Elevance Health: Continues To Grow, A Strong Buy
Summary
- Elevance Health has outperformed the S&P 500 by far over the past 20 years.
- Rising interest rates coupled with strongly growing membership numbers are both two strong growth catalysts for Elevance Health.
- Management expects a CAGR of 12-15% from 2020 to 2025 and raised the outlook for 2022.
- Management has rewarded shareholders well over the years through dividends and share buyback programs.
- The valuation is in line with the managed health care sector and is undervalued compared to the S&P 500.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of ELV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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