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Headquartered in Indianapolis, Indiana, Elevance Health, Inc. (ELV) is a prominent player in the healthcare industry, providing comprehensive health solutions to millions of individuals across the U.S. With a market cap of $126.58 billion, Elevance Health is known for its innovative healthcare services, including medical, pharmacy, behavioral, clinical, and wellness solutions.
Shares of ELV have underperformed the broader market over the past year. The stock has gained 21.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.7%. In 2024, the stock is up 16.3%, while the SPX has gained 18% on a YTD basis.
Narrowing the focus, ELV outperformed when compared to the iShares U.S. Healthcare Providers ETF (IHF). The exchange-traded fund has gained 9.9% on a YTD basis.
On Jul. 17, ELV reported Q2 earnings. The company reported a profit of $2.30 billion, or $10.12 per share, surpassing Wall Street expectations of $9.99 per share. Also, the company's revenue of $43.22 billion exceeded analysts’ estimates of $42.99 billion. Elevance Health shares declined by over 5% after the company projected a full-year adjusted EPS of $37.20, slightly below the consensus estimate of $37.28.
For the current fiscal year, ending in December, analysts expect ELV’s EPS to grow 12.4% to $37.25 on a diluted basis. The company's earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 20 analysts covering ELV stock, the consensus rating is a “Strong Buy.” That’s based on 16 “Strong Buy” ratings, two “Moderate Buys,” and two “Holds.”
On Aug. 13, David Windley from Jefferies maintained a “Buy” rating on Elevance Health, with a price target of $600, which indicates a 9.4% upside from the current levels.
The mean price target of $601.21 represents a 9.6% premium to ELV’s current price levels. The Street-high price target of $655 suggests an upside potential of 19.4%.
On the date of publication, Rashmi Kumari 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.
