5 Most Undervalued Healthcare Stocks To Buy According To Hedge Funds

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

TTM PE Ratio as of October 26: 17.5

Number of Hedge Fund Holders: 82

Elevance Health, Inc. (NYSE:ELV) is an American health insurance provider. It was founded in 2004 and is headquartered in Indiana. In Q2, First Eagle Investment Management owned 1.8 million of the company shares worth $802 million and was the most prominent stakeholder in Elevance Health, Inc. (NYSE:ELV).

In the third quarter, Elevance Health, Inc. (NYSE:ELV) exceeded its EPS estimates by $0.53 after posting an EPS of $8.99. However, the company lagged behind its revenue forecasts by $220 million and generated a revenue of $42.5 billion. For FY 2023, Elevance Health, Inc. (NYSE:ELV) expects GAAP net income per share to be greater than $26.40 and adjusted net income to be greater than $33 per share.

Along with reporting its earnings, Elevance Health, Inc. (NYSE:ELV) also declared a quarterly dividend of $1.48 per share on October 18. The dividend will be payable by December 21 to the shareholders of record on December 5.

ClearBridge Large Cap Value Strategy made the following comment about Elevance Health, Inc. (NYSE:ELV) in its Q3 2023 investor letter:

“Our health care positioning also fared well. We continue to maintain an overweight position to managed care companies via long-term holdings in UnitedHealth and Elevance Health, Inc. (NYSE:ELV), as we believe the short cycle nature of their insurance franchises allows them to reprice their book of business in a relatively short time frame, even if health care costs come in higher than previously anticipated.”