This year, two heavily discussed stocks are Palantir and UnitedHealth Group, yet their appeal stems from entirely different reasons.
Among the most talked-about stocks are Palantir Technologies (PLTR 6.56%) and UnitedHealth Group (UNH 2.50%).
The factors attracting attention to these companies are vastly different.
Palantir’s Rise
Palantir has positioned itself as a top player in the artificial intelligence (AI) landscape. As of June 5, the company’s stock has surged nearly 60% this year, making it one of the leading stocks on the S&P 500 and Nasdaq-100 indexes.
UnitedHealth’s Struggles
Conversely, UnitedHealth Group has faced significant challenges, making it the worst-performing stock in the Dow Jones Industrial Average, with share prices dropping over 40%.
Palantir’s Innovative Edge
Since launching its Artificial Intelligence Platform (AIP) just over two years ago, Palantir has seen a surge in revenue, especially by expanding into the private sector, moving beyond reliance on government contracts.
UnitedHealth’s Operational Hurdles
UnitedHealth’s challenges stem from operational missteps and leadership changes, including problems in its Medicare Advantage forecasts and unexpected issues within its pharmacy benefits management sector, resulting in a revision of its 2025 financial guidance.
Investment Considerations
Despite its current hurdles, UnitedHealth’s stock might be appealing at a forward price-to-earnings (P/E) ratio of just 13. With insiders purchasing shares post-sell-off, there is cautious optimism that the negative news is already reflected in the stock price.
Final Recommendations
In contrast, with Palantir’s stock trading at a high valuation, it may be unwise to invest now despite its promising outlook. Overall, I recommend considering a buy opportunity for UnitedHealth rather than getting caught up in Palantir’s momentum.
Adam Spatacco is invested in Palantir Technologies. The Motley Fool holds positions in and recommends Palantir Technologies and UnitedHealth Group. For more information, view their disclosure policy.
