Michael Ha 5.0 3 ideas

Alignment Health is the best health plan in the country and is well-positioned compared to others, making it a top pick.

UnitedHealth Group faces structural problems in its Optum segment, including aggressive risk adjustment practices that are being clamped down by regulators, leading to margin declines and earning headwinds; the company's data architecture is not suited for AI implementation, and divesting assets might be necessary but unlikely to make the stock attractive.

CVS Health's issues are more cyclical than structural; its Aetna insurance business and other assets are solid, and earnings power can grow from $7 to $10 EPS, making it attractive.