Stock of the Day

May 10, 2022

Elevance Health (ELV)

$392.81
-$1.62 (-0.4%)
Market Cap: $85.54B

About Elevance Health

Elevance Health, Inc., together with its subsidiaries, operates as a health benefits company in the United States. The company operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to program members; health products; an array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, life, disability, and supplemental health insurance benefits. The company operates in the pharmacy services business; and markets and offers pharmacy services, including pharmacy benefit management, as well as home delivery and specialty pharmacies, claims adjudication, formulary management, pharmacy networks, rebate administration, a prescription drug database, and member services. In addition, it provides healthcare-related services and capabilities, including utilization management, behavioral health, integrated care delivery, palliative care, payment integrity services, subrogation services, and health and wellness programs, as well as services related to data management, information technology, and business operations. Further, the company is involved in the National Government Services business. The company provides its services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brand names. The company was formerly known as Anthem, Inc. and changed its name to Elevance Health, Inc. in June 2022. Elevance Health, Inc. was incorporated in 2001 and is headquartered in Indianapolis, Indiana.

Today's Trend

Elevance Health, Inc. (NYSE: ELV) is seeing mixed investor signals, with optimism about a longer-term earnings recovery offset by cuts to near-term profit estimates. The stock has been rebounding from its 12-month low and remains above its 200-day moving average, although it is below its 50-day average.

  • Insider buying and investor support are improving sentiment. The company was named a “Pick of the Week” by Smart Insider after its CEO and chairman purchased shares, while a separate analysis said investor favor is strengthening ELV’s rebound. Such purchases can signal management confidence that the stock is undervalued. Elevance Health Pick of the Week at Smart Insider Following CEO, Chairman Share Purchases Investors’ Favour Strengthens Elevance Health’s Rebound
  • UnitedHealth Group’s results provide a favorable industry read-through. Improved margins, a lower medical-cost ratio and raised earnings guidance at UnitedHealth suggest that health insurers may be gaining better control over medical costs, potentially supporting expectations for an Elevance turnaround. UnitedHealth Just Gave Wall Street a Clearer Turnaround Signal
  • Long-term earnings forecasts were broadly raised. Zacks increased its FY2026 EPS estimate to $27.06, FY2027 to $28.83 and FY2028 to $32.49, above its previous forecasts and roughly consistent with or above the current-year consensus of $27.04.
  • Recent trading has lagged peers. ELV underperformed competitors in the latest reported session, indicating that investors remain selective despite the broader recovery narrative. Elevance Health Inc. stock underperforms Wednesday when compared to competitors
  • Near-term earnings expectations were reduced. Zacks cut Q3 2026 EPS to $4.60 from $5.10 and Q4 EPS to $2.43 from $2.95, raising concerns about medical-cost pressure and near-term profitability.

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