What If You Were Missing The Value In ELV Stock?

Here is why we think Elevance Health (ELV) deserves consideration as a value stock.

• Reasonable Revenue Growth: 6.6% LTM and 8.3% last 3 year average.
• Cash Generative: Nearly 2.0% free cash flow margin and 0.0% operating margin LTM.
• No Major Shocks: ELV has avoided any large revenue collapses.
• Modest Valuation: Despite encouraging fundamentals, ELV trades at a PE multiple of 14.9
• Opportunity vs S&P: Compared to S&P, you get lower valuation, higher revenue growth, and lower margins

Elevance Health provides comprehensive health benefits and solutions—medical, digital, pharmacy, behavioral, and clinical—serving 118 million people to support healthier lives and care journeys.

*LTM: Last Twelve Months

But do these numbers tell the full story? Read Buy or Sell ELV Stock to see if Elevance Health still has an edge that holds up under the hood.

That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure

Stocks Like These Can Outperform. Here Is Data

For 65 similar value stocks chosen as of mid 2024, consider the following stats for the subsequent 1 year period.

• Average peak return of 39.3% vs 14.4% for S&P, with maximum peak return of 133%
• Win rate of 60%; win rate represents % of stocks with positive return
• Average 1-year return of 14.6%, similar to S&P’s despite tariff instability

But Consider The Risk

That said, ELV isn’t immune to big drops. It lost about 67% during the Global Financial Crisis, 43% in the Covid pandemic sell-off, and 25% in the 2018 correction. Even the recent inflation shock gave it a 24% dip. So, despite all the positives, ELV can take a serious hit when markets turn south. Good fundamentals only go so far when panic sets in.

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read ELV Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.