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Elevance Health (ELV) Outperforms Broader Market: What You Need to Know

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Elevance Health (ELV - Free Report) closed at $483.12 in the latest trading session, marking a +0.76% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.59%. Elsewhere, the Dow saw an upswing of 0.82%, while the tech-heavy Nasdaq appreciated by 0.55%.

Prior to today's trading, shares of the health insurer had gained 6.2% over the past month. This has outpaced the Medical sector's gain of 5.51% and lagged the S&P 500's gain of 9.16% in that time.

Market participants will be closely following the financial results of Elevance Health in its upcoming release. It is anticipated that the company will report an EPS of $5.60, marking a 7.07% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $41.97 billion, indicating a 5.8% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $33.04 per share and a revenue of $169.83 billion, indicating changes of +13.66% and +9.1%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Elevance Health. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% decrease. Elevance Health is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Elevance Health is currently being traded at a Forward P/E ratio of 14.51. This valuation marks a discount compared to its industry's average Forward P/E of 20.39.

Investors should also note that ELV has a PEG ratio of 1.2 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical Services industry currently had an average PEG ratio of 1.66 as of yesterday's close.

The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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