Elevance Health stock hits 52-week low at $357.34

Published 02/07/2025, 19:12
Elevance Health stock hits 52-week low at $357.34

Elevance Health Inc’s stock reached a 52-week low on the trading floor, touching $357.34. This marks a significant downturn for the company over the past year, with its stock price declining approximately 25%. According to InvestingPro analysis, the company appears undervalued at current levels, trading at a P/E ratio of 13.9x with a GREAT financial health score. The healthcare giant, previously known for its robust performance, is now navigating through a challenging period as market dynamics and sector-specific pressures weigh heavily on its valuation. Despite current headwinds, InvestingPro data reveals the company has maintained dividend payments for 15 consecutive years and management has been actively buying back shares. Investors are closely monitoring the company’s strategic responses to these challenges as they assess future prospects in a rapidly evolving healthcare landscape. For deeper insights into Elevance Health’s valuation and prospects, access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Elevance Health has reaffirmed its earnings guidance for 2025, projecting full-year earnings to be between $28.30 and $29.00 per diluted share, with adjusted earnings per share expected to range from $34.15 to $34.85. Barclays (LON:BARC) has maintained its Overweight rating with a $522 price target, despite adjusting its second-quarter earnings per share forecast from $9.53 to $8.70 due to a slight increase in the medical loss ratio. UBS reiterated its Buy rating and $555 price target, noting changes in the company’s earnings distribution for 2025, with first-half earnings now expected to represent 60% of the full-year results. Cantor Fitzgerald also maintained its Overweight rating with a $485 price target, expressing confidence in Elevance’s potential for earnings growth, particularly in Carelon’s earnings and commercial margin expansion. The company is addressing challenges such as higher acuity in Affordable Care Act populations and out-of-network billing issues, with litigation against certain providers being one of the measures taken. Elevance is also exploring expense management opportunities to support performance in the second half of the year. These developments reflect the company’s ongoing efforts to navigate market dynamics and maintain its competitive position.

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