Elevance Health is still a good investment because of its solid fundamentals. Additionally, it has proven to be stable during trade disputes. Changes in regulations from Trump's time in office and the use of AI are important elements that will affect ELV's growth and efficiency moving forward.
Elevance Health (ELV) experienced a significant rise in its stock price during the last trading session, with trading volume exceeding the usual amount. Recent changes in earnings estimates may lead to additional price growth in the near future.
Elevance Health, a health insurer and pharmacy benefit manager, is currently facing market rejection because of increased political uncertainty. In my previous article, I discussed the challenges and risks, but in this update, I will share three reasons why I believe investing in ELV stock could be a good idea. Elevance is financially strong and highly profitable, which provides a significant safety margin from an operational standpoint.
Dividend growth investing can provide high-quality stocks that have small dividends increasing by 10-15%, creating great investment chances. Investors can rely on diversified, large-cap companies that show strong revenue, earnings, and dividend growth. The companies I will discuss have significant insider ownership, dependable growing dividends, and the possibility of share buybacks, which can lead to stability and strong capital gains.
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.