Core Insights - Elevance Health, Inc. (NYSE:ELV) is highlighted as one of the stocks with the lowest P/E ratios on the NYSE [1] - Cantor Fitzgerald has reaffirmed its Overweight rating and set a price target of $400 for Elevance Health, indicating confidence in the company's future performance [2] - The company’s weighted-average estimate for 2026 Marketplace rates is only about 40 basis points away from proposed rates, with most initial state authorizations aligning closely with payor plans [2] - Less than 25% of members currently have final rates, and political factors may still influence outcomes related to the CMS Marketplace Integrity & Affordability Final Rule [3] - Elevance Health has reiterated its 2025 earnings outlook, projecting a benefit expense ratio near 90% and earnings of $24.10 per diluted share, with an adjusted basis projection of approximately $30.00 [4] Business Segments - Elevance Health operates through four main business segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other [4]

Core Viewpoint - Elevance Health is set to release its third quarter 2025 financial results on October 21, 2025, at 6:00 a.m. EDT, followed by a management conference call at 8:30 a.m. EDT to discuss the results and outlook [1] Financial Results Release - The financial results will be available on October 21, 2025, at 6:00 a.m. EDT [1] - A conference call will take place at 8:30 a.m. EDT on the same day to review the results and future outlook [1] Access Information - Participants are advised to access the conference call at least 15 minutes prior to its start [1] - Domestic access number: 888-947-9963 with access code 3972058 [1] - International access number: 312-470-0178 with access code 3972058 [1]

Core Insights - Artisan Partners' Artisan Select Equity Fund reported returns of 6.77%, 6.76%, and 6.80% for its Investor Class, Advisor Class, and Institutional Class respectively in Q2 2025, underperforming the S&P 500 Index which returned 10.94% [1] Company Analysis: Elevance Health, Inc. - Elevance Health, Inc. has experienced significant stock price pressure, with a one-month return of -0.01% and a 52-week decline of 38.73%, closing at $318.61 per share with a market capitalization of $71.744 billion as of September 29, 2025 [2] - The decline in Elevance's Medicaid business is attributed to a drop in its contribution to normalized profits from approximately 15% to 5% over the past year, largely due to enrollment volatility caused by the COVID-19 pandemic [3] - The Medicaid program saw a 32% increase in membership during the pandemic, peaking at 95 million enrollees, followed by a 17% decline as reverification resumed, leading to a shift in the health profile of remaining enrollees and squeezing Medicaid margins [3] - State-level premium rates for Medicaid are currently being renegotiated higher, which is expected to normalize margins for Elevance Health as the company moves through 2025 and 2026 [3]

Core Insights - Elevance Health, Inc. is a prominent healthcare company with a market capitalization of $71.7 billion, serving approximately 46.8 million members through various health plans and services [1] Financial Performance - The company is set to announce its fiscal Q3 earnings for 2025 on October 21st, with analysts projecting a profit of $5.01 per share, representing a 40.1% decline from $8.37 per share in the same quarter last year [2] - For the current year, analysts expect Elevance Health to report an EPS of $29.89, down 9.5% from $33.04 in fiscal 2024, but anticipate a rebound in FY2026 with a projected EPS of $30.96, reflecting a 3.6% year-over-year increase [3] Stock Performance - Shares of Elevance Health have decreased by 38.8% over the past 52 weeks, significantly underperforming compared to the S&P 500 Index, which has increased by 15.6%, and the Health Care Select Sector SPDR Fund, which has seen an 11.5% loss during the same period [4] Market Sentiment - Wall Street analysts maintain a "Moderate Buy" rating for Elevance Health, with 13 out of 21 analysts recommending "Strong Buy," one suggesting "Moderate Buy," six indicating "Hold," and one advising "Strong Sell." The mean price target for the stock is $359.06, suggesting a potential upside of 12.7% from current levels [6] Regulatory Environment - On September 25, shares of Elevance Health fell by 3% following the U.S. Commerce Department's initiation of a national security investigation into medical equipment imports, which could lead to new tariffs and create uncertainty within the healthcare sector [5]

Core Insights - The article emphasizes the importance of understanding macro trends and their influence on asset prices and investor behavior, particularly in the context of equity analysis and research [1]. Group 1: Professional Background - The expert has over 10 years of experience in asset management, focusing on equity analysis, macroeconomics, and risk-managed portfolio construction [1]. - The professional background includes advising on and implementing multi-asset strategies, with a strong emphasis on equities and derivatives [1]. Group 2: Investment Philosophy - The goal of sharing insights is to make investing accessible, inspiring, and empowering for fellow investors [1]. - The expert encourages building confidence in long-term investing through shared knowledge and collaboration [1]. Group 3: Market Analysis Focus - The analysis includes close monitoring of EU and US central bank policies, sector rotation, and sentiment dynamics to construct actionable investment strategies [1]. - The expert has navigated various market conditions over the past decade, indicating a robust understanding of market dynamics [1].

