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Valued at a market cap of $84.3 billion, Elevance Health, Inc. (ELV) is a managed healthcare company that offers a broad spectrum of health benefits and services, including medical, pharmacy, dental, vision, behavioral health, Medicare, and Medicaid plans. The Indianapolis, Indiana-based company is expected to announce its fiscal Q2 earnings for 2025 on Wednesday, Jul. 16.
Prior to this event, analysts project this health insurance company to report a profit of $9.29 per share, down 8.2% from $10.12 per share in the year-ago quarter. The company has met or surpassed Wall Street’s bottom-line estimates in three of the last four quarters, while missing on another occasion. Its earnings of $11.97 per share in the previous quarter aligned with the consensus estimates.
For the full year, analysts expect ELV to report EPS of $34.42, up 4.2% from $33.04 in fiscal 2024. Furthermore, its EPS is expected to grow 13.8% year over year to $39.16 in fiscal 2026.
Shares of Elevance Health have declined 30.2% over the past 52 weeks, considerably lagging behind both the S&P 500 Index's ($SPX) 12.1% uptick, and the Health Care Select Sector SPDR Fund’s (XLV) 8.1% loss over the same time frame.
On Apr. 22, shares of Elevance Health rose 2.3% as it delivered better-than-expected Q1 results. The company’s operating revenue grew 15.4% year-over-year to $48.8 billion and surpassed the consensus estimates by almost 6%. Moreover, its adjusted EPS of $11.97 improved by 10.5% from the same period last year. This impressive performance was driven by higher premium yields in its health benefits segment, benefits from acquisitions completed in the past year, and strong growth in its CarelonRx product revenue. Ongoing cost management by the company further supported its profitability.
Wall Street analysts are highly optimistic about ELV’s stock, with a “Strong Buy" rating overall. Among 20 analysts covering the stock, 15 recommend "Strong Buy," one suggests a “Moderate Buy,” and four indicate “Hold.” The mean price target for ELV is $492.94, which indicates a 32.1% potential upside from the current levels.
