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Indianapolis-based Elevance Health, Inc. (ELV) operates as a health benefits company. With a market cap of $123.3 billion, Elevance Health operates through four segments: health benefits, CarelonRx, Carelon Services, and corporate & other. Its primary offerings include healthcare products, insurance products, managed care services, pharmacy services, and more. Elevance Health is expected to announce its Q2 earnings before the markets open on Wednesday, July 17.
Ahead of the event, analysts expect Elevance Health to report a profit of $9.99 per share, up 10.5% from $9.04 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS projections for the past four quarters.
Its adjusted EPS for the last reported quarter increased by 12.5% annually to $10.64 per share, exceeding the consensus estimate by 1%. The strong Q1 earning was fueled by lower-than-anticipated expenses, strategic premium rate hikes, and impressive growth in the Carelon brand.
Looking ahead to fiscal 2024, analysts project Elevance Health to report an EPS of $37.25, up 12.4% from $33.14 in fiscal 2023. Its fiscal 2025 EPS is expected to grow 11.8% annually to $41.65.
ELV stock has gained 12.5% on a YTD basis, trailing behind the S&P 500 Index’s ($SPX) 16.7% gains but outperforming the S&P 500 Healthcare Sector SPDR’s (XLV) 5.9% returns over the same time frame.
Despite lagging behind the broader market, Elevance Health has been riding a wave of success in 2024, outshining the broader healthcare sector. With over 46 million medical members and a stronghold as a Blue Cross Blue Shield licensee in 14 states, its strategic acquisitions and expansion into government-sponsored programs like Medicaid and Medicare Advantage have bolstered its market presence. The stock jumped 3.2% on April 18 following fiscal Q1 earnings results and remained in green for the five subsequent trading sessions.
The consensus opinion on Elevance Health stock is bullish, with a “Strong Buy” rating overall. Out of the 20 analysts covering the stock, 17 recommend a “Strong Buy” rating, two suggest a “Moderate Buy,” and one analyst is playing it safe with a “Hold” rating. Over the past three months, two new recommendations have been added to the consensus — one “Strong Buy” and one “Moderate Buy.”
The average target price for Elevance Health is $608.84, indicating a potential upside of 14.8% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
