Valued at a market capitalization of roughly $76.5 billion, Elevance Health, Inc. (ELV) positions itself as a lifelong, trusted health partner, driven by a mission to improve the health of humanity. The company supports individuals, families, and communities at every stage of the healthcare journey, connecting them with the care, tools, and resources needed to live healthier, more fulfilling lives. Through a broad and integrated portfolio spanning medical, pharmacy, behavioral, clinical, home health, and ...

Elevance Health is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey – connecting them to the care, support, and resources they need to lead better lives. Elevance Health's companies serve 109 million consumers through a diverse portfolio of industry-leading medical, pharmacy, behavioral, clinical, home health, and complex care solutions. For more information, please visit www. ...

Core Insights - The Zacks Medical - Outpatient and Home Healthcare industry is experiencing a significant shift towards digital healthcare, driven by rising demand for telemedicine and AI-powered services, particularly due to an aging global population and increasing healthcare costs [1][4][9]. Industry Overview - The industry includes companies providing outpatient care and home healthcare services, utilizing advanced medical technologies for diagnosis and treatment. The sector has shown steady growth post-pandemic, supported by innovation and the shift towards value-based care models [3][6]. - The global home healthcare market was valued at $390.24 billion in 2023, with an expected CAGR of approximately 7.9% from 2024 to 2030 [1]. Major Trends - **Aging Population**: The growing elderly population is a primary driver for home healthcare services, increasing the demand for chronic disease management and rehabilitation [4]. - **Cost Effectiveness**: Outpatient clinics offer cost-effective care, supported by financial incentives from health plans and government programs [5]. - **AI Integration**: AI is enhancing healthcare delivery, with outpatient companies utilizing automated systems for better patient outcomes and efficiency [7]. - **Technological Advancements**: Virtual assistants and chatbots are becoming integral in patient care, aiding in appointment scheduling and medication compliance [8]. Challenges - **Staffing Shortages**: The U.S. healthcare sector faces significant staffing shortages, particularly among home health aides, exacerbated by high burnout rates [10]. - **Tariff Impact**: New U.S. tariffs have increased costs for imported medical supplies, straining home healthcare providers and leading to operational challenges [11]. Market Performance - The industry has outperformed its sector but underperformed compared to the S&P 500, gaining 6.8% over the past year versus the S&P 500's 12.1% gain [14]. - The industry is currently trading at a forward P/E of 19.8X, lower than the S&P 500's 22.3X [18]. Notable Companies - **Quest Diagnostics**: Expected revenue growth of 9.2% for 2025, with a strong return on equity (ROE) of 15.1% [22][23]. - **Encompass Health**: Anticipated revenue growth of 9.5% for 2025, with an ROE of 17.6% [25][26]. - **The Pennant Group**: Projected revenue growth of 23.3% for 2025, with an ROE of 10.7% [29][30]. - **DaVita**: Expected revenue growth of 5.2% for 2025, with a notably high ROE of 176.1% [33][34].