Is it Time to Sell UnitedHealth Group (UNH) Before its Too Late?

Parnassus Investments, an investment management firm that focuses on owning a concentrated portfolio of U.S. large cap stocks, released its Parnassus Value Equity Fund second-quarter 2025 investor letter. The full letter is available for download here. For the second quarter of 2025, the fund reported a net return of 7.24%, outperforming its benchmark, the Russell 1000 Value Index, which returned 3.79% for the same period. The fund’s top 5 holdings are also listed in the letter, showing the firm’s main investment positions heading into 2025.

One of the companies mentioned in the letter is UnitedHealth Group Inc. (NYSE:UNH). UnitedHealth Group Inc. (NYSE:UNH) operates as a health care company in the United States and internationally. Over the past month, UnitedHealth Group Inc. (NYSE:UNH) fell by -15.12%, and it went down to -54.69% over the last 12 months. On July 29, 2025, UnitedHealth Group Inc. (NYSE:UNH) shares closed at $261.07, with a market value of $236.83 billion.

Here is what they have to say about UnitedHealth Group Inc. (NYSE:UNH) in their investor letter:

"UnitedHealth Group declined as the company battled with the fallout of missing earnings forecasts and the abrupt resignation of Chief Executive Andrew Witty. We are optimistic that execution will significantly improve with the return of former CEO Stephen Hemsley."

Is it Time to Sell UnitedHealth Group (UNH) Before its Too Late?  

UnitedHealth Group Inc. (NYSE:UNH) ranks 18th in our list of the 30 most popular stocks among hedge funds. According to our data, 139 hedge fund portfolios held positions in UnitedHealth Group Inc. (NYSE:UNH) at the end of the first quarter of 2025, down from 150 in the previous quarter. While we acknowledge the potential of GPN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

UnitedHealth Group Inc. (NYSE:UNH) ranks 18th in our list of the 30 most popular stocks among hedge funds. According to our data, 139 hedge fund portfolios held positions in UnitedHealth Group Inc. (NYSE:UNH) at the end of the first quarter of 2025, down from 150 in the previous quarter. While we acknowledge the risk and potential of GPN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GPN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered UnitedHealth Group Inc. (NYSE:UNH) and Barclays analyst Andrew Mok’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.