5 Most Undervalued Growth Stocks To Buy According To Analysts

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

Number of Hedge Fund Holders: 81

Average Analyst Price Estimate: $573

Recently, Morgan Stanley upgraded Elevance Health, Inc. (NYSE:ELV) to Overweight from In Line. The firm highlighted Elevance Health, Inc. (NYSE:ELV)’s acquisition of BioPlus.

During the first quarter of 2023 Elevance Health, Inc. (NYSE:ELV)’s adjusted EPS came in at $9.46, beating estimates by $0.17. Revenue jumped 10.6% year over year to $41.89 billion, surpassing analyst estimates by $960 million.

The biggest hedge fund stakeholder of Elevance Health, Inc. (NYSE:ELV) as of the end of March 2023 was Viking Global of Andreas Halvorsen which had a $991 million stake in the company.

Baron Health Care Fund made the following comment about Elevance Health, Inc. (NYSE:ELV) in its Q1 2023 investor letter:

“Elevance Health, Inc. (NYSE:ELV) is a leading health benefits company in the U.S., serving more than 45 million members through its affiliated health plans under the Blue Cross/Blue Shield brand in 14 states. Shares fell along with those of other managed care companies on investor concerns over proposed lower 2024 Medicare Advantage (MA) rates and changes in risk assessment methodology. We believe Elevance has multiple growth drivers, including its MA business, its in-house pharmacy benefit management business, and its Diversified Business Group, which includes behavioral health, advanced analytics, and complex and chronic care services. Near term, medical cost trends remain low, Elevance has pricing power, and earnings should benefit from rising interest rates. Over the long term, management targets 12% to 15% annual EPS growth. We think Elevance is a high-quality growth company trading at a reasonable valuation.”

You can also take a peek at 10 Most Profitable Small Businesses in 2023 and 10 Best April Dividend Stocks To Buy.