Elevance Health Declines 20% in 3 Months: Time to Sell the Stock?

Zacks11-13

Elevance Health, Inc.’s ELV shares have lost 20% in the past three months compared with the industry’s 7.1% decline. It has also lagged the broader Zacks Medical sector’s 3.7% decline and the S&P 500’...

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It has also lagged the broader Zacks Medical sector’s 3.7% decline and the S&P 500’...</p>\n\n<a href=\"https://finance.yahoo.com/news/elevance-health-declines-20-3-175700795.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Elevance Health Declines 20% in 3 Months: Time to Sell the Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nElevance Health Declines 20% in 3 Months: Time to Sell the Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-13 01:57 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/elevance-health-declines-20-3-175700795.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Elevance Health, Inc.’s ELV shares have lost 20% in the past three months compared with the industry’s 7.1% decline. It has also lagged the broader Zacks Medical sector’s 3.7% decline and the S&P 500’...</p>\n\n<a href=\"https://finance.yahoo.com/news/elevance-health-declines-20-3-175700795.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1548497426.USD","symbol_name":"安联环球人工智能AT Acc","start_time":0,"source_url":"https://finance.yahoo.com/news/elevance-health-declines-20-3-175700795.html","article_id":"2483056327","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/ZcqDt7bCeBMLkGs_KJ1O8A--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/228e67967b066e7a755ae3614be720e1"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2483056327","pubTimestamp":1731434220,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Elevance Health, Inc.’s ELV shares have lost 20% in the past three months compared with the industry’s 7.1% decline. It has also lagged the broader Zacks Medical sector’s 3.7% decline and the S&P 500’s 10.4% rise in the said time frame. It has a market cap of $95.8 billion.Closing at $425.39 in the last trading session, the stock of the health benefit company stands 25% below its 52-week high of $567.26.What’s Weighing on Elevance Health’s Performance?Elevance Health has adjusted its projections for 2024, lowering its expected adjusted net income to a minimum of around $33.00 from the previous outlook of a minimum of $37.20. The revised guidance indicates a decline of 0.4% from the 2023 figure.During the past 30 days, ELV’s 2024 and 2025 earnings estimates have witnessed major downward revisions, thereby raising concerns among investors. The estimates declined 10.3% and 14.4%, respectively, in the same time frame. It beat earnings estimates thrice in the last four quarters and missed o","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1548497426.USD":"安联环球人工智能AT Acc","LU0314106906.USD":"MANULIFE GF GLOBAL EQUITY \"AA\" (USD) INC","LU0251131958.USD":"FIDELITY AMERICA \"A\" (USD) ACC","LU0878866978.SGD":"First Eagle Amundi International AHS-QD SGD-H","LU0957791311.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"ZU\" (USD) ACC","LU2362541273.HKD":"WELLINGTON NEXT GENERATION GLOBAL EQUITY \"A\" (HKD) ACC","BK4532":"文艺复兴科技持仓","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU0345770993.USD":"NINETY ONE GSF GLOBAL STRATEGIC EQUITY \"A\" (USD) INC","LU2362541513.USD":"WELLINGTON NEXT GENERATION GLOBAL EQUITY \"A\" (USD) ACC","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU1093756168.USD":"FRANKLIN K2 ALTERNATIVE STRATEGIES \"A\" (USD) ACC","MOH":"Molina Healthcare Inc","BK4585":"ETF&股票定投概念","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","SG9999003800.SGD":"Nikko AM Global Dividend Equity Acc SGD-H","LU0114720955.EUR":"SUSTAINABLE GLOBAL HEALTH CARE \"A\" INC","LU1983299246.USD":"SCHRODER ISF HEALTHCARE INNOVATION \"A\" (USD) ACC","LU2430703095.HKD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4\" (HKD) INC","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0187121727.USD":"FIDELITY SUSTAINABLE US EQUITY \"A\" (USD) INC","LU0068578508.USD":"First Eagle Amundi International Cl AU-C USD","LU0238689110.USD":"贝莱德环球动力股票基金","LU2108987350.USD":"UBS (LUX) EQUITY SICAV GLOBAL OPPORTUNITY SUSTAINABLE (USD) \"P\" (USD) ACC","LU1506573853.SGD":"MANULIFE GF GLOBAL EQUITY \"AA\" (SGD) INC","LU0048573561.USD":"FIDELITY AMERICA \"A\" (USD) INC","LU2430703251.USD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4\" (USD) INC","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU0266013472.USD":"AXA WF - Framlington Longevity Economy A Cap USD","LU0390134368.USD":"FRANKLIN GLOBAL GROWTH \"A\" (USD) ACC","LU0289739699.SGD":"AB INTERNATIONAL HEALTH CARE PORTFOLIO \"A\" (SGD) ACC","LU1057294990.SGD":"Blackrock World Healthscience A2 SGD-H","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","LU0061474960.USD":"天利环球焦点基金AU Acc","ELV":"Elevance Health","BK4588":"碎股","SG9999014005.SGD":"United Global Durable Equities Fund Acc SGD","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","LU2592432038.USD":"WELLINGTON MULTI-ASSET HIGH INCOME \"A\" (USD) ACC","SG9999014013.SGD":"United