Elevance Health, Inc. (NYSE: ELV), a prominent player in the healthcare plans industry, continues to command investor attention with its robust market presence and consistent growth trajectory. Headquartered in Indianapolis, Indiana, Elevance Health, formerly known as Anthem, Inc., has evolved significantly since its rebranding in June 2022. With a market capitalization of $83.95 billion, Elevance Health stands as a formidable entity in the U.S. healthcare sector.
At its current trading price of $372.83, Elevance Health is positioned within its 52-week range of $274.66 to $452.69. The stock has experienced marginal movement recently with a price change of $9.32 (0.03%). This stability is noteworthy, especially considering the healthcare industry’s volatility. Analysts have set a target price range between $320.00 and $507.00, with an average target of $394.60, suggesting a potential upside of 5.84% for the stock.
The company’s forward price-to-earnings (P/E) ratio of 13.87 provides a glimpse into its attractive valuation, particularly when compared to the broader market’s valuation benchmarks. Elevance Health’s earnings per share (EPS) of $24.53 underscores its profitability, complemented by a return on equity (ROE) of 12.57%, demonstrating efficient management and strong financial health.
Revenue growth stands at an impressive 12.30%, reflecting the company’s ability to capitalize on the increasing demand for comprehensive healthcare solutions. Elevance Health’s diverse portfolio spans health benefits, pharmacy services, and healthcare-related services, including specialty care and virtual care, under renowned brands like Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon.
The company’s free cash flow of approximately $5.12 billion further strengthens its financial flexibility, enabling strategic investments and shareholder returns. Elevance Health maintains a dividend yield of 1.83%, with a conservative payout ratio of 27.55%, which indicates a sustainable dividend policy that may appeal to income-focused investors.
From an analyst perspective, Elevance Health is favorably viewed, with 14 buy ratings and 7 hold ratings, and no sell recommendations. This consensus reflects confidence in the company’s strategic direction and its capacity to navigate the complexities of the healthcare landscape.
Technical indicators also present a positive outlook for Elevance Health. The stock’s 50-day moving average of $337.17 and 200-day moving average of $352.02 suggest a bullish trend, further supported by a relative strength index (RSI) of 56.84, indicating that the stock is neither overbought nor oversold. The moving average convergence divergence (MACD) of 8.85, compared to its signal line of 6.62, supports a positive momentum.
Elevance Health’s comprehensive service offerings and innovative approach to healthcare solutions position it well for sustained growth. As it continues to enhance its service capabilities and expand its market reach, Elevance Health remains a compelling option for investors seeking exposure to the evolving healthcare sector. With its potential upside and solid financial performance, Elevance Health is well-poised to deliver value to its shareholders in the coming quarters.
