Elevance Health, Inc. Stock Report - October 27, 2025

Company Overview

Elevance Health, Inc. (NYSE: ELV), headquartered in Indianapolis, Indiana, is a prominent player in the healthcare benefits industry. Formerly known as Anthem, Inc., the company underwent a rebranding in June 2022 to better reflect its enhanced focus on innovative health solutions. Elevance provides a comprehensive range of health plans and services aimed at individual, employer group, and government members. Its offerings include risk-based and fee-based health plans, Medicare, Medicaid, and pharmacy services, alongside robust mental health, virtual care, and comprehensive care management solutions powered by its advanced HealthOS platform.

Elevance operates within the Healthcare Plans industry, a critical sector that has gained significance amid ongoing changes in healthcare policies and consumer demand for more efficient healthcare services. The company's business model emphasizes not only traditional health insurance products but also cutting-edge healthcare management services, making it well-positioned for sustained growth and innovation.

52-Week Price Performance Analysis

52-Week Price Performance Chart

The 52-week stock price chart for Elevance Health exhibits a predominantly bearish trend over the past year. Currently trading at $341.70, the stock has faced significant volatility, with a high of $458.75 and a low of $273.71. This represents a decline of approximately 16.45% from its peak earlier this year.

Key technical indicators reveal critical support and resistance levels that investors should monitor: - Resistance Level: The $400 mark has served as a key barrier where the stock has repeatedly failed to maintain levels above, indicating strong selling pressure. - Support Level: Recent price action suggests a support level has formed around $340, with the stock bouncing off this level in both September and October. This could signify a buyer interest threshold, providing a possible floor for future price movements.

The analysis of momentum, as suggested by the moving average, indicates periods of bearish sentiment, particularly during the significant price drop observed from June to August 2025. However, momentum appears to be shifting, as recent price movements reflect a crossover above the moving average, hinting at a potential bullish reversal should it maintain above the $400 resistance level.

In summary, investors should closely watch the trends around these critical levels. A sustained rally above $400 could suggest renewed bullish momentum, while a breakdown below the support level at $340 may warrant caution.

Financial Performance and Metrics

Elevance Health's financial performance underscores its operational strength, demonstrating resilience even in challenging market conditions. The company reported total revenue of approximately $194.82 billion, reflecting robust operational scale. The key financial metrics are as follows:

• Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): $8.92 billion, highlighting the company's strong profitability and operational efficiency.
• Current Price: $341.70.
• Market Capitalization: Approximately $75.9 billion (based on the current share price and shares outstanding).

In addition to these figures, Elevance's medical loss ratio stands at 91.3%, marginally better than expected, providing insights into effective cost control measures that have positively impacted earnings. This metric is critical for health insurers, as it reflects the percentage of premium revenue spent on healthcare services, with lower ratios indicating better management of medical costs.

Analysts have a target high price for ELV at $507.00, with a target mean price estimated at $389.05. This discrepancy suggests potential upside, contingent upon future performance and market conditions.

Recent News and Developments

Recent developments have further strengthened Elevance's standing in the healthcare sector. The company reported impressive third-quarter 2025 earnings that exceeded Wall Street's expectations with an adjusted earnings per share (EPS) of $6.03, surpassing the anticipated $4.93. This outstanding performance was attributed to a stronger-than-expected control of medical costs, amidst broader concerns surrounding elevated healthcare expenditures.

Following the earnings release, Elevance's stock surged over 7% in premarket trading, reflecting positive investor sentiment. Additionally, Bernstein upgraded its price target for the company to $585, citing favorable expectations regarding improved margins within government-managed care and a return to normalized healthcare utilization--two crucial factors that could bolster future earnings.

However, despite recent gains, the company dealt with a significant decline in stock value earlier, with a 52-week low of $274.33 recorded in August 2025 amid heightened scrutiny regarding Medicaid costs and adjusted earnings forecasts. While challenges remain, the latest earnings report frames a more optimistic perspective moving forward.

Market Sentiment and Analyst Recommendations

The overall market sentiment surrounding Elevance Health leans towards positivity. Based on the consensus of 19 analysts, the recommendation score averages to 1.85714 on a scale where 1 is a strong buy, indicating robust confidence in the company's growth prospects.

Key price targets include: - Target High Price: $585 (Bernstein's updated target). - Target Mean Price: $389.05. - Target Low Price: $297.00.

With the current stock price of $341.70, this presents an appealing investment opportunity, suggesting significant upside potential. The relatively low short interest of approximately 1.42% implies that there is minimal bearish sentiment in terms of short selling against Elevance's shares, suggesting an investor-friendly outlook.

Conclusion

Elevance Health, Inc. stands at an intriguing crossroads in its investment journey. While the stock has experienced volatility, recent earnings reports and analyst upgrades signal a potential for recovery and growth, framed by effective cost management and a diversified service offering. Investors should closely monitor key price levels and market developments in the healthcare sector. With its current pricing positioned below analyst target estimates, Elevance Health emerges as a compelling option for those looking to diversify their portfolio in the healthcare space amidst a landscape of both opportunities and risks.

As with all investments, it is crucial for investors to conduct their diligent research and consider both the promising outlook and the challenges that may lie ahead for Elevance Health.