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Elevance Looks Cheap Now: But is it Time to Buy or Dodge?
ZACKS· 2025-05-28 14:16
Core Viewpoint - Elevance Health, Inc. is trading at a discount with a forward 12-month P/E ratio of 10.35X, below its five-year median of 13.46X and the industry average of 13.86X, indicating attractive valuation compared to peers [1][2] Group 1: Growth Drivers - Elevance is positioned for sustained growth through strategic initiatives in its commercial and government segments, with commercial memberships growing 4.6% and 1% year-over-year in 2024, and a notable 14.2% increase in its Individual Commercial business in Q1 2025 [4][5] - The company has streamlined its government business by exiting underperforming markets, enhancing efficiency and potential for growth in Medicare Advantage in underpenetrated states [5] - Elevance's Return on Invested Capital stands at 9.94%, significantly above the industry average of 5.79%, showcasing superior capital deployment capabilities [6] Group 2: Shareholder Returns - The company is committed to returning capital to shareholders, having repurchased $880 million worth of shares in Q1 2025, with $8.4 billion remaining under its buyback authorization, and a dividend yield of 1.82%, exceeding the industry average of 1.40% [7] Group 3: Market Performance - Despite broader market challenges, Elevance shares have gained 1.9% year-to-date, outperforming both the industry and the S&P 500, while peers UnitedHealth and Humana have experienced declines [8] Group 4: Financial Estimates - The Zacks Consensus Estimate for Elevance's EPS indicates a 4.2% increase for 2025 and a 13.8% increase for 2026, with revenue estimates suggesting an 11.2% increase for 2025 and a 7.1% increase for 2026 [11] Group 5: Challenges and Risks - Elevance faces challenges including a decline in Medicaid and Medicare Supplement membership, which could lead to overall membership losses and reduced revenues [12] - Rising medical costs are a significant concern, with the benefit expense ratio increasing from 87% in 2023 to an estimated 88.7% in 2025, indicating pressure on earnings [13] - Regulatory uncertainties, particularly related to the Pharmacy Benefit Management industry, pose additional risks for Elevance [14]
CLASS ACTION REMINDER: Berger Montague Advises Elevance Health (NYSE: ELV) Investors to Inquire About a Securities Fraud Lawsuit by July 11, 2025
GlobeNewswire News Room· 2025-05-28 13:11
Core Viewpoint - A securities class action lawsuit has been filed against Elevance Health, Inc. for alleged misrepresentation of financial conditions during the Class Period from April 18, 2024, to October 16, 2024 [1][2]. Company Overview - Elevance Health, Inc. is a healthcare company based in Indianapolis, providing health insurance plans and administering Medicaid benefits for eligible beneficiaries [3]. Allegations and Financial Impact - The lawsuit claims that Elevance misled investors about its monitoring of cost trends related to the Medicaid "redetermination" process, assuring them that premium rates were sufficient despite rising Medicaid expenses [4]. - The redetermination process led to a significant increase in the utilization of Medicaid members, as healthier members were being removed from the program, which was not reflected in Elevance's financial guidance or rate negotiations [5]. - On July 17, 2024, Elevance disclosed an expected increase in Medicaid utilization, resulting in a stock price drop of $32.21 per share, or 5.8%, closing at $520.93 [6]. - On October 17, 2024, Elevance reported Q3 2024 earnings, missing EPS expectations by $1.33, or 13.7%, and lowered its EPS guidance for 2024 from $37.20 to $33.00, or 11.3%, due to ongoing Medicaid issues [7]. - Following this announcement, Elevance's stock price fell by $52.61 per share, or 10.6%, closing at $444.35 [8].
ELV Class Action Lawsuit – Shareholders Should Contact Robbins LLP for Information About Leading the Class Action Against Elevance Health, Inc.
GlobeNewswire News Room· 2025-05-27 22:12
Core Viewpoint - A class action lawsuit has been filed against Elevance Health, Inc. for allegedly failing to disclose the impact of Medicaid redetermination on its business prospects, leading to significant financial misrepresentation [1][2]. Group 1: Allegations and Impact - The lawsuit claims that Elevance Health misled investors by stating that they were monitoring Medicaid cost trends and that premium rates were sufficient to manage risks, despite rising Medicaid expenses [2]. - The company allegedly failed to disclose that the Medicaid redetermination process was resulting in a higher acuity and utilization of its Medicaid members, which was not reflected in their financial guidance for 2024 [2]. - Following the revelation of increased utilization expectations in the Medicaid sector, Elevance's stock price dropped by $32.21 per share, or 5.8%, indicating a significant market reaction to the disclosed information [3]. Group 2: Legal Proceedings - Shareholders interested in participating in the class action must file their papers by July 11, 2025, to serve as lead plaintiff, representing the interests of other class members [4]. - Shareholders are not required to participate in the case to be eligible for recovery, allowing them to remain absent class members if they choose [4]. Group 3: Company Background - Robbins LLP, the law firm handling the case, has been focused on shareholder rights litigation since 2002, aiming to help shareholders recover losses and improve corporate governance [5].
