Peeling Back The Layers: Exploring Elevance Health Through Analyst Insights

In the last three months, 7 analysts have published ratings on Elevance Health ELV, offering a diverse range of perspectives from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Elevance Health, presenting an average target of $556.29, a high estimate of $580.00, and a low estimate of $547.00. This current average represents a 1.13% decrease from the previous average price target of $562.67.

Diving into Analyst Ratings: An In-Depth Exploration

A clear picture of Elevance Health's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Elevance Health. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Elevance Health compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Elevance Health's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Elevance Health's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Elevance Health analyst ratings.

Unveiling the Story Behind Elevance Health

Elevance Health remains one of the leading health insurers in the U.S., providing medical benefits to 48 million medical members as of June 2023. The company offers employer, individual, and government-sponsored coverage plans. Elevance differs from its peers in its unique position as the largest single provider of Blue Cross Blue Shield branded coverage, operating as the licensee for the Blue Cross Blue Shield Association in 14 states. Through acquisitions, such as the Amerigroup deal in 2012 and MMM in 2021, Elevance's reach expands beyond those states through government-sponsored programs such as Medicaid and Medicare Advantage plans, too.

Unraveling the Financial Story of Elevance Health

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Challenges: Elevance Health's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -0.47%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.01%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Elevance Health's ROE stands out, surpassing industry averages. With an impressive ROE of 2.2%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Elevance Health's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.78%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.64, caution is advised due to increased financial risk.

Understanding the Relevance of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.