Elevance Health Stock Drop Looks Sharp, But How Deep Can It Go?
Elevance Health (ELV) stock is down 5.1% in 21 trading days. The recent slide reflects renewed concerns around rising medical costs and declining Medicaid membership, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Elevance Health stands today.
- Size: Elevance Health is a $74 Bil company with $195 Bil in revenue currently trading at $330.91.
- Fundamentals: Last 12 month revenue growth of 12.0% and operating margin of 0.0%.
- Liquidity: Has Debt to Equity ratio of 0.43 and Cash to Assets ratio of 0.29
- Valuation: Elevance Health stock is currently trading at P/E multiple of 13.4 and P/EBIT multiple of 8.7
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 85.7% within a year. See ELV Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Low valuation – making the stock Attractive. For details, see Buy or Sell ELV Stock
That brings us to the key consideration for investors worried about this fall: how resilient is ELV stock if markets turn south? This is where our downturn resilience framework comes in. Suppose ELV stock falls another 20-30% to $232 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- ELV stock fell 24.3% from a high of $546.77 on 31 October 2022 to $414.13 on 12 July 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 17 May 2024
- Since then, the stock increased to a high of $562.29 on 3 September 2024 , and currently trades at $330.91
| ELV | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -24.3% | -25.4% |
| Time to Full Recovery | 310 days | 464 days |
2020 Covid Pandemic
- ELV stock fell 43.2% from a high of $307.74 on 10 January 2020 to $174.68 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 October 2020
| ELV | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -43.2% | -33.9% |
| Time to Full Recovery | 214 days | 148 days |
2018 Correction
- ELV stock fell 25.6% from a high of $317.42 on 26 February 2019 to $236.25 on 17 April 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 4 November 2020
| ELV | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -25.6% | -19.8% |
| Time to Full Recovery | 567 days | 120 days |
2008 Global Financial Crisis
- ELV stock fell 67.2% from a high of $89.72 on 24 December 2007 to $29.44 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 15 November 2013
| ELV | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -67.2% | -56.8% |
| Time to Full Recovery | 1821 days | 1480 days |
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