.
To address these challenges, UnitedHealth Group Incorporated (NYSE:UNH) is implementing a number of initiatives, including programs that ensure complex patient engagement in clinical and value, consistently interacting with members in families and post-admission members, and improving physician clinical workflows to better transition to new CMS risk models. Despite these challenges, UNH’s Medicare Advantage business is expected to serve another 800,000 people this year, while Optum Health is expected to add 650,000 net new patients to a value-based care arrangement. UNH remains committed to returning to its long-term EPS growth target of 13% to 16%, making it one of the most profitable stocks to buy now.
Overall, UNH Ranked 9 On our list of the most profitable blue chip stocks to buy in stock now. Although we acknowledge UNH’s potential as an investment, our belief is that AI stocks have higher returns in a shorter time frame and do this in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for more promising AI stocks than UNH, but their earnings are trading at less than 5 times the price, check out our report Cheapest AI stocks.
Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.
Disclosure: None. This article was originally published in Internal monkey.