On July 22, Elevance Health rose 3.02% in regular trading, trading at $393.27/share, with turnover of $3.49 billion. The stock continues its recovery from the sharp selloff following its Q2 earnings release on July 15.
Despite a strong Q2 earnings beat — adjusted EPS of $7.45 versus consensus of $6.21 and revenue of $49.83 billion exceeding estimates by $1.2 billion — the stock initially plunged over 10% on concerns about Medicaid utilization pressure and operating margin compression (declining from 4.9% to 3.5% year-over-year). The company also indicated plans to exit additional Medicaid markets over the next 12-18 months.
Since then, multiple investment banks have issued upgraded price targets, fueling the recovery: Wells Fargo raised to $492, Truist to $475, Guggenheim to $455, and Leerink to $395. Truist lifted its EPS estimate to $27.12 for the current fiscal year and $29.14 for the following year, citing the strong Q2 performance and raised full-year guidance of at least $27 adjusted EPS as a foundation for long-term improvement.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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