Elevance Health Inc. Shows Strong Ratings Among Gurus

According to a recent report, Elevance Health Inc. (ELV) has achieved a significant rating of 91% based on Peter Lynch's P/E/Growth strategy, indicating strong investor interest and solid fundamentals.

Date: 01-11-2024

AI Rating: 7

The report highlights Elevance Health Inc. (ELV) as a strong candidate for investment, achieving a remarkable 91% rating using the P/E/Growth Investor model inspired by Peter Lynch. This rating, which exceeds the typical threshold of 80% for positive interest and the 90% mark for strong interest, suggests that investors see considerable potential in ELV’s current valuation in relation to its earnings growth potential.

In a breakdown of the stock's fundamental components:

Yield Adjusted P/E to Growth (PEG) Ratio: The stock passed this criterion, signaling that it is trading reasonably well according to its earnings growth.
Earnings Per Share (EPS): The report states that Elevance Health also passed the EPS test, which is critical given that higher EPS typically indicates better profitability and can attract more investment.
Total Debt/Equity Ratio: Judged as neutral, this indicates that the company has a balanced approach to managing its debt, which poses minimal risk to investors.
Equity/Assets Ratio: The passing grade here signifies that the firm has a solid asset base relative to its equity, a good sign in assessing financial stability.
Return on Assets: Also passed, indicating effective use of assets to generate earnings, an important metric for assessing operational efficiency.
Free Cash Flow: Marked as neutral, this means while the company has the potential to generate cash, it doesn't indicate significant excess cash flow, which could limit expansion plans.
Net Cash Position: The neutral rating here suggests that while the company is not heavily indebted, it also hasn’t accumulated a considerable cash buffer.

Overall, given the high ratings in the categories of EPS, PEG ratio, and asset utilization, Elevance Health Inc. displays strong fundamentals that positively influence investor sentiment.

Stocks: ELV