Elevance Health Inc Earns High Rating in Guru Report

Elevance Health Inc receives a strong rating of 79% using the Low PE Investor model. Factors such as EPS growth and free cash flow indicate a positive outlook, while total return/PE and EPS persistence may raise concerns moving forward.

Date: 07-03-2025

AI Rating: 7

Investors we have noted the following from the report:

ELEVANCE HEALTH INC (ELV) presents a robust profile within the Low PE Investor strategy, receiving a notable score of 79%. This rating suggests that the company's fundamentals and stock valuation are favorable for investors seeking potential growth at a discount.

Earnings Per Share (EPS): The report indicates that ELEVANCE has passed the EPS growth test, which suggests that the company's profitability has been growing consistently. This positive metric can lead to increased investor confidence and a potentially higher stock price.

Future EPS Growth: Similarly, ELEVANCE has also passed the future EPS growth criteria, proposing that analysts expect the company to continue generating higher earnings, contributing to a favorable investment outlook.

Sales Growth: The company passes the sales growth criteria, indicating that revenue is increasing over time, which is essential for long-term profitability and sustainability.

Free Cash Flow (FCF): Another strong point is that ELEVANCE also passed the free cash flow test. A consistent generation of free cash flow provides the company with flexibility to reinvest in its operations, pay dividends or reduce debt, further enhancing investor appeal.

However, there are challenges present in the report:

Total Return/PE: ELEVANCE failed this test, indicating that investors may need to consider if the expected returns justify the price-to-earnings ratio. This could be a red flag for risk-averse investors.

EPS Persistence: The company also failed the EPS persistence test, which may raise some questions about the stability of its earnings over time. Investors may perceive this as a warning sign of potential volatility in earnings performance.

Overall, despite some concerns regarding total return/PE and EPS persistence, ELEVANCE HEALTH INC's strong ratings in EPS growth, sales growth, and free cash flow present a balanced view for potential investors.

Stocks: ELV