Core Viewpoint - Elevance Health, Inc. (NYSE:ELV) is considered one of the most undervalued long-term stocks to buy, with a Buy rating and a price target of $400 set by Cantor Fitzgerald [1]. Group 1: Earnings Outlook - Cantor Fitzgerald maintains a cautious outlook on the 2026 Medicaid environment, highlighting conservative elements in Elevance's earnings per share projections for that year [2]. - Execution in Medicare Advantage, commercial business, and Carelon is deemed critical for Elevance's performance in 2026 and 2027, especially given the increasing uncertainty surrounding Medicaid visibility [2]. Group 2: Segment Performance - Despite the cautious outlook, Cantor Fitzgerald believes Elevance Health will outperform expectations in the Medicare Advantage and Carelon segments [3]. - Elevance Health operates as a health insurer in the United States, providing a variety of health plans and services [3].

Financial Performance - Elevance Health, Inc. reported fiscal Q3 2025 operating revenue of $50.1 billion, reflecting a 12.0% increase year-over-year [1] - The diluted EPS for the quarter was $5.32, with adjusted diluted EPS reaching $6.03 [1] - Operating cash flow for fiscal Q3 2025 was $4.2 billion year-to-date, which is 0.8 times GAAP net income, a decrease of $0.9 billion year-over-year [3] Guidance and Shareholder Returns - The company reaffirmed its fiscal year 2025 benefit expense ratio guidance at around 90.0% and adjusted diluted EPS guidance of approximately $30.00 [2] - Elevance Health returned $3.3 billion of capital to shareholders year-to-date [2] Business Segments - Elevance Health operates through several segments: Health Benefits, CarelonRx, Carelon Services, and Corporate and Other [4] - The Health Benefits segment provides a variety of health plans and services, while CarelonRx manages pharmacy services [4] - Carelon Services integrates behavioral, physical, pharmacy, and social services to offer various healthcare-related services [4]