Elevance Health ELV is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey.
Analysts have taken a bearish stance on the company’s outlook, landing the stock into a Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Let’s take a closer look at how the company stacks up.
ELV Cuts Guidance
ELV’s latest set of quarterly results came in weak, causing shares to plunge post-earnings. The company trimmed its current year outlook, with ELV also falling short of the Zacks Consensus EPS estimate by more than 3%.
The stock has underperformed in a big way overall in 2025, losing roughly 15% compared to the S&P 500’s 14.6% gain.
Image Source: Zacks Investment Research
Concerning the above-mentioned release, adjusted EPS fell 13% year-over-year, whereas sales of $49.4 billion grew 14% from the same period last year. Due to the ongoing and industry-wide impact of elevated cost trends in ACA and Medicaid, ELV now expects 2025 adjusted EPS well lower than the announced (and reaffirmed) guidance range of $34.15 - $34.85 given near the beginning of June.
The steep guidance cut after a reaffirmation just near the beginning of June is certainly notable. Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Bottom Line
Negative earnings estimate revisions, stemming from trimmed guidance, paint a challenging picture for the company’s shares in the near term.
Elevance Health ELV is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
