NYSE:ELV
Elevance Health Inc (ELV)
Financials 
Technical Analysis 
Sep 1, 2026, 12:00 amThis summary was created by AI, based on 4 opinions in the last 12 months.
Elevance Health Inc (ELV) has been facing challenges in the health insurance sector, primarily due to the pressures from rising medical cost ratios as post-Covid procedures ramp up. Experts note that the industry is undergoing a turbulent phase, which is expected to bottom out, suggesting a patience in holding the stock. The return to normalcy after the deferral of medical claims during the pandemic has led to mixed results, particularly affecting profit margins. Despite these challenges, analysts are optimistic about future growth potential, especially with anticipated premium increases in 2026. They believe that ELV offers good value compared to competitors, such as United Health Group (UNH), and is poised for a rebound once the sector stabilizes.
Out of favour in 2023. Healthcare is one of the areas where he expects the rotation to go, big opportunity. Stock's flat for last 2 years, but EPS is up 27%. 15x PE this year, 13.5x next year. Estimates of double-digit revenue growth and 15% annual earnings growth. The insurers, in particular, are ripe for a rebound. Yield is 1%.
(Analysts’ price target is $558.02)
Gordon ReidContinues to like it. Healthcare has been in the penalty box the past year. ELV was Anthem. It insures 48 million Americans. Growing 15% annually, but trades at only 14x earnings.
Gordon ReidInsurer margins squeezed as procedures delayed by Covid now go ahead. Market's overreacted to this. Still a good long-term hold. Confident in management. Over next 5-10 years, healthcare spending will be double GDP growth.
Gordon ReidIt is both a growth and value stock being a health insurer for corporations. It also provides management for the Federal Government through Medicare and Medicaid as well as its own networks. It is slowly becoming more vertically integrated. Being more on the defensive side it helps to balance his portfolio. Buy 21 Hold 4 Sell 0
Paul MacDonaldExcellent business with good long term prospects.
Very strong balance sheet.
Large health insurance company with ~45M customers.
Strong management team that is good at running business.
Gordon ReidHealthcare notoriously left out of most recent high-beta rally. Don't give up. Don't chase low-quality, high-beta companies just because they're going up for 6 weeks. Go with good quality companies, and you will be rewarded. He's sticking with it. Demographic tailwind, 6% FCF yield, expects $33 EPS in 2023 which is a 15x PE.
Gordon ReidGordon ReidGordon Reid
Alex RuusGordon Reid'%20fill='%23ffffff'%3e%3cg%20id='Pager'%20transform='translate(423.000000,%201755.000000)'%3e%3cpath%20d='M243.295367,17.286474%20C243.68919,16.9045087%20244.327703,16.9045087%20244.721525,17.286474%20L249,21.4361302%20L253.278475,17.286474%20C253.672297,16.9045087%20254.31081,16.9045087%20254.704633,17.286474%20C255.098456,17.6684393%20255.098456,18.2877274%20254.704633,18.6696927%20L249.35654,23.856763%20C249.159628,24.0477457%20248.840372,24.0477457%20248.64346,23.856763%20L243.295367,18.6696927%20C242.901544,18.2877274%20242.901544,17.6684393%20243.295367,17.286474%20Z'%20id='Path'%20transform='translate(249.000000,%2020.500000)%20scale(-1,%201)%20rotate(-90.000000)%20translate(-249.000000,%20-20.500000)%20'%3e%3c/path%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
Trades at 4-5 multiple points lower than UNH, fundamentals are equally good.
Whole group has stalled a bit over medical cost ratios and medical costs in general. Government is repricing programs, and it's affecting margins. Companies will fight through it, trading inexpensively, very solid growth metrics. Not afraid to buy any of them, and his choice is ELV.