10 Best Health Insurance Stocks to Buy

3. Elevance Health, Inc. (NYSE:ELV)

Number of Hedge Fund Holders: 79

Formerly known as Anthem, Inc., Elevance Health, Inc. (NYSE:ELV) is a health benefits company operating in the United States through its subsidiaries. The company manages Blue Cross and Blue Shield plans in 14 states and holds licenses to sell health insurance nationwide. Elevance offers a variety of health plans, including employer-sponsored and individual plans, Medicare Advantage, Medicare supplements, and Medicaid.

Earlier this April, Mizuho Securities revised its financial outlook for Elevance Health, Inc. (NYSE:ELV), raising the stock’s price target to $585 from the previous $575 while maintaining a Buy rating. This decision followed an analysis of Elevance Health, Inc. (NYSE:ELV)’s adjusted earnings per share estimates for the upcoming years. Mizuho increased its adjusted EPS estimates for Elevance Health, Inc. (NYSE:ELV) to $37.30 for 2024 and $41.60 for 2025, up by $0.10. However, the firm’s 2026 EPS forecast remained unchanged at $46.35, indicating an 11% year-over-year growth. Additionally, Mizuho’s Medical Loss Ratio (MLR) estimate for Elevance Health, Inc. (NYSE:ELV) stood at 87.0% for 2024, supported by a first-quarter MLR of 85.6%, which met expectations. Elevance Health, Inc. (NYSE:ELV)’s recent collaboration with the private equity firm Clayton, Dubilier & Rice (CD&R) also aims to expand its primary care services, a move Mizuho views positively as it complements the health benefits company’s existing value-based and primary care offerings.

At the end of the March quarter of this year, 79 hedge funds in Insider Monkey’s database reported having stakes in Elevance Health, Inc. (NYSE:ELV), down from 83 in the preceding quarter. Their collective stake value is over $5.73 billion.