Banking & Finance

Both Hedge Fund and Mutual Fund Managers Love These Red-Hot Financials

The company also provides value-enhancing offerings such as loyalty and rewards programs, information services and consulting. According to Nilson estimates, Mastercard is the third-largest global credit and debit network, as measured by volume.

Small businesses and individuals having a hard time entering the digital economy are getting a boost from Mastercard as the need to receive funds electronically and make digital and contactless payments has been underscored by the COVID-19 pandemic.

The company has pledged to connect 1 billion people and 50 million small businesses to the digital economy by 2025. This commitment is an extension of its 2015 promise to bring 500 million people who don’t have ready digital access to financial products into the system.

Investors receive just a 0.47% dividend. Goldman Sachs has set a sizable $450 price target. The consensus target for Mastercard stock is $428.06, and Monday’s last trade came in at $372.38 a share.

UnitedHealth

This insurance and managed health care giant also makes the list. UnitedHealth Group Inc. (NYSE: UNH) is one of the largest managed care organizations, serving members both in the United States and internationally. It is the most diversified payer, either by product line, geography or customer type.

Its UnitedHealthcare segment offers consumer-oriented health benefit plans and services for national employers, public sector employers, midsized employers, small businesses and individuals; health and well-being services to individuals age 50 and older, addressing their needs for preventive and acute health care services, as well as services dealing with chronic disease and other specialized issues for older individuals; and Medicaid plans, Children’s Health Insurance Program, and health care programs; and health and dental benefits.

The OptumHealth segment provides access to networks of care provider specialists, health management services, care delivery, consumer engagement and financial services. This segment serves individuals through programs offered by employers, payers, government entities and directly with the care delivery systems.

The OptumInsight segment offers software and information products, advisory consulting arrangements, and services outsourcing contracts to hospital systems, physicians, health plans, governments, life sciences companies and other organizations.

OptumRx is the segment that provides pharmacy care services and programs, including retail network contracting, home delivery, specialty and compounding pharmacy, and purchasing and clinical. It also develops programs in areas such as step therapy, formulary management, drug adherence and disease/drug therapy management.

Shareholders receive a 1.21% dividend. The Goldman Sachs analysts have a $464 price target. That compares to the $435.42 per share consensus target, UnitedHealth stock closed most recently at $410.95.


Financials and financial-related stocks dominate the shared favorites list, and with good reason. Many underperformed last year but have been absolutely on fire this year. It may make sense to buy partial positions now and see if some of these top stocks don’t back up this summer, where more shares could be added at lower levels.