Core Insights - Elevance Health, Inc. (ELV) has a market capitalization of $72.1 billion and operates a diverse portfolio of health plans, including commercial, Medicaid, and Medicare offerings, along with pharmacy and care management services through its Carelon division [1] Stock Performance - ELV shares have underperformed the broader market, declining 19% over the past 52 weeks and 12% year-to-date, while the S&P 500 Index has returned 12.3% over the past year [2] - Compared to the Health Care Select Sector SPDR Fund (XLV), which fell 7.5% over the past 52 weeks, ELV's performance has been notably weaker [3] Earnings Report - In the third quarter earnings released on October 21, ELV reported operating revenue of $50.1 billion and adjusted diluted EPS of $6.03, both exceeding expectations. However, operating cash flow was $4.2 billion year-to-date, which is 0.8 times net income and $0.9 billion lower than the previous year, primarily due to a payment related to the Provider Settlement Agreement [4] Analyst Expectations - For the current year ending in December, analysts project a 9.2% decline in ELV's EPS to $30. The company has met or exceeded analysts' consensus estimates in three of the last four quarters [5] - The consensus rating among 21 analysts covering the stock is a "Moderate Buy," with 12 "Strong Buy" ratings, one "Moderate Buy," and eight "Holds" [5] Price Targets - The current analyst configuration is more bearish than a month ago, with a decrease in "Strong Buy" suggestions from 13 to a lower number. Bernstein analyst Lance Wilkes maintains a "Buy" rating with a price target of $420 [6] - The mean price target for ELV is $379.63, indicating a 17% premium from current market prices, while the highest target of $465 suggests a potential upside of 43.3% [6]

Core Insights - Cigna Group will eliminate prescription drug rebates in many of its commercial health plans starting in 2027 [1] Company Impact - The decision to remove prescription drug rebates may significantly alter the pricing structure and cost dynamics for Cigna's health plans [1] Industry Implications - This move could set a precedent in the healthcare industry, potentially influencing other insurers to reconsider their rebate strategies [1]