12 Cheap Healthcare Stocks to Buy Heading into 2025

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

P/E Ratio: 13.62 

Elevance Health, Inc. (NYSE:ELV), formerly Anthem, Inc., is a leading U.S. health insurance and benefits provider. It offers medical, pharmaceutical, dental, behavioral health, long-term care, and disability plans through affiliates like Anthem Blue Cross, Wellpoint, and Carelon710. Focused on “whole health,” the company addresses physical, behavioral, and social needs to improve overall health and well-being.

Elevance Health, Inc. (NYSE: ELV) posted solid financial fundamentals despite difficulties in Q3 2024. Adjusted diluted profits per share were $8.37, and total operating revenue was $44.7 billion, up 5% year over year. However, the company’s Medicaid division had high medical costs, which resulted in a lowered full-year 2024 outlook of about $33 adjusted diluted EPS. With high single-digit percentage increases and at least 12% annual growth in adjusted diluted EPS, the company anticipates robust revenue growth in 2025. With plans to buy Kroger Specialty Pharmacy, expand its individual and family ACA plans in Florida, Maryland, and Texas, and enter three more states with individual exchange products, the firm is pursuing strategic expansion.

Elevance Health, Inc. (NYSE:ELV) introduced its 2025 Medicare Advantage Plans on October 1st, providing over 40.3 million eligible consumers in 23 states with customizable benefits and flexible options. 2.9 million Medicare beneficiaries are now served by the company’s linked health plans, and by 2025, the corporation hopes to offer individualized care that goes beyond medical treatment.

Artisan Partners’ 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 healthcare 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%.”