From Yahoo Finance: 2025-05-07 13:04:00

In an article highlighting Billionaire Mario Gabelli’s large-cap stock picks, UnitedHealth Group Incorporated (UNH) stands out with a 39.57% upside potential. Despite a recent 22% sell-off due to disappointing Q1 2025 results, the company holds promise. UNH has cut its full-year earnings forecast but remains well-positioned for growth in various business lines, including Medicare Advantage and Optum Health. Additionally, the US Centers for Medicare & Medicaid Services finalized a substantial increase in 2026 Medicare Advantage payments, boosting UNH’s outlook.

With uncertainty in the stock market due to tariffs and trade wars, technology stocks have been hit hard. Despite the challenges, this could be a prime opportunity to capitalize on significant pullbacks in the equity markets. Billionaire Mario Gabelli’s 10 large-cap stock picks, which include UNH, offer potential upside amidst market downturns. By imitating the top stock picks of hedge funds, investors can potentially outperform the market and generate significant long-term value.

Mario Gabelli, a prominent money manager on Wall Street, has built Gamco Investors into a diversified hedge fund with over $32 billion in assets under management. The fund’s value investment strategy, focusing on stocks trading below their fair value and potential catalysts for growth, has delivered impressive annualized returns of 16.3% since inception. Gabelli’s approach includes looking for catalysts like business sales or spinoffs, mergers, industry consolidation, or regulatory changes to drive share value.

The US tariff-fueled trade war, sparked by President Donald Trump’s “Liberation Day” tariffs, has roiled the stock and bond markets. While reciprocal tariffs were temporarily suspended, the threat of a global trade war looms, potentially impacting economic expansion and capital flows. Federal Reserve Chair Jerome Powell warns of higher inflation and slower growth due to unexpected tariff impacts. Policymakers and market players are on edge, monitoring erratic movements in the U.S. Treasury market for potential financial risks.



Read more at Yahoo Finance: Among Billionaire Mario Gabelli’s Large-Cap Stock Picks with Huge Upside Potential