Elevance Health, Inc.
ELV
$375.84
-0.15%
Elevance Health, Inc. is a leading health insurance company in the United States, providing medical benefits to approximately 45 million members through employer, individual, and government-sponsored plans. As the largest licensee of the Blue Cross Blue Shield Association, operating in 14 states, Elevance holds a distinct competitive position in the managed care industry, with a growing presence in government programs like Medicaid and Medicare Advantage, as well as pharmacy benefit management and healthcare services through its Carelon segment. The current investor narrative centers on the company's ability to navigate regulatory changes, particularly the recent CMS decision to boost Medicare Advantage payments for 2027, which has improved revenue visibility and sentiment across the sector. Additionally, Elevance's strategic focus on expanding its Carelon services and managing medical costs is under scrutiny as the company balances growth with margin pressures in a competitive healthcare landscape.…
ELV
Elevance Health, Inc.
$375.84
Investment Opinion: Should I buy ELV Today?
Rating: Buy. ELV is a compelling investment due to its attractive valuation, strong analyst consensus, and favorable regulatory tailwinds. The average analyst target of $449.10 implies a 19.5% upside, and the low forward PE of 12.68x offers a margin of safety. The company's solid profitability, with an ROE of 12.9% and net margin of 2.84%, supports its ability to generate shareholder value.
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ELV 12-Month Price Forecast
The AI assessment is bullish on ELV over the next 12 months, driven by its attractive valuation and favorable regulatory environment. The low forward PE provides a margin of safety, while the CMS Medicare payment increase is a positive catalyst. However, the decelerating revenue growth and elevated debt levels warrant caution. The stance would be upgraded to high confidence if revenue growth accelerates above 3% and operating margins expand. Conversely, a downgrade to neutral would occur if revenue growth turns negative or medical costs rise unexpectedly.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Elevance Health, Inc.'s 12-month outlook, with a consensus price target around $449.10 and implied upside of +19.5% versus the current price.
Average Target
$449.10
0 analysts
Implied Upside
+19.5%
vs. current price
Analyst Count
—
covering this stock
Price Range
$393 - $492
Analyst target range
The target price range spans from a low of $393.00 to a high of $492.00, indicating a wide dispersion of expectations. The low target suggests a modest 4.6% upside, possibly pricing in margin compression or competitive losses, while the high target implies a 30.9% upside, assuming accelerating growth and successful execution of the Carelon expansion. Recent institutional ratings have been predominantly positive, with firms like Truist, TD Cowen, and Wells Fargo reiterating Buy or Overweight ratings in July 2026, while no downgrades have been observed. The wide target spread highlights uncertainty around medical cost trends and regulatory policy, but the overall bullish consensus suggests that analysts view the risk-reward as favorable at current levels.
Bulls vs Bears: ELV Investment Factors
Elevance Health presents a mixed picture: strong valuation support, a favorable regulatory catalyst, and solid profitability are countered by decelerating revenue growth, elevated leverage, and recent price volatility. The bull case is currently stronger, as the low forward PE and analyst consensus suggest the market is undervaluing the company's earnings power and strategic positioning. The most important tension is whether the company can reignite revenue growth and expand margins in a competitive and regulatory-constrained environment. If ELV successfully executes on its Carelon expansion and benefits from the Medicare rate increase, the stock could re-rate higher; conversely, continued top-line deceleration could erode investor confidence and lead to multiple compression.
Bullish
- Attractive Valuation with Forward PE of 12.68x: ELV trades at a forward PE of 12.68x, which is a discount to the broader market and its own historical average. This low multiple provides a margin of safety and suggests the market is pricing in limited growth, offering upside if the company meets or beats expectations.
- Strong Analyst Consensus with 19.5% Upside: With 21 analysts covering the stock, the consensus rating is 'Buy' and the average price target is $449.10, implying a 19.5% upside from the current price of $375.84. The high target of $492.00 suggests even more significant potential, reflecting confidence in the company's strategic direction.
- Favorable Medicare Advantage Rate Increase: The CMS decision to boost Medicare Advantage payments for 2027 has improved revenue visibility and sentiment across the managed care sector. This regulatory tailwind is particularly beneficial for ELV, which has a significant presence in government programs, potentially driving membership growth and margin expansion.
