Elevance Health Rated Strong by Investment Guru Strategies

Elevance Health Inc receives a favorable rating of 79% based on fundamental analysis. The stock passes multiple key financial metrics, indicating strong potential for investors. This may positively influence its stock price going forward.

Date: 28-02-2025

AI Rating: 6

Investment Analysis of Elevance Health Inc (ELV)

Elevance Health Inc has been evaluated using various investment strategies, specifically the Low PE Investor model. This model assesses firms with consistent earnings growth relative to their earnings growth and dividend yield.

The report indicates that ELV has:

P/E RATIO: PASS
EPS GROWTH: PASS
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
FREE CASH FLOW: PASS

These results are promising as they suggest the company has a solid earnings foundation and efficient cash flow management. However, there are two areas where the stock did not meet expectations:

TOTAL RETURN/PE: FAIL
EPS PERSISTENCE: FAIL

The failures in Total Return/PE and EPS Persistence may introduce concerns for investors regarding long-term sustainability. Despite these shortcomings, the overall rating of 79% indicates a generally strong interest in ELV. The positive ratings in earnings per share (EPS) and free cash flow could attract investors looking for stability and growth potential in the insurance sector.

Overall, the favorable metrics highlight Elevance Health’s potential as a viable investment, though caution is warranted due to the noted failures. Investors might perceive this as a capacity for future growth, especially in a sector that prioritizes stable returns.

Stocks: ELV