Elevance Health, Inc.
ELV
$400.54
+1.07%
Elevance Health, Inc. is a leading health insurer in the United States, providing medical benefits to approximately 45 million members through employer, individual, and government-sponsored plans, including Medicaid and Medicare Advantage. 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, complemented by its growing Carelon services segment and pharmacy benefit management capabilities. The current investor narrative centers on the company's recovery from a challenging 2025, marked by elevated medical costs and regulatory pressures, with recent momentum driven by improved Medicare payment rates from CMS and a strategic focus on operational efficiency and growth in healthcare services.…
ELV
Elevance Health, Inc.
$400.54
ELV 12-Month Price Forecast
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 +12.1% versus the current price.
Average Target
$449.10
0 analysts
Implied Upside
+12.1%
vs. current price
Analyst Count
—
covering this stock
Price Range
$393 - $492
Analyst target range
Elevance Health is covered by 21 analysts, with a consensus recommendation leaning bullish, as indicated by recent actions from major firms such as Truist Securities (Buy), TD Cowen (Buy), and Wells Fargo (Overweight), while no downgrades have been reported in the past three months. The average analyst target price is $449.10, implying an upside of approximately 12.2% from the current price of $400.32. The target range spans from a low of $393.00 to a high of $492.00, with the low end slightly below the current price, suggesting some analysts see limited downside, while the high end implies a potential gain of 22.9%.
Bulls vs Bears: ELV Investment Factors
Elevance Health presents a balanced risk-reward profile. The bull case is supported by a strong recovery, attractive valuation, and positive analyst sentiment, while the bear case highlights sluggish growth and regulatory overhangs. Currently, the evidence slightly favors the bulls due to the low PE and improving Medicare rates. The key tension is whether ELV can sustain its recovery and grow earnings in a mature, cost-sensitive industry. If medical costs remain contained and membership grows, the stock could re-rate higher; otherwise, valuation compression is a risk.
Bullish
- Strong 1-Year Price Recovery: ELV has surged 35.5% over the past year, outperforming the S&P 500's 20.4% gain, indicating robust market confidence and a successful recovery from the 2025 downturn.
- Attractive Valuation with Low PE: With a trailing PE of 13.9x and forward PE of 13.5x, ELV trades at a significant discount to the broader market, offering value relative to its earnings power and growth prospects.
- Positive Analyst Sentiment: The consensus rating is bullish, with recent upgrades from major firms like Truist, TD Cowen, and Wells Fargo. The average analyst target of $449.10 implies a 12.2% upside from the current price.
- Improved Medicare Payment Rates: CMS's larger-than-expected 2027 Medicare Advantage payment increase boosts revenue visibility and sector sentiment, directly benefiting ELV's government-sponsored business.
Bearish
- Modest Revenue Growth: Q2 2026 revenue grew only 1.4% YoY, reflecting the mature health insurance market and limited pricing power, which may cap earnings growth.
- Elevated Medical Costs: The company faced elevated medical costs in 2025, pressuring margins. Q4 2025 operating margin fell to 1.2%, indicating vulnerability to cost inflation.
- Regulatory and Political Risks: As a major government payer participant, ELV is exposed to policy changes in Medicaid and Medicare, which could alter reimbursement rates and membership.
- High Debt-to-Equity Ratio: With a debt-to-equity ratio of 0.76, ELV carries a notable debt load, increasing financial risk if interest rates rise or cash flows weaken.
ELV Technical Analysis
Elevance Health's stock has demonstrated a robust recovery over the past year, with a 1-year price change of +35.5%, significantly outperforming the S&P 500's +20.4% gain. The current price of $400.32 sits at 78.5% of the 52-week range (between $274.84 low and $436.24 high), indicating a strong upward trend that has reclaimed most of the ground lost during the early 2026 selloff. This positioning suggests the stock is in a sustained uptrend, though it remains below its all-time high, leaving room for potential upside if momentum continues.
Beta
0.69
0.69x market volatility
Max Drawdown
-26.5%
Largest decline past year
52-Week Range
$275-$436
Price range past year
Annual Return
+29.4%
Cumulative gain past year
| Period | ELV Return | S&P 500 |
|---|---|---|
| 1m | +2.9% | +2.5% |
| 3m | +1.5% | +2.7% |
| 6m | +16.8% | +11.1% |
| 1y | +29.4% | +20.5% |
| ytd | +13.1% | +12.3% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
ELV Fundamental Analysis
Elevance's revenue trajectory shows modest growth, with Q2 2026 revenue of $50.47 billion, up 1.4% year-over-year, following a pattern of low single-digit growth over the past several quarters (Q1 2026: $50.18 billion, Q4 2025: $49.75 billion, Q3 2025: $50.71 billion). The Health Benefits segment remains the primary revenue driver at $42.72 billion, while Carelon Services contributes $19.23 billion, though segment eliminations of $12.13 billion complicate the consolidated picture. This steady, albeit slow, growth reflects the mature nature of the health insurance industry, with expansion driven by membership growth and pricing adjustments rather than rapid volume increases.
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
Open an Account, get $2 TSLA now!
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 stands at 13.9x, while the forward PE is 13.5x, indicating that the market expects slightly higher earnings growth in the coming year. This narrow gap between trailing and forward multiples suggests a stable earnings outlook, with the market pricing in modest growth rather than a dramatic acceleration or deceleration.
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
Financially, ELV's debt-to-equity ratio of 0.76 indicates moderate leverage, which could strain cash flows if interest rates rise. The company's net margin of 2.8% is thin, leaving little room for cost overruns. Revenue growth is sluggish at 1.4% YoY, and Q4 2025 operating margin dipped to 1.2%, showing vulnerability to medical cost inflation. However, strong free cash flow of $6.29 billion provides a cushion for debt servicing and shareholder returns.