ELV SECURITIES NOTICE: Did Elevance Health, Inc. Commit Securities Fraud? Contact BFA Law about the Class Action Lawsuit by July 11
GlobeNewswire News Room· 2025-05-27 12:46
NEW YORK, May 27, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Elevance Health, Inc. (NYSE: ELV) and certain of the Company’s senior executives for potential violations of the federal securities laws. If you invested in Elevance you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/elevance-health-inc. Investors have until July 11, 2025, to ask the Court to be appointed to ...
ELV FRAUD: Suffer Losses on Elevance Health, Inc.? You may have been Affected by Fraud and are Urged to Contact BFA Law (NYSE:ELV)
GlobeNewswire News Room· 2025-05-25 11:42
Core Viewpoint - A lawsuit has been filed against Elevance Health, Inc. and certain senior executives for potential violations of federal securities laws, specifically related to the management of Medicaid benefits during the COVID-19 pandemic [1][2]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Southern District of Indiana, captioned Miller v. Elevance Health, Inc., et al., No. 25-cv-0092 [2]. - Investors who purchased Elevance common stock are encouraged to seek additional information and may have until July 11, 2025, to request to lead the case [2]. Group 2: Background on Medicaid Management - Elevance provides health insurance plans, including contracts with states to administer Medicaid benefits [3]. - The federal government paused Medicaid eligibility reviews during COVID-19, which resumed in 2023, leading to increased acuity and utilization among Elevance's Medicaid members [3][5]. Group 3: Financial Impact and Stock Performance - Elevance had previously stated it was monitoring cost trends related to Medicaid redetermination, claiming that negotiated rates were sufficient [4]. - Following the announcement of increased utilization in Medicaid on July 17, 2024, Elevance's stock price fell by $32.21, nearly 6%, from $553.14 to $520.93 per share [6]. - On October 17, 2024, Elevance reported Q3 2024 results, missing EPS expectations by $1.33 (13.7%) due to elevated medical costs, resulting in a stock price decline of $52.61, nearly 11%, from $496.96 to $444.35 per share [7].
UnitedHealth vs. Elevance: Which Healthcare Stock Has More Upside?
ZACKS· 2025-05-23 16:15
Core Viewpoint - UnitedHealth Group and Elevance Health are two leading healthcare plan providers in the U.S., both recognized for their scale, diversified offerings, and solid financial performance, making them attractive defensive investments in volatile markets [1][2]. Group 1: UnitedHealth Group (UNH) - UnitedHealth is a dominant player in the industry, benefiting from its extensive scale and operational efficiency through its Optum unit, which supports its resilience against macroeconomic pressures [3]. - The company has faced significant challenges, with its market cap dropping from $566.7 billion in November 2024 to $269.1 billion currently, alongside missing earnings and revenue estimates due to lower premiums and high medical costs [4]. - A leadership change has occurred, with CEO Andrew Witty stepping down and former CEO Stephen Hemsley returning, amidst a criminal investigation related to potential Medicare fraud, raising investor concerns [5]. - Despite these challenges, UnitedHealth's diversification across various insurance segments and consistent free cash flow provide a buffer against sector-specific risks, with a dividend yield of 2.83% [6]. Group 2: Elevance Health (ELV) - Elevance Health, while smaller, is demonstrating stronger operational momentum, particularly in government-backed plans like Medicaid and Medicare Advantage [7]. - The company outperformed estimates in its latest quarterly report, with a 14.5% year-over-year increase in premiums to $40.9 billion, and improved operating expense ratio of 10.9% compared to UNH's 12.4% [8][9]. - Elevance's long-term debt to capital ratio of 39.7% is lower than UnitedHealth's 42.7%, indicating less leverage and lower vulnerability to high-interest rates [10]. Group 3: Comparative Analysis - Zacks Consensus Estimates currently favor Elevance, with upward revisions in EPS estimates for the current year, while UnitedHealth has seen multiple downward revisions [11]. - In terms of valuation, Elevance trades at a forward P/E of 10.60, compared to UnitedHealth's 11.76, suggesting a more attractive risk-reward profile for Elevance [12]. - Year-to-date, Elevance shares have gained 4.2%, outperforming both the industry and S&P 500, while UnitedHealth shares have declined by 41.4% due to concerns over medical costs and investigations [14]. Conclusion - Both companies are established players in the healthcare sector, with UnitedHealth offering scale and diversification but facing short-term challenges, while Elevance shows stronger execution and a more favorable growth narrative [16]. - Elevance Health is positioned as the more promising investment opportunity currently, supported by better valuation, earnings revisions, and price performance [17].
