Elevance Health, Inc. (ELV) Monthly Investment Analysis | December 11, 2025

Company Overview

Elevance Health, Inc., headquartered in Indianapolis, Indiana, is a major player in the health benefits industry, operating under several well-known brands, including Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon. The company, formerly known as Anthem, Inc. prior to its rebranding in June 2022, provides a diversified array of health plans and services to a broad base of members, from individuals and employer groups to Medicare and Medicaid participants.

Business Model and Industry Position

Operating through four main segments--Health Benefits, CarelonRx, Carelon Services, and Corporate & Other--Elevance Health's business model is designed to cater to a variety of healthcare needs. These include pharmacy services, specialty insurance products, behavioral health management, and comprehensive care management. With a robust total revenue of approximately $194.82 billion, the company is positioned well within the highly competitive U.S. healthcare sector.

The healthcare plans industry offers compelling investment opportunities, especially as demand for managed care continues to rise amid ongoing demographic changes affecting healthcare consumption. Analysts project a significant upside for Elevance Health, recommending a buy with a target price expected to reach $507.00 in the near future.

52-Week Price Performance Analysis

52-Week Price Performance Chart

Elevance Health's stock has experienced significant volatility over the past year. Currently, it is priced at $333.47, which is slightly below its fifty-day moving average of $334.36.

Price Trends

Over the past 52 weeks, the stock reported a high of $458.75 and a low of $273.71. The bearish trend since peaking in April illustrates a steady decline, characterized by a sequence of lower highs and lower lows, corroborating market apprehension. Current trading a little over 8% below a notable resistance level around $400 suggests a cautious sentiment among investors.

Support and Resistance Levels

• Key Support Level: $341.04
  This level has shown resilience, acting as a barrier to further downside movement.

• Key Resistance Level: $400.00
  A breakout above this level would be necessary to alter the bearish trajectory.

Momentum Indicators

The moving averages indicate bearish sentiment, consistently remaining above the price action. However, recent weeks have shown signs of potential recovery with a pattern of higher lows since August. For true bullish momentum, the stock needs to break the established resistance levels with significant trading volume.

Financial Performance and Metrics

Elevance Health's financial metrics reflect a robust operational performance, underpinning its potential for future growth.

• Total Revenue: Approximately $194.82 billion
• EBITDA: About $8.92 billion, indicating healthy margins.

Valuation Metrics

With 222,238,763 shares outstanding and a small short interest of 1.75%, reflecting cautious optimism among investors, the company enjoys a stable share structure that supports future value appreciation.

Current valuations indicate:

• Current Share Price: $333.47
• Target Mean Price: Approximately $387.16
• Median Price Target: $398.00
• Target High Price: $507.00
• Recommendation Mean: 1.85714 (Buy) based on 19 analysts.

The stock's current valuation presents a substantial potential for price appreciation, reinforcing a positive investment outlook.

Recent News and Developments

Elevance Health has faced several challenges that have materially impacted its stock performance:

1. Second-quarter Earnings Report: In July 2025, the company reported adjusted earnings of $8.84 per share, missing analyst expectations and prompting a downward revision of its full-year earnings guidance to approximately $30 per share. This adjustment was largely due to elevated medical costs in its Medicaid and ACA plans. Following this, ELV's stock hit a 52-week low of $275.60, resulting in a near 12% decline.

2. Analyst Revisions: In October 2025, Bernstein lowered its price target for ELV from $420 to $412, maintaining an "Outperform" rating but acknowledging a delayed recovery timeline.

3. Legal Challenges: Elevance is currently facing a securities class action lawsuit over alleged misrepresentation of its financial guidance related to Medicaid cost trends.

4. Earnings Guidance Maintenance: Despite the challenges, Elevance Health maintained its 2025 earnings guidance, continuing to focus on strategic initiatives aimed at expanding its market share.

5. Dividend Consistency: Notably, the company has increased its dividend for 14 consecutive years, showcasing a commitment to return value to shareholders.

Market Sentiment and Analyst Recommendations

The overall market sentiment towards Elevance Health remains cautiously optimistic despite recent headwinds. Analysts highlight a strong buy recommendation based on the following factors:

• Analyst Consensus: 19 analysts providing coverage signal confidence in the company's rebound potential.
• Short Interest: A relatively low short interest indicates a lack of pessimism among institutional investors.
• Potential for Price Growth: With the current price down and target prices indicating significant upside, investors may view this as an opportune entry point.

Opportunities and Risks

Opportunities: - Strong financial performance projections. - Resilient dividend history. - Target prices suggesting substantial upside.

Risks: - Missed earnings predictions and lowered guidance may deter short-term investors. - Ongoing legal challenges that could impact credibility. - Market volatility inherent in the healthcare sector.

Conclusion

Elevance Health, Inc. presents a compelling investment opportunity, particularly for long-term investors looking to capitalize on its strong market positioning and growth potential. Despite facing short-term challenges, including earnings misses and legal battles, its robust financial metrics, promising growth outlook, and resilience in dividend payments indicate that it is a company worthy of consideration. As always, however, investors should remain vigilant and assess their risk tolerance when considering investments in an evolving market environment.

For more insights and detailed financial analyses, stay tuned for our next monthly investment report.