- Solid Profitability with ROE of 12.9%: ELV's return on equity stands at 12.9%, indicating efficient use of shareholder capital. This is supported by a net margin of 2.84% and a consistent track record of generating positive earnings, which underpins the company's ability to create value over time.
Bearish
- Decelerating Revenue Growth at 1.4% YoY: Q2 2026 revenue grew only 1.4% year-over-year, down from 2.6% in Q1 2026 and 1.8% in Q2 2025. This deceleration signals potential market saturation, competitive pressures, or regulatory constraints that could limit top-line expansion and pressure valuation.
- Elevated Debt-to-Equity Ratio of 0.76: ELV's debt-to-equity ratio of 0.76 indicates a moderate level of leverage, which could increase financial risk, especially if interest rates remain high or operating margins compress. This debt burden may limit financial flexibility and increase vulnerability to economic downturns.
- Recent Price Volatility with 9.7% Monthly Decline: The stock has fallen 9.7% in the past month, underperforming the S&P 500 by 9.9%. This recent weakness, coupled with a beta of 0.68, suggests that while the stock is less volatile than the market, it is not immune to sector-specific sell-offs or negative news flow.
- Negative PEG Ratio of -5.70: The PEG ratio is negative, indicating that earnings growth is expected to be negative or the ratio is distorted by low growth estimates. This raises concerns about the sustainability of earnings and whether the current valuation is justified.
ELV Technical Analysis
The prevailing price trend for Elevance Health is a strong uptrend over the past year, with the stock up 32.77% over the last 12 months, significantly outperforming the S&P 500's 18.19% gain. The current price of $375.84 sits at approximately 86% of the 52-week range (between $273.71 low and $436.24 high), indicating the stock is trading closer to its highs but has pulled back from the peak. This positioning suggests that while the long-term momentum remains bullish, the recent decline from the high may present a buying opportunity or signal a short-term correction, depending on whether the uptrend resumes.
Beta
0.68
0.68x market volatility
Max Drawdown
-30.6%
Largest decline past year
52-Week Range
$274-$436
Price range past year
Annual Return
+32.8%
Cumulative gain past year
| Period | ELV Return | S&P 500 |
|---|---|---|
| 1m | -9.7% | +0.3% |
| 3m | +0.8% | +4.0% |
| 6m | +8.7% | +8.3% |
| 1y | +32.8% | +20.2% |
| ytd | +6.1% | +9.6% |
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ELV Fundamental Analysis
Elevance Health's revenue trajectory shows modest growth, with the most recent quarter (Q2 2026) reporting revenue of $50.47 billion, a 1.4% year-over-year increase. This growth rate is decelerating compared to earlier quarters, such as Q1 2026's 2.6% growth and Q2 2025's 1.8% growth, indicating a slowdown in top-line expansion. The Health Benefits segment remains the primary revenue driver at $42.72 billion, while Carelon Services contributes $19.23 billion, but the overall growth is constrained by competitive pressures and regulatory changes in the managed care industry.
Quarterly Revenue
$50.5B
2026-06
Revenue YoY Growth
+1.4%
YoY Comparison
Gross Margin
89.1%
Latest Quarter
Free Cash Flow
$6.3B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is ELV Overvalued?
Given Elevance's positive net income, the price-to-earnings (PE) ratio is the most appropriate valuation metric. The trailing PE is 13.92x, while the forward PE is 12.68x, indicating that the market expects earnings growth of approximately 9.8% over the next year. This forward discount suggests that analysts anticipate improved profitability, likely driven by cost management and the favorable Medicare payment environment. The gap between trailing and forward PE is modest, reflecting a stable earnings outlook rather than aggressive growth expectations.
PE
13.9x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 9x~35x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
10.5x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: ELV's revenue growth has decelerated to 1.4% YoY in Q2 2026, indicating potential market saturation or competitive pressures. The company's debt-to-equity ratio of 0.76 suggests moderate leverage, which could strain cash flows if interest rates remain elevated. Operating margin is thin at 4.07%, leaving little room for error in cost management. Additionally, the negative PEG ratio of -5.70 implies that earnings growth may not support the current valuation, raising concerns about future profitability. The company's reliance on government programs like Medicaid and Medicare exposes it to regulatory changes, which could impact reimbursement rates and membership growth.