A strong stock as of late has been Elevance Health (ELV Quick QuoteELV - Free Report) . Shares have been marching higher, with the stock up 9.4% over the past month. The stock hit a new 52-week high of $440.67 in the previous session. Elevance Health has gained 25.6% since the start of the year compared to the 5.4% move for the Zacks Medical sector and the 8.6% return for the Zacks Medical Services industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 21, 2026, Elevance Health reported EPS of $6.99 versus consensus estimate of $4.66.

For the current fiscal year, Elevance Health is expected to post earnings of $27.2 per share on $195.52 in revenues. This represents a -10.2% change in EPS on a -1.04% change in revenues. For the next fiscal year, the company is expected to earn $29.41 per share on $200.28 in revenues. This represents a year-over-year change of 8.14% and 2.43%, respectively.

Valuation Metrics

Though Elevance Health has recently hit a 52-week high, what is next for Elevance Health? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Elevance Health has a Value Score of A. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 16.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 17.6X. On a trailing cash flow basis, the stock currently trades at 11.7X versus its peer group's average of 11.4X. Additionally, the stock has a PEG ratio of 2.29. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Elevance Health an interesting choice for value investors.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Elevance Health currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Elevance Health meets the list of requirements. Thus, it seems as though Elevance Health shares could still be poised for more gains ahead.

How Does ELV Stack Up to the Competition?

Shares of ELV have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Concentra Group Holdings Parent, Inc. (CON Quick QuoteCON - Free Report) . CON has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of D.

Earnings were strong last quarter. Concentra Group Holdings Parent, Inc. beat our consensus estimate by 23.81%, and for the current fiscal year, CON is expected to post earnings of $1.65 per share on revenue of $2.35 billion.

Shares of Concentra Group Holdings Parent, Inc. have gained 11.1% over the past month, and currently trade at a forward P/E of 23.48X and a P/CF of 19.42X.

The Medical Services industry may rank in the bottom 66% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for ELV and CON, even beyond their own solid fundamental situation.