ELV FRAUD ALERT: Lose Money when Elevance Health, Inc. Stock Dropped 11%? Contact BFA Law by July 11 Class Action Deadline (NYSE:ELV)
GlobeNewswire News Room· 2025-05-23 12:07
NEW YORK, May 23, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Elevance Health, Inc. (NYSE: ELV) and certain of the Company’s senior executives for potential violations of the federal securities laws. If you invested in Elevance you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/elevance-health-inc. Investors have until July 11, 2025, to ask the Court to be appointed to ...
Robbins LLP Reminds Elevance Health, Inc. Stockholders of the Class Action Against ELV – Contact Us for Information
GlobeNewswire News Room· 2025-05-22 20:12
Core Viewpoint - A class action lawsuit has been filed against Elevance Health, Inc. for allegedly failing to disclose the impact of Medicaid redetermination on its business prospects, leading to significant financial misrepresentation during the class period from April 18, 2024, to October 16, 2024 [1][2]. Group 1: Allegations and Financial Impact - The complaint alleges that Elevance Health misled investors by claiming they were monitoring cost trends related to Medicaid redetermination and that premium rates were sufficient to manage associated risks, despite rising Medicaid expenses [2]. - The company assured investors that the acuity mix shift in its Medicaid business was within expected bounds, while in reality, the redetermination process resulted in a higher number of sicker patients remaining on Medicaid, leading to increased per-patient costs not reflected in financial guidance [2]. - On July 17, 2024, Elevance disclosed an expectation of increased utilization in Medicaid, which caused its stock price to drop by $32.21 per share, or 5.8%, from $553.14 to $520.93 [3]. Group 2: Class Action Participation - Shareholders interested in serving as lead plaintiffs in the class action must file their papers by July 11, 2025, although participation is not required to be eligible for recovery [4]. - The law firm Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses for representation [5].
2025年《财富》全球最具影响力的商界女性
财富FORTUNE· 2025-05-22 14:07
今年,这份全球商界女性领袖的权威榜单迈入第28个年头。这份榜单既揭晓了当下最具有影响力的领导 者,也展示了未来有望攀登更高峰的潜力者。 "全球最具影响力的商界女性榜单"历来以数据为导向,依据高管所在企业规模、运营状况或损益表进行 评选,而今年的评选更是强化了数据维度。《财富》杂志首次采用更复杂的评分系统,除了基于业务指 标(涵盖12个月和三年周期数据),还结合高管的影响力、创新能力、职业轨迹以及为改善业务所做的 努力等维度为候选人赋值。该系统更倾向于首席执行官群体,因此,部分担任其他高管职位的上榜者在 榜单上的排名较往年有所下滑。 随着更多女性执掌举足轻重的企业,这份榜单的竞争变得更加激烈。今年排名前三位的分别是:蝉联榜 首的通用汽车公司首席执行官玛丽·巴拉(Mary Barra)、埃森哲首席执行官朱莉·斯威特(Julie Sweet) 和花旗集团首席执行官简·弗雷泽(Jane Fraser)。此外,还有来自沃尔玛、Netflix等全球顶尖企业的资 深领导者。 略超半数的上榜女性在美国工作,美国在推动女性登上企业最高层方面仍然大幅领先其他国家;其余48 位上榜者来自其他国家,覆盖19个国家和地区。紧随美国之后 ...
ELEVANCE HEALTH SECURITIES FRAUD NOTICE: Berger Montague Informs Elevance Health (NYSE: ELV) Investors of Securities Fraud Lawsuit
Prnewswire· 2025-05-22 12:44
Core Viewpoint - A securities class action lawsuit has been filed against Elevance Health, Inc. for the period between April 18, 2024, and October 16, 2024, due to financial disclosures that negatively impacted the company's stock price [1][5]. Company Overview - Elevance Health, Inc. is a healthcare company based in Indianapolis, providing health insurance plans and administering Medicaid benefits for eligible beneficiaries [3]. Financial Disclosures - On July 17, 2024, Elevance announced an expected increase in Medicaid utilization, leading to a stock price decline of $32.21 per share, or 5.8%, closing at $520.93 [4]. - On October 17, 2024, Elevance reported Q3 2024 financial results, missing EPS expectations by $1.33, or 13.7%, due to elevated medical costs in its Medicaid business. The company also lowered its EPS guidance for 2024 from $37.20 to $33.00, or 11.3% [5]. - Following the October announcement, Elevance's stock price fell by $52.61 per share, or 10.6%, closing at $444.35 [6].