2024-04-11 00:43:07 ET
Summary
- Elevance Health will announce its Q1 2024 earnings next week, with the stock price currently at over $500 per share, up nearly 90% since 2020.
- The company has a relatively low exposure to Medicare Advantage, which has been hit hard by rate cuts, allowing it to maintain a strong medical loss ratio.
- Elevance expects a "reset year" in 2024, with a focus on margin recovery, strategic repositioning, and cost structure transformation.
- Elevance is a strong, dividend paying blue chip, but it may struggle to command a premium share price during a year in which membership numbers will fall.
Investment Overview
Elevance Health ( ELV ) will announce its Q1 2024 earnings next Thursday, April 18th ahead of the market open. When I last covered the company for Seeking Alpha it was July 2020, and Elevance - then known as Anthem - stock was trading at $271 per share. I gave it a "Buy" rating.
At that time, Anthem's stock price was being buffeted by pandemic headwinds, and most of the market believed the business, provided these headwinds eased, was undervalued. That proved to be the case - Elevance stock today is worth >$500 per share, and up nearly 90% since my "buy" call from 2020....
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For further details see:
Elevance Health: Not Doing Enough In 2024 To Justify Premium Price