Core Viewpoint - Elevance Health, Inc. (NYSE:ELV) is considered a strong investment opportunity, with analysts projecting significant upside potential based on recent evaluations and financial performance [1][2][3]. Group 1: Analyst Recommendations - Seth Klarman holds a $426 million stake in Elevance Health as of Q3 2025, with an average price target suggesting a 10% upside and a Street high indicating an 18% upside [1]. - TD Cowen analyst Ryan Langston reiterated a Buy recommendation and raised the target price from $380 to $400, naming Elevance Health as its "Best Idea for 2026" despite challenges in the managed care sector [2]. - TD Cowen's EPS estimate for Elevance Health was lifted to $27.25, indicating a 12.7x multiple of the 2027 EPS projection [3]. Group 2: Financial Performance - Elevance Health reported Q3 2025 operating revenue of $50.1 billion, reflecting a 12% year-over-year increase [5]. - The diluted EPS for Q3 stood at $5.32, with adjusted diluted EPS at $6.03, driven by robust growth in premiums and higher net investment income [5]. - The growth was partially offset by a decline in overall medical enrollment due to Medicaid re-verification and rising cost pressures [5]. Group 3: Risk/Reward Profile - Elevance Health is noted to have a more balanced risk/reward profile compared to other managed care companies, attributed to its stable group health plan and careful estimates regarding Medicare Advantage and Medicaid [4].

Core Insights - Elevance Health is evolving its health plans to better support members through a broader range of health situations, including cancer, mental health, and pregnancy-related concerns [1][3][13] - The company emphasizes a whole-health approach that integrates physical, behavioral, and social factors affecting health [4][12] Group 1: Health Plan Evolution - Today's health plans are expanding beyond traditional medical and physical health metrics to include preventive care, chronic disease management, and behavioral health integration [3][4] - Elevance Health's affiliated Medicare Advantage and Medicaid plans provide support for individual health and social needs, including funds for nutritious food and transportation services [5][12] Group 2: Simplifying Healthcare Experience - The company aims to simplify the healthcare experience for members and providers through accessible resources like the Sydney app [6][13] - Care coordination and personalized solutions are enhanced through programs like the Community Pharmacy Total Care (CPTC), which connects members with independent pharmacists [7][9] Group 3: Community Engagement - Elevance Health invests in community relationships to support whole health, leveraging data to address local health needs [12][13] - Initiatives include partnerships with schools for food pantries and community gardens for nutrition education, demonstrating a commitment to both individual and community health [12][13] Group 4: Personalized Support - Care managers play a crucial role in helping members navigate the healthcare system, providing personalized assistance and addressing individual needs [10][11] - The company has received recognition for its person-centered approach, particularly in Medicaid plans that offer long-term services and supports [10][14]

Core Viewpoint - AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of "a+" (Excellent) for the core Blue Cross Blue Shield (BCBS)-branded insurance subsidiaries of Elevance Health, Inc. [1] Group 1 - The FSR has been upgraded to A (Excellent) from A- (Excellent) for Elevance Health's subsidiaries [1] - The Long-Term ICR has also been upgraded to "a+" (Excellent) [1] - The ratings apply to most of Elevance's non-Blue-branded subsidiaries as well [1]

Core Insights - Elevance has appointed Amy Schulman, a former Pfizer executive, to its board of directors as part of its strategy to enhance its pharmacy services [3][8] - Schulman brings extensive experience in the healthcare sector, including her roles at Pfizer and her current position at Polaris Partners [4][5] - The addition of Schulman is expected to support Elevance's growth in its Carelon health services division, which includes its pharmacy benefit manager, CarelonRx [7][8] Company Strategy - Elevance is focusing on building its board with experienced professionals from the pharmaceutical industry to strengthen its service offerings [3][8] - The company aims to expand its pharmacy services, particularly through the Carelon division, which was rebranded in 2022 [7] Executive Background - Amy Schulman has held senior roles at Pfizer, including general counsel and president of Pfizer Nutrition, and has significant governance experience [5][6] - Her expertise in the intersection of science, technology, and patient care is seen as a valuable asset for Elevance [8]

