Elevance Health (ELV) Stock

As the stock market enters its first earnings season of 2025, companies are sharing significant news. This includes the approval of programs to buy back shares and increases in dividends.

The healthcare sector is changing quickly due to new technologies, artificial intelligence, and data analysis. Leading companies are changing the way healthcare providers handle information, offer services, and improve patient results.

ELV's results for the fourth quarter improved due to increasing premiums. However, the benefits were somewhat reduced by higher costs and a decline in Medicaid membership.

Elevance Health (ELV) reported quarterly earnings of $3.84 per share, which is higher than the Zacks Consensus Estimate of $3.80 per share. This is a decrease compared to earnings of $5.62 per share from the same period last year.

Even though Elevance Health's stock has fallen by 29%, I still recommend buying it because my discounted cash flow price target is $549.60, suggesting a potential increase of 43%. The company's move towards managed care, along with positive industry trends, supports ongoing growth in both profits and revenue, making it an attractive investment. Additionally, the risks related to Pharmacy Benefit Management are lessened by CarelonRx's varied income sources and a solid margin of safety in my analysis.

The health insurance company's adjusted earnings for the fourth quarter exceeded what analysts had predicted.

UnitedHealth, Humana, and Centene all see an increase in their stock prices before the market opens.

On Thursday, Elevance exceeded Wall Street's predictions for its quarterly profit because the health insurer spent less on medical expenses for its members than anticipated.

INDIANAPOLIS--(BUSINESS WIRE)--Elevance Health, Inc. (NYSE: ELV) has announced its results for the fourth quarter and the entire year of 2024. "We are dedicated to enhancing overall health and going beyond traditional healthcare by providing valuable services to our members and care providers, making care simple, affordable, and accessible. Our fourth quarter results show real improvements in our operations as we adapt to the changing industry landscape, and we are focused on 2025."