10 Best Health Insurance Stocks to Buy

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

Number of Hedge Fund Holders: 73

Elevance Health, Inc. (NYSE:ELV), formerly known as Anthem, Inc., is a leading health benefits company in the U.S., operating Blue Cross and Blue Shield plans in 14 states with licenses to sell health insurance nationwide. The company’s stock recently reached a record high of $555.42.

For the second quarter of 2024, Elevance Health, Inc. (NYSE:ELV) reported GAAP diluted earnings per share of $9.85 and adjusted diluted earnings per share of $10.12, reflecting a 12% year-over-year increase. The company ended the quarter with 45.8 million members, largely impacted by a decline in Medicaid enrollment. Looking ahead, Elevance Health is targeting an operating margin of 6.5% to 7% by 2027 and expects to achieve upper single-digit to low double-digit growth in annual operating earnings over time.

As of the end of the June 2024 quarter, 73 hedge funds tracked by Insider Monkey held stakes in Elevance Health, Inc. (NYSE:ELV), a decrease from 79 in the previous quarter. The collective value of these stakes exceeds $5.39 billion.

Artisan Select Equity Fund stated the following regarding Elevance Health, Inc. (NYSE:ELV) in its Q2 2024 investor letter:

“The top contributors to performance for the quarter were Alphabet, Lam Research and Elevance Health, Inc. (NYSE:ELV). Elevance shares rose 5% during the quarter. The business has been performing well and has delivered good profit growth this year, despite a flat top line. It has largely navigated the challenges related to Medicaid redeterminations, which have caused temporary volatility in membership and health care utilization levels. Its vertical integration strategy is gaining traction, with strong revenue and profit growth at its Carelon Services business. Elevance’s shares are trading at 13X earnings, which is a very attractive investment proposition for a durable business that expects long-term earnings growth of over 12%.”