Core Viewpoint - Elevance Health has appointed Amy Schulman as an independent director, effective January 12, 2026, to enhance its board's expertise in healthcare innovation and governance [1][2][3]. Group 1: Appointment Details - Amy Schulman will serve on the Audit and Finance Committees, bringing extensive experience in healthcare innovation and regulatory strategy [1][3]. - Schulman is currently the Managing Partner at Polaris Partners, managing over $4 billion in healthcare and technology investments [3]. Group 2: Board Strategy - The appointment is part of Elevance Health's board refreshment strategy aimed at ensuring diverse and independent leadership aligned with long-term company goals [2][4]. - The board's refreshment process is central to Elevance Health's mission of improving health outcomes while delivering sustainable, long-term value [4]. Group 3: Company Overview - Elevance Health serves 109 million consumers through a diverse portfolio of medical, pharmacy, behavioral, clinical, home health, and complex care solutions [4].

Group 1 - Elevance Health, Inc. (NYSE:ELV) is considered a cheap healthcare stock with a median price target of $394, indicating an upside potential of 19.12% [1] - TD Cowen raised the price target for Elevance Health to $400 from $380, maintaining a 'Buy' rating and highlighting it as their "Best Idea for 2026" [2] - Mizuho reduced its price target for Elevance Health to $400 from $420 while keeping an 'Outperform' rating, also lowering earnings guidance for 2026 and 2027 due to challenges in Carelon [3] Group 2 - Elevance Health operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other, and aims to simplify the healthcare system [4]

Core Viewpoint - Elevance Health has expanded access to its Virtual Assistant, a digital tool aimed at enhancing member engagement and simplifying healthcare navigation [1] Group 1: Product Features - The Virtual Assistant is designed to help members easily access information, understand their benefits, and find care with confidence [1] - It is available through the Sydney Health app and Elevance Health-affiliated health plan websites [1] - The technology utilizes conversational interfaces to improve member interaction with their health plans [1]

Group 1 - The industry survey indicates that UnitedHealth Group (UNH) and its peers, including Cigna (CI), Humana (HUM), CVS Health (CVS), and Anthem (ELV), are facing rising costs, regulatory scrutiny, and investor concerns [1][2] - Healthcare provider groups have reported that promised prior authorization reforms have not yet been realized [1][2]

Core Viewpoint - Elevance Health (ELV) stock appreciated by 6% over the past two months, indicating a potential shift in market sentiment and a possible turnaround supported by strong performance [1] Group 1: Company Performance - The stock of Elevance Health has outperformed the benchmark, suggesting positive investor sentiment and confidence in the company's future prospects [1] Group 2: Analyst Background - The analysis is conducted by a senior derivatives expert with over 10 years of experience in asset management, focusing on equity analysis, macroeconomics, and risk-managed portfolio construction [1] - The expert has a background in both institutional and private client asset management, emphasizing multi-asset strategies with a focus on equities and derivatives [1] Group 3: Investment Philosophy - The goal of the analysis is to share insights and foster a collaborative environment among investors, promoting accessible and empowering investment strategies [1]

Core Insights - Elevance Health, Inc. operates as a health benefits company with a market cap of $74.7 billion, supporting consumers and communities throughout their healthcare journey [1][2] Company Overview - Elevance employs over 100,000 associates and serves millions, addressing a full range of health needs through an integrated approach and a digital health platform [2] Stock Performance - Elevance's stock has dropped 26.2% from its 52-week high of $458.75 on April 8, but has gained 9.2% over the past three months, outperforming the Nasdaq Composite's 7.8% gains during the same period [3] - Year-to-date, Elevance's stock has declined 8.2% and 15.8% over the past 52 weeks, while the Nasdaq has surged 20.2% in 2025 and 21.1% over the past year [4] Financial Results - Despite better-than-expected Q3 results, Elevance's stock dropped 1.2% following the earnings release on October 21. The company reported a 12% year-over-year increase in topline revenue to $50 billion, exceeding expectations by 1.2% [5] - Adjusted EPS for the quarter was $6.03, a 29.9% year-over-year decline, but surpassed consensus estimates by 21.1% [5] Peer Comparison - Elevance has underperformed compared to The Cigna Group, which saw a marginal 80 basis points increase year-to-date, but performed slightly better than Cigna's 16.9% drop over the past 52 weeks [6]