We recently published a list of 10 Best Telehealth Stocks to Buy Now. In this article, we are going to take a look at where Elevance Health, Inc. (NYSE:ELV) stands against other best telehealth stocks to buy right now.
Overview of the American Telehealth Industry
According to Grand View Research, the telehealth market size in the US was valued at $42.54 billion in 2024. It is expected to grow at a notable compound annual growth rate of 23.8% between 2025 and 2030. Some of the primary factors supporting this growth include the rising demand for remote healthcare services, large-scale penetration of connected home services, and high internet usage. In addition, the global adoption of smartphones, advancements in technology, and a surge in government initiatives to develop telehealth programs are also supporting market growth.
Since the cost of in-person healthcare provision is increasing in the country, telehealth presents a significant opportunity in the healthcare sector. According to McKinsey, around $250 billion of the present US healthcare spending can be virtualized. This includes training for medical professionals, regular check-in appointments for chronic diseases, psychiatric care, and more, all administered and accessed through each individual’s preferred device.
READ ALSO: 10 Best Mid Cap Biotech Stocks to Buy and 12 Best Diagnostics Stocks to Invest In Right Now.
Are Healthcare Stocks a Safe Haven Amid Tariff Turmoil?
Some experts view medical, healthcare, and big pharma stocks as immune from trade carnage, making them a safe haven amid the uncertainty brought about by Trump’s tariffs. Since Trump’s tariffs and macroeconomic uncertainties are causing significant market volatility, we discussed the potential of healthcare stocks as a safe haven amidst the ongoing turmoil in a recently published article on the 10 Best Medical Stocks to Buy According to Billionaires. Here is an excerpt from the article:
On April 8, Mizuho Securities America healthcare sector strategist Jared Holz opined that managed care, particularly the government-centric names, are somewhat safe as they are insulated from tariffs as US-based companies. In fact, the economic slowdown is actually beneficial for them as they want less utilization and less patience through the system, which is how they typically beat numbers. He said that managed care is having a good day, and investors might think about owning some companies in the sector.
It is, however, a relative game, as there are several different variables at play, and investors are essentially playing a game of hopscotch in an attempt to jump from one area to another, whether it’s tariffs, drug pricing, or other public policies. He painted a similar picture for medical device stocks that are more US-centric. These two sectors thus have less risk relative to others, making them somewhat of a safe haven.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 25 telehealth stocks and chose the top 10 most popular among hedge funds as of Q4 2024. The list is ordered in ascending order of hedge fund sentiment. We sourced the hedge fund sentiment data from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A medical professional working at a computer, utilizing the company’s digital solutions to improve care quality for consumers.
Elevance Health, Inc. (NYSE:ELV)
Number of Hedge Fund Holders: 73
Elevance Health, Inc. (NYSE:ELV) offers telehealth services to its customers, reporting in 2024 that the company conducted more than 800,000 virtual visits in 2023. This health company operates through the following segments: Health Benefits, CarelonRx, Carelon Services, and Corporate and Other. The Health Benefits segment offers a range of health plans and services, while the CarelonRx segment manages pharmacy services. The Carelon Services segment offers various healthcare-related services by integrating behavioral, physical, pharmacy, and social services.
On April 18, Leerink Partners analyst Whit Mayo reiterated a Buy rating on Elevance Health, Inc. (NYSE:ELV) and set a price target of $463.00. The analyst expressed confidence in the company’s full-year estimates, which remain unaffected despite the ongoing investor concern regarding Medicaid margin recovery and cost trends.
The company also has solid operations. It reported $45.0 billion in operating revenue in fiscal Q4 2024, reflecting an increase of $2.5 billion, or 6%, compared to the prior-year quarter. Operating income for the year reached $175.2 billion, up $5.0 billion, or 3%. This growth was attributed to higher premium yields in Elevance Health, Inc.’s (NYSE:ELV) Health Benefits segment, growth in CarelonRx product revenue, and acquisitions undertaken in 2024.
Artisan Select Equity Fund stated the following regarding Elevance Health, Inc. (NYSE:ELV) in its Q4 2024 investor letter:
“Elevance Health, Inc. (NYSE:ELV) took a couple of blows this quarter. First, it warned that its Medicaid earnings would come in below expectations this year. The Medicaid business has been in the spotlight as a result of COVID-19. Medicaid rolls filled up during the pandemic, but then rolls started to come down as enrollees lost eligibility when the economy began normalizing. This has made estimating the severity and health trends of the remaining population difficult. So far this year, cost trends have been much worse than expected and are out of line with Elevance’s approved rate structure. Margins in the Medicaid business, therefore, will be down this year, and overall profits are likely to be flat. We believe this is a temporary situation. State Medicaid programs are legally required to pay actuarially sound rates to the providers of Medicaid services, such as Elevance. Rates are expected, therefore, to move upward over the next 12 to 18 months, restoring Elevance’s margins to a more normal level.
The second issue for Elevance is investor sentiment. A mentally deranged young man murdered top executive of United Healthcare, the largest health insurer in the country. This led to an Internet frenzy of vicious, inaccurate and, frankly, deplorable criticisms of health insurance companies and their executives. Negative and controversial headlines tend to hurt share prices. This was true of Elevance’s stock in the aftermath of this heinous crime. The share price has fallen to extremely attractive levels, trading currently at about 11X earnings. We added to our position during this weakness.”
Overall, ELV ranks 3rd on our list of the best telehealth stocks to buy right now. While we acknowledge the potential for ELV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ELV but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