Core Insights - Elevance Health, Inc. (NYSE:ELV) is reaffirming its full-year 2025 earnings guidance, expecting earnings of approximately $24.10 per diluted share, which includes about $5.90 per share in net unfavorable items, leading to adjusted earnings of roughly $30.00 per diluted share when excluding these items [2][3] Group 1 - The company anticipates a benefit expense ratio close to 90% for the year, based on current market conditions, regulatory factors, and medical cost trends [3] - Elevance Health operates under several brands, including Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon, providing health benefits, pharmacy, and healthcare services across the U.S. [3] - Elevance Health is recognized as one of the best Roth IRA stocks to invest in currently [1][3]

Core Insights - Elevance Health, Inc. is restructuring its Medicare strategy by exiting underperforming Medicare Advantage markets and the standalone Part D segment to protect profitability and enhance competitiveness [1][8] - The company is focusing resources on Medicare Advantage HMO and dual-special needs plans (D-SNPs), which yield stronger margins and consistent enrollment growth [2][8] - The exit will affect approximately 150,000 of Elevance's 2.3 million Medicare Advantage members, reflecting a broader industry trend of insurers recalibrating to safeguard margins amid rising medical costs [3][5] Financial Outlook - Elevance has revised its 2025 adjusted EPS forecast to about $30, down from a previous range of $34.15–$34.85, in response to increasing medical costs [4][8] - The Zacks Consensus Estimate for Elevance's 2025 earnings is projected at $29.88 per share, indicating a 9.6% decline from the previous year [11] - The company's trailing 12-month return on capital is 10.4%, significantly above the industry average of 7.4%, suggesting it can navigate challenges effectively [2] Market Position - Elevance's exit from the standalone Part D segment will reduce choices for beneficiaries, as it ranks as the sixth-largest provider in this space [5] - Other major players like UnitedHealth Group and Molina Healthcare have also adjusted their forecasts for 2025, indicating a trend across the industry [4] - Elevance's stock has declined by 14.6% year-to-date, compared to a 2.9% decline in the industry [7] Valuation Metrics - Elevance trades at a forward price-to-earnings ratio of 10.06, lower than the industry average of 14.90, and currently holds a Value Score of A [10]

Core Insights - Elevance Health Inc. is recognized as one of the best inexpensive stocks to buy according to hedge funds [1] - The company is reducing its Medicare footprint to enhance profitability, particularly in its Medicare Advantage and standalone Medicare Part D plans [1][2] Group 1: Strategic Decisions - Elevance's CFO announced at the Wells Fargo Healthcare Conference that the company will exit certain Medicare Advantage plans with unsustainable long-term economics, impacting approximately 150,000 of its 2.3 million MA members [2][3] - The company is fully exiting the standalone Medicare Part D plan market, where it is the sixth-largest provider with 400,000 members, to focus on higher-margin Medicare Advantage and dual special needs plans [3] Group 2: Market Position - Elevance is the fourth-largest Medicare Advantage payer in the US and is prioritizing plans with narrower networks, such as Health Maintenance Organizations, to help members manage costs [3]

Group 1 - The health insurance sector is currently facing historic pressure, which may present generational buying opportunities for patient investors [1] - Most insurers have been caught off guard by recent challenges in the market [1]

Core Insights - Elevance Health, Inc. is transitioning from a traditional health insurer to a comprehensive healthcare solutions provider, focusing on strategic partnerships and integrated care models [1][8] - The company is expanding into primary care, digital health, and pharmacy services to offer holistic health solutions that address broader health determinants [2][8] - Elevance Health's initiatives aim to reduce hospitalizations and enhance care accessibility through AI-enabled platforms and telehealth services [3][4] Membership and Revenue Growth - Medicare Advantage memberships increased by 11% year-over-year in Q2 2025, while individual membership grew by 5.2% [4][8] - Total revenues rose by 13.4% year-over-year in the same quarter [4][8] Competitive Landscape - Competitors like UnitedHealth Group and Humana are also focusing on value-based care, with UnitedHealth's Optum division reporting a 5.8% revenue growth in the first half of 2025 [5] - Humana's total adjusted revenues increased by 9.9% year-over-year in the first half of 2025 [6] Valuation and Earnings Estimates - Elevance Health's shares have declined by 14.9% year-to-date, contrasting with a 0.2% decline in the industry [7] - The company trades at a forward price-to-earnings ratio of 9.88, below the industry average of 15.23 [9] - The Zacks Consensus Estimate for Elevance Health's 2025 earnings is $29.88 per share, indicating a 9.6% decline from the previous year [11]