Global Durable Equities Fund Dis SGD","LU0058720904.USD":"联博国际健康护理基金A","LU0251142724.SGD":"Fidelity America A-SGD","LU0345770308.USD":"NINETY ONE GSF GLOBAL STRATEGIC EQUITY \"A\" (USD) ACC","LU1489326972.SGD":"First Eagle Amundi International AHS-MD SGD-H","LU0006306889.USD":"SCHRODER ISF US LARGE CAP \"A\" (USD) INC AV","HUM":"哈门那","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU2505996681.GBP":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4H\" (GBPHDG) INC"},"translate_title":"Elevance Health 3个月内下跌20%：是时候出售股票了吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ELV":1,"HUM":1,"MOH":1},"content_text":"Elevance Health, Inc.’s ELV shares have lost 20% in the past three months compared with the industry’s 7.1% decline. It has also lagged the broader Zacks Medical sector’s 3.7% decline and the S&P 500’s 10.4% rise in the said time frame. It has a market cap of $95.8 billion. \nClosing at $425.39 in the last trading session, the stock of the health benefit company stands 25% below its 52-week high of $567.26.\nImage Source: Zacks Investment Research\n \nWhat’s Weighing on Elevance Health’s Performance?\nElevance Health has been grappling with a decline in medical membership due to member attrition in the Medicaid business, due to eligibility redeterminations and adjustments in Medicaid coverage areas across certain states. As of Sept. 30, 2024, overall membership declined 3% year over year. A decline in membership can dampen ELV’s premium growth, which accounts for a major portion of its top line. Renowned health insurers like Humana Inc. HUM and Molina Healthcare, Inc. MOH also have exposure to the Medicaid business line.\nElevance Health struggles with mounting expenses due to higher benefit costs and cost of products sold. An elevated expense level puts pressure on margins. For the first nine months of 2024, total expenses increased 1.9% year over year. Benefit expense inched up 1.2% year over year in the same time frame, while the cost of products sold escalated 10.3% year over year. ELV projects its benefit expense ratio for 2024 to be around 88.5%, which indicates a deterioration of 150 bps from the 2023 figure. \nA debt-laden balance sheet induces an increase in interest expenses for Elevance Health, which could take a toll on financial flexibility over time. As of Sept. 30, the company's long-term debt (excluding the current portion) was $24.7 billion, up 6.2% from the figure as of Dec. 31, 2023. In the first nine months of 2024, interest expenses increased 9.6% year over year.\nConcerns regarding financial flexibility also arise due to Elevance Health’s declining cash generation. In the first nine months of 2024, net cash from operations dropped 53.8% from the prior-year period, following a 4% fall in 2023. Continuation of this situation can hamper the company’s ability to undertake substantial investments to enhance digital capabilities and platforms, which seems to be of dire need amid a booming digital era.\nELV’s Revised Projections\nElevance Health has adjusted its projections for 2024, lowering its expected adjusted net income to a minimum of around $33.00 from the previous outlook of a minimum of $37.20. The revised guidance indicates a decline of 0.4% from the 2023 figure. During the past 30 days, ELV’s 2024 and 2025 earnings estimates have witnessed major downward revisions, thereby raising concerns among investors. The estimates declined 10.3% and 14.4%, respectively, in the same time frame. It beat earnings estimates thrice in the last four quarters and missed on one occasion, with the average negative surprise being 2.55%.\nImage Source: Zacks Investment Research\n \nHow Can ELV Power Through the Challenges?\nElevance Health is likely to experience benefits from its strategic initiatives, including expansion plans in the Individual state or federally-facilitated marketplaces in 2025. Buyouts will likely enhance the capabilities of the company. The Carelon unit benefits on the back of improved risk-based capabilities in Carelon Services and higher CarelonRx product revenues. Meanwhile, an aging population is expected to sustain the solid demand for its Medicare plans in the days ahead.\nElevance Health’s Valuation\nELV is trading at a discount compared with the industry average. It is currently trading at a forward 12-month price-to-earnings ratio of 12.03X, lower than the industry average of 14.66X.\nImage Source: Zacks Investment Research\n \nConclusion\nThough the stock seems undervalued at the moment, challenges such as unanticipated headwinds encountered in the Medicaid business, rising costs, high leverage, declining operating cash flows and downward earnings estimate revisions continue to persist for Elevance Health. Therefore, current investors might consider booking profits now. \nELV currently has a Zacks Rank #4 (Sell). \nYou can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nHumana Inc. (HUM) : Free Stock Analysis Report\nMolina Healthcare, Inc (MOH) : Free Stock Analysis Report\nElevance Health, Inc. (ELV) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2483056327"}