The Dow Jones might only be made up of 30 stocks, but that doesn’t mean it’s easy to name them all! The inclusivity of all sectors means some companies may be less familiar to UK investors.
This can mean some shares can sneak under the radar, with one I’ve spotted having the potential to beat the UK stock market this year. Here’s why.
Keeping people healthy
I’m talking about UnitedHealth Group (NYSE:UNH), the US healthcare giant that’s the largest sector insurer in the country. It makes money from both health insurance premiums and other related medical services.
Over the past year, the share price is down 34%, which is one reason why some might ignore it for 2026. Part of this is due to weaker earnings growth, as cost pressures have led to lower profit margins. Different medical care ratios rose, leading to higher service utilisation and higher claims costs. This remains a risk going forward.
Another factor was more at a sector level. Healthcare’s seen as a more defensive area of the stock market. In 2025, investors were happy to buy riskier stocks from the tech and AI space, which did very well. Therefore, there was some selling pressure on UnitedHealth as investors rotated out of it and into higher-growth sectors.
The tide’s changing
I think things could look a lot different as we progress through 2026. To begin with, the company raised its full-year earnings outlook in its latest report in late October. The CEO flagged that the company is positioned “for durable and accelerating growth in 2026 and beyond“.
This is being driven by a few factors, such as a rising client base, with 795,000 extra clients last quarter versus the same period the year prior. Further, the report noted the financial boost was partly “driven by growth in serving people with complex needs and Medicaid rate improvements”.
Aside from the core business momentum, I think the stock could do well as the fall from 2025 has made it a much more attractive value play. At the start of last year, the price-to-earnings ratio was 31.83. It’s now at 17.55. This drop provides a better entry point for those who were previously waiting for a move lower before buying.
Outperforming the FTSE 100
I think UnitedHealth could beat the FTSE 100 this year. Not only are we seeing stronger demand for medical services, but the defensive angle could really help amid ongoing geopolitical and trade uncertainty. This could cause indices like the FTSE 100 to fall, but UnitedHealth could rally as investors rush to buy it.
Let’s also not forget the FTSE 100 could come under pressure from domestic headaches, such as slow growth. UnitedHealth only has minor exposure to the UK, so it could outperform if the US economy holds firm. This diversification could make it an attractive idea for investors to consider as we start the year.
