Elevance Health, traded under the ticker ELV, has seen a notable decrease in its stock price, dropping by 6.1%, which translates to a $18.45 decline, bringing the share value down to $284.00. Investors may find this decline significant and seek enhanced data and insights to navigate the current market trends effectively.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Elevance Health Inc (ELV, Financial) is $439.91 with a high estimate of $556.33 and a low estimate of $310.00. The average target implies an upside of 54.82% from the current price of $284.14. More detailed estimate data can be found on the Elevance Health Inc (ELV) Forecast page.
Based on the consensus recommendation from 24 brokerage firms, Elevance Health Inc's (ELV, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Elevance Health Inc (ELV, Financial) in one year is $634.53, suggesting a upside of 123.32% from the current price of $284.14. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Elevance Health Inc (ELV) Summary page.
ELV Key Business Developments
Release Date: July 17, 2025
- GAAP Diluted EPS: $7.72 for the second quarter.
- Adjusted Diluted EPS: $8.84 for the second quarter.
- Full Year 2025 Adjusted EPS Guidance: Approximately $30.
- Operating Revenue: $49.4 billion, a 14% increase year-over-year.
- Benefit Expense Ratio: 88.9%, an increase of 260 basis points year-over-year.
- Medical Membership: 45.6 million, down approximately 200,000 sequentially.
- Adjusted Operating Expense Ratio: 10.0%, improved by 140 basis points year-over-year.
- CarelonRx Revenue Growth: Over 20% increase.
- Carelon Services Revenue Growth: Greater than 50% increase.
- Debt-to-Capital Ratio: 40.8% at the end of the quarter.
- Operating Cash Flow: $2.1 billion for the quarter; approximately $6 billion expected for the full year.
- Capital Return to Investors: Approximately $2 billion year-to-date.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Elevance Health Inc (ELV, Financial) reported a 14% year-over-year increase in operating revenue, reaching $49.4 billion, driven by higher premium yields and recent acquisitions.
- The company delivered adjusted EPS consistent with expectations, reflecting strength in the Medicare Advantage portfolio and disciplined cost management.
- CarelonRx and Carelon services showed strong performance, with CarelonRx growing operating revenue by over 20% and Carelon services delivering more than 50% growth in revenue.
- Elevance Health Inc (ELV) is actively using AI-enabled tools to streamline clinical workflows and improve operational efficiency.
- The company is expanding its value-based care portfolio, particularly in behavioral health and oncology, with more than one-third of benefit expenses now in downside risk arrangements.
Negative Points
- Elevance Health Inc (ELV) revised its full-year 2025 adjusted EPS guidance to approximately $30, reflecting pressures from elevated medical cost trends in ACA and slower Medicaid rate alignment.
- The company experienced a sequential decline in medical membership, down approximately 200,000, primarily due to reductions in Medicaid membership and lower effectuation rates in the ACA business.
- The consolidated benefit expense ratio increased by 260 basis points year-over-year, driven by ACA and Medicaid businesses.
- Elevance Health Inc (ELV) is facing challenges with elevated medical cost trends due to increased morbidity in the ACA market and higher acuity from Medicaid redeterminations.
- The company anticipates a prolonged Medicaid margin recovery period due to slower-than-expected rate adjustments aligning with current cost levels.
