$410.76
arrow_drop_up0.07%Is ELV a Buy or Sell based on AI Analysis?
Fundamental Analysis
Elevance Health (ELV) shows promising fundamentals as reflected by its low price-to-sales ratio of 0.56, indicating that the company is generating significant revenues relative to its market capitalization. Additionally, the company's price-to-book ratio of 2.24 suggests that it is trading at a reasonable valuation in comparison to its book value. With a solid return on equity of 15.5%, Elevance Health demonstrates its ability to generate profits from shareholder equity efficiently. Furthermore, the company's net margin of 3.49% indicates that it is effectively managing its costs and expenses to generate a reasonable level of profit. Lastly, Elevance Health has a dividend yield of 1.54%, providing potential returns to investors through regular dividend payments. In terms of financial health, Elevance Health has a current ratio of 1.5, indicating that the company has sufficient current assets to cover its short-term liabilities. Moreover, the company's debt-to-equity ratio of 0.62 reflects a conservative capital structure, suggesting a lower risk profile for investors. Overall, Elevance Health's strong fundamentals, efficient profitability, and sound financial health position the company favorably for potential long-term growth and value creation for investors.
Positive Development
Elevance Health Inc. has been identified as a top fund manager stock pick by Goldman Sachs, which could potentially boost its stock price. The company has recently completed the sale of its specialty pharmacy business to Elevance unit, which could potentially generate more revenue and boost its financial performance. The company has been identified as a multi-bagger by analysts, indicating potential for significant growth in the future.
Negative Development
The company's stock price has experienced a significant drop in recent weeks, which could potentially affect investor confidence. The company's Q3 2024 earnings were lower than expected, which could potentially impact investor sentiment. The company's profit has been hit by changes in Medicaid membership, which could potentially impact its financial performance in the short term.
Technical Analysis
Elevance Health, trading under the symbol ELV, currently has a technical rating of "BUY" according to the data provided. The stock has shown positive indicators with four technical buy signals including CCI, ATR, WILLR, and STOCHRSI. In addition, the stock has seen a 1.45% decrease in price, with a delta price of -$5.99, suggesting a minor pullback in the short term. The company's long-term resistance levels have been identified at $547.73 and $488, indicating potential price ceilings in the near future. Furthermore, Elevance Health has a beta of 0.83, suggesting a lower volatility compared to the market. The stock has a fifty-two-week price change percent of -8.39%, indicating some price decline over the past year. Technical indicators such as RSI and ADX have shown a hold sentiment, while indicators like MACD and ROC are displaying sell signals. Overall, the technical analysis of Elevance Health points towards a mixed sentiment with some positive buying signals but also cautionary sell indicators that investors should consider before making any investment decisions.
Conclusion and recommendation
Elevance Health (ELV) is a stock that currently has a strong technical rating of "BUY" and a favorable analyst forecast, with a predicted price increase of 31.5%. The company operates in the healthcare sector and has a market cap of $97.93B, with a price-to-earnings ratio of 15.05. Elevance Health also offers a dividend yield of 1.54% and has a solid return on equity of 15.5%. In terms of financials, the company has shown consistent revenue growth of 9.42% and has a healthy operating margin of 4.39%. With a low debt-to-equity ratio of 0.62 and a current ratio of 1.5, the company appears to be well-positioned for future growth. In conclusion, Elevance Health presents a promising investment opportunity with its strong technical and analyst forecast ratings, as well as solid financials and stable market position. Investors looking for a healthcare stock with growth potential and steady dividends may find Elevance Health to be a favorable choice. However, it is important to monitor the company's performance and market conditions closely, especially considering the potential impact of external factors on the healthcare industry. Overall, Elevance Health appears to be a sound investment option for those seeking a reliable and potentially profitable stock in the healthcare sector.