Elevance Health, Inc. (ELV) is scheduled to report second-quarter 2024 results on Jul 17, before the opening bell. The Zacks Consensus Estimate for second-quarter earnings per share of $10 indicates a 10.6% increase from the prior-year figure of $9.04. The estimate increased by a penny in the past week. However, the consensus estimate for second-quarter revenues of $43 billion indicates a 0.9% decline from the year-ago reported figure. Elevance Health beat the consensus estimate for earnings in all the prio ...

In its upcoming report, Elevance Health (ELV) is predicted by Wall Street analysts to post quarterly earnings of $10 per share, reflecting an increase of 10.6% compared to the same period last year. Revenues are forecasted to be $42.99 billion, representing a year-over-year decrease of 0.9%. Over the last 30 days, there has been an upward revision of 0.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their ini ...

Core Insights - The healthcare sector is experiencing a positive trend, with the Health Care Select Sector SPDR Fund (XLV) gaining 7% year to date, indicating strong investor interest in U.S. healthcare stocks [1] Company Summaries Elevance Health (ELV) - Elevance Health has made strategic acquisitions and partnerships, including the acquisition of Paragon Healthcare and a partnership with Clayton, Dubilier & Rice to enhance health outcomes [2] - The company reported a 0.9% year-over-year increase in operating revenue to $42.3 billion for Q1 2024, with adjusted diluted EPS growing 12.5% to $10.64 [16] - Wall Street projects a 12-month median price target of $604.50 for ELV stock, suggesting a 13% upside potential [10] HCA Healthcare (HCA) - HCA Healthcare's Q1 2024 financials showed revenues of $17.34 billion, an 11.2% increase from the previous year, with adjusted net income rising 3.8% to $1.44 billion [3] - The stock has surged over 24% this year, trading at 16.50x forward earnings, with analysts setting a 12-month price target of $357, indicating a 6% potential upside [6][17] - HCA is involved in a collaborative study funded by the CDC, which has led to advancements in outbreak detection and antibiotic targeting [11] McKesson Corporation (MCK) - McKesson reported total revenues of $76.4 billion for Q4 fiscal 2024, an 11% increase driven by strong U.S. pharmaceutical sales [7] - The stock has increased by 30% year to date, trading at 19.01x forward earnings, with a recommendation for potential entry below $600 [4] - McKesson is expanding its service offerings through strategic partnerships, including a 5-year contract with UnitedHealth Group and collaborations with AstraZeneca for oncology clinical trials [19]

Core Insights - Elevance Health has a market capitalization of $122.6 billion and is recognized as one of the largest publicly traded health benefits providers in the U.S. The company's prudent capital deployment history contributes to its notable price appreciation [1] - The consensus estimate for Elevance Health's full-year 2024 revenues is approximately $172.1 billion, reflecting a 1.1% increase from the previous year, supported by growth in product revenues and administrative fees [1] Financial Performance - Elevance Health's shares have increased by 11.8% year-to-date, outperforming the industry growth of 3.4%, driven by strong operations, new Medicaid contracts, and optimization efforts [5] - The Zacks Consensus Estimate for Elevance Health's 2024 earnings is $37.26 per share, indicating a 12.4% year-over-year increase, with the company having beaten earnings estimates in the last four quarters [19] Business Expansion - The expansion of services to customers and new client acquisitions positively impact Elevance Health's Carelon business, including a partnership with Clayton, Dubilier & Rice to enhance access to value-based care [2] - The company has entered an agreement to acquire Kroger's Specialty Pharmacy business, which is expected to enhance Carelon Rx's access to limited distribution drugs and expand its infusion and pharmacy businesses, with an anticipated 12% year-over-year increase in operating income from this segment in 2024 [14] Shareholder Value - Elevance Health has consistently paid dividends and repurchased shares, with $2.7 billion in share repurchases in 2023 and an additional $566 million in Q1 2024, leaving $3.6 billion remaining under its buyback authorization [8] Membership Trends - The company's total medical membership decreased by 1.2% year-over-year in 2023 and is expected to decline to 46.4 million in 2024 from 47 million in 2023, which may impact premium generation [9]

Company Overview - Humana is the second-largest Medicare Advantage firm with an 18% market share and 5.5 million enrolled members, holding the largest market share in nine states, including Florida at 31% [1] - Elevance Health has the highest Medicare Advantage market share in Ohio at 25%, with a total Medicare membership of 2.91 million [6] - UnitedHealth Group leads the Medicare Advantage market with a 29% share and 8.9 million enrolled members, nearly equal to the combined total of the second and third-largest players [14] Financial Performance - Humana reported Q1 2024 revenue from Medicare Advantage premiums of $24.44 billion, a 13.3% increase from $21.57 billion a year earlier, accounting for 82% of its total revenue [2] - Elevance Health's overall revenue for Q1 2024 was $42.58 billion, a 1.0% increase year-over-year, with an operating income of $2.94 billion, up 12.2% from Q1 2023 [6][7] - UnitedHealth's Medicaid & Retirement segment generated $35.49 billion in Q1 2024, an 8% increase, contributing 47.1% to the company's overall revenue [15] Earnings Projections - Humana expects adjusted earnings per share (EPS) of $16.00 for 2024, down from $26.09 in 2023 due to higher Medicare Advantage medical costs [3] - Elevance Health anticipates adjusted EPS of $37.20 or higher for 2024 [7] Market Valuation - Humana's shares are trading at 22.3 times the 2024 earnings estimate, slightly above its five-year average of 18.3 times [4] - Elevance Health trades at 14.3 times its projected earnings, also slightly above its five-year average [7] Industry Context - The privatization of Medicare has led to significant growth for private insurers, with approximately 50% of the $68 billion Medicare beneficiaries in the U.S. covered by private insurers [11] - Concerns have been raised about the impact of privatization on patient care, as private insurers are known to deny medical coverage to maintain lower premiums [11]

Elevance Health (ELV) shares ended the last trading session 6.1% higher at $538.48. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.5% loss over the past four weeks. Elevance Health extended its rally for the second straight day, driven by continued optimism over its Health Benefits and Carelon businesses. Baird analyst Michael Ha also initiated coverage of the stock with an Outperform rating, which further drove ...

Shares of Elevance Health, Inc. (ELV) have jumped 14.9% in the year-to-date period compared with the 4.8% growth of the industry it belongs to, thanks to its strong operations, new contracts in its Government business and optimization efforts. Factors such as premium rate increases and inorganic growth initiatives are further enhancing its results, allowing the company to raise its guidance, which has been well-received by investors. Elevance Health, with a market capitalization of $127.3 billion, is one of ...

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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium includes access to the Zacks Style Sc ...

Investors might want to bet on Elevance Health (ELV) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often ...