At the time of the market’s closing, Elevance Health (ELV) was at $454.11 and had a +0.13 percentage gain over the prior day. The change in the stock was greater than the S&P500’s daily decline of 0.5 percent. In contrast the Dow gained 0.12 percent, while the tech-oriented Nasdaq dropped by 1.23 percent.
The health insurance shares have increased by 2.06 percent over the course of the last month, beating the Medical sector’s decline of 4.84 percent as well as the benchmark S&P 500’s decline of 2.4 percent.
Market people will be keeping an eye on the financial performance from Elevance Health in its upcoming announcement. The company will reveal its earnings on the 18th of the 18th of October 2023. Earnings per share (EPS) will be $8.45 that is an 12.22 percentage increase over the same period last year. In the same way the most recent consensus estimate predicts the revenue to be $42.53 billion, which represents an 7.33 percent increase over the same quarter in the year before.
For the whole year, the Zacks Consensus estimates project the earnings to be $32.91 per share, and revenues in the range of $169.87 billion, which represents variations of +13.21 percent and +9.13 percent, respectively when compared to the prior year.
Furthermore, investors must keep an watch for any recent changes of analyst estimates for Elevance Health. Recent revisions typically reflect the changing character of the business’s short-term trends. In turn we can see positive revisions to estimates as a positive indicator of the business outlook of the company.
Our study suggests that these shifts in estimates are in direct correlation to the upcoming performance of stocks. To take advantage of this, we’ve created an algorithm called the Zacks Rank, a quantitative model that incorporates the changes in estimates and provides a feasible rating system.
Its Zacks Rank system, which is a range of the #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outside audits of outperformance, with the #1 stocks producing the average of 25 percent since 1988. In the meantime, the Zacks Consensus EPS estimate remained unchanged over the last month. As of now, Elevance Health boasts a Zacks Rank of #2 (Buy).
In terms of the valuation of Elevance Health, Elevance Health is currently trading at the Forward P/E ratio 13.78. This represents a reduction when compared to the average Forward P/E rate of 20.62 for the industry it is in.
It is worth noting that ELV has an PEG ratio that is 1.14. This metric is comparable to the well-known P/E ratio, the distinction being that the PEG ratio takes into account the expected growth of earnings rate. In the Medical Services industry had an average PEG ratio of 1.69 when trading ended yesterday.
The Medical Services sector is a one of many sectors within the medical industry. This sector currently has an Zacks Industry Rank of 98 and is within the top 39% of the 250plus industries.
The Zacks Industry Rank gauges the strengths of our various industries by comparing an median Zacks Rank of the individual stocks in the group. Our research indicates that the top 50% of rated industries outperform the lower 50% by a ratio of 2:1.
Remember to count on Zacks.com to monitor all of these metrics that affect stocks as well as other metrics, in the following trading sessions.