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Elevance: Pave The Way For The Next UnitedHealth

Sep. 20, 2023 11:05 PM ETElevance Health, Inc. (ELV)CI, UNH7 Comments
Ethan Coyle profile picture
Ethan Coyle


  • Brand recognition combined with the leading market share of Blue Cross Blue Shield generates a strong competitive moat.
  • Value-based care and increased adoption of Carelon may drive double-digit EPS growth over the next 5-years.
  • Consolidation of vendors will drive cost-savings and margin improvement.
  • Management's capital allocation strategy has provided stellar growth and value to shareholders.
Blue Cross Blue Shield headquarters signage and logo. Blue Cross Blue Shield is a federation of health insurance organizations I


Company Overview:

Elevance (NYSE:ELV) is the leading health insurer providing over 48 million medical benefits to customers in the U.S. The company is the single provider of Blue Cross Blue Shield (BCBS) having exclusive licenses in 14 states and owns the Anthem

This article was written by

Ethan Coyle profile picture
I am a long-term investor and make investment analyses based on a multitude of valuation methodologies, including Discounted cash flow to equity models, Multiplies Analysis, and exit multiples. I am currently working towards getting my CFA charter.

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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (7)

Excellent article. Any views on earning growth rates for 10 year period?
Ethan Coyle profile picture
@Mohit7269 I typically stick to a 3 or 5-year period. My best judgment on a 10-year period would be in the high-single-digit to low-double-digit for Elevance's adjusted EPS growth.
Dr.DaveR profile picture
Start averaging down sub 430
SuperPac profile picture
'With extreme pessimism surrounding MCOs, we believe that Elevance is trading at an attractive valuation for the company’s long-term growth potential.''
Yesterday, when the market sank a bit toward the last hour after Powell's speech I hope people noticed how ELV went up 2.3%. Most stocks were in red. (UNH and HUM rose too.) I have seen this pattern several times earlier too. So there is a defensive quality to these stocks.

When all is said and done, these companies like ELV and UNH, over the longer haul, are beneficiaries of federal spending on healthcare which, given the demographic changes taking place, will increase in the years ahead.

Dr.DaveR profile picture
@SuperPac nothing beats a 1 day sample to guide investments
SuperPac profile picture
A fool and his cash are soon parted. Remember that while making a decision next time. Not that it will matter.
Great company, valuation quite limited due to this years rotation into tech. Multiples will go up again in the future. However, since I am already holding CI and UNH I am hesitant to enter this one purely for portfolio risk management purposes.
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