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Indiana-based Elevance Health, Inc. (ELV), boasting a market cap of $124.8 billion, is a health benefits company that supports consumers, families, and communities across the entire healthcare journey, connecting them to care, support, and resources to lead healthier lives. The company provides services under the Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon brand names.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and Elevance Health fits right into that category. Its market cap exceeds this threshold, underscoring its stature and influence in the healthcare sector. Leveraging its core brands, it serves a diverse customer base across multiple states, solidifying its role as a major player in the U.S. health insurance sector.
Despite its strengths, Elevance Health has hit rough waters, with the stock currently down 2.4% from its 52-week high of $550.34, achieved on May 22. Moreover, shares of Elevance Health are up 6% over the past three months, slightly outperforming the S&P 500 Index’s ($SPX) 5% returns over the same time frame.
Longer term, ELV is up 13.9% on a YTD basis, surpassing the SPX’s 12.7% in 2024. However, the shares of the health insurance provider have gained 14.2% over the past 52 weeks, underperforming the broader SPX, which surged 25% over the same time frame.
Indicating its recent uptrend, Elevance Health has been trading above its 100-day and 200-day moving averages since mid-November, despite some fluctuations.
Elevance Health has experienced a positive trajectory this year due to its robust market presence. The company serves over 46 million medical members and holds a strong position as a Blue Cross Blue Shield licensee in 14 states. Its strategic acquisitions and expansion into government-sponsored programs such as Medicaid and Medicare Advantage plans have further strengthened its market position.
Shares of Elevance Health rose 3.2% on April 18 after the company reported strong Q1 earnings results. While its total operating revenue surged marginally year over year to $42.3 billion, its adjusted EPS rose 12.5% annually to $10.64, exceeding Wall Street estimates marginally.
Further, on May 31, Elevance Health’s shares rose 6.1%, driven by higher-than-average volume, extending its rally for a second day due to optimism over its Health Benefits and Carelon businesses. Baird analyst Michael Ha's “Outperform” rating further fueled the stock's upward trajectory.
To emphasize the stock’s price performance, it is worth noting that Elevance Health outshines its top rival, Humana Inc. (HUM). HUM stock has dipped 31.5% over the past 52 weeks and declined 23.2% on a YTD basis, contrasting sharply with ELV’s gains over the same time frame.
Moreover, analysts are optimistic about the stock's prospects. The stock has a consensus rating of “Strong Buy” from 19 analysts covering it, and the mean price target of $606.94 is a premium of 13% to current levels.
On the date of publication, Kritika Sarmah 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.
