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Elevance Health, Inc. (ELV), with a market cap of $127.2 billion, operates as a major health benefits provider. Based in Indianapolis, Indiana, the company delivers a broad spectrum of health plans, pharmacy services, and healthcare solutions through its various business segments.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Elevance Health fits this criterion perfectly, exceeding the mark. Elevance Health is renowned for being the largest for-profit managed healthcare company within the Blue Cross Blue Shield Association, offering a comprehensive range of health insurance services to millions of members through its diverse brand portfolio.
However, the health insurer has fallen 3.5% from its 52-week high of $567.26, reached on Sep. 3. Shares of ELV are up 1.3% over the past three months, closely matching the broader Nasdaq Composite's ($NASX) 1.4% gain over the same time frame.
Longer term, ELV is up 16.6% on a YTD basis, outpacing the NASX's 13.8% gains. Moreover, shares of Elevance Health have surged 23.7% over the past 52 weeks, compared to NASX's 21.8% gains over the same time frame.
To confirm the bullish price trend, ELV has been trading above its 200-day moving average since November last year, and it has remained above its 50-day moving average during the period despite some fluctuations.
Despite beating Q2 earnings results on Jul. 17, shares of Elevance Health dropped 5.8% due to concerns over rising medical costs and higher-than-expected claims from Medicaid enrollees. The company revised its full-year medical loss ratio forecast to the upper end of its range, driven by increased healthcare utilization among sicker patients.
However, its rival, UnitedHealth Group Incorporated (UNH), has outperformed ELV over the past 52 weeks with a 26% gain. Though, UNH is up 15.1% on a YTD basis, slightly lagging behind ELV’s YTD gain.
Due to the stock’s outperformance relative to the broader market, analysts are bullish, with a consensus rating of "Strong Buy" from 20 analysts. The mean price target of $605.17 is a premium of 10.6% to current levels.
On the date of publication, Sohini Mondal 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.
