The Mairs & Power Balanced Fund has retained its position in UnitedHealth Group (UNH), signaling sustained confidence in the healthcare giant’s long-term prospects despite market volatility. The move underscores institutional support for UNH's diversified business model and steady revenue growth.
- Mairs & Power Balanced Fund maintains UNH as a core holding, representing over 4.2% of its portfolio
- UNH posted $163.2 billion in revenue and $14.20 EPS in fiscal 2024, up 8.3% YoY
- Optum Health and OptumRx segments contributed significantly to earnings growth
- UNH has a sustainable 44% dividend payout ratio and 15.7% projected two-year revenue growth
- Institutional confidence in UNH reflects broader sentiment toward healthcare sector resilience
- Fund’s continued stake may influence short-term trader behavior and market perception
The Mairs & Power Balanced Fund has reaffirmed its commitment to UnitedHealth Group (UNH), continuing to hold the stock as a core position within its portfolio. This decision reflects the fund’s assessment of UNH’s strategic advantages in the evolving U.S. healthcare landscape, particularly its integrated delivery network and strong performance in both commercial and government healthcare programs. UNH reported fiscal 2024 adjusted earnings per share of $14.20, up 8.3% year-over-year, driven by growth in its Optum Health and OptumRx segments. The company’s revenue reached $163.2 billion during the same period, demonstrating resilient demand across its diversified operations. These figures reinforce the fund’s view that UNH remains well-positioned to navigate regulatory and macroeconomic headwinds. The fund’s continued exposure to UNH—now exceeding 4.2% of its total portfolio—suggests confidence in the stock’s ability to deliver consistent returns. Analysts have maintained 'outperform' ratings on UNH, citing a 15.7% projected revenue growth over the next two years and a dividend payout ratio of 44%, which remains sustainable relative to industry peers. Market participants are closely monitoring institutional holdings, as shifts in large fund positions can influence short-term trading momentum. The Mairs & Power decision may encourage other equity investors to reevaluate UNH’s valuation, particularly amid broader healthcare sector consolidation and rising demand for cost-efficient delivery platforms.