Elevance Health, Inc. (NYSE: ELV) has seen notable movement in its stock price and operational performance in recent months. The company, one of the leading U.S. health insurers based in Indianapolis, recorded a 13% increase in its stock value over the past three months. This surge comes amid a series of encouraging financial results and effective management of operational costs.
Return on equity (ROE) remains a key indicator of Elevance Health’s financial health. For the twelve months ending December 2023, the company posted an ROE of 15%, meaning Elevance generated $0.15 in profit for every $1 of equity. This performance is in line with the healthcare insurance industry average, which stands at 14%. However, over the past five years, Elevance Health’s net income growth has averaged just 4.5% per year, somewhat modest but still above the industry average of 3.7%.
The company’s payout policy reflects a commitment to sustaining future growth. With a median payout ratio of 17%, Elevance Health retains a majority of its earnings, reinvesting in the business. Despite retaining a significant portion of profits, there has not been robust earnings growth, which may point to industry headwinds or broader business challenges. Nonetheless, the company has a track record of consistent dividend payments for at least a decade, underscoring management’s focus on shareholder returns.
Recent quarterly results have further highlighted the company’s strong performance. In the third quarter of 2025, Elevance Health reported adjusted earnings per share (EPS) of $6.03, significantly exceeding analysts’ expectations of $4.93. The outperformance was largely attributed to successful management of medical costs, as reflected in a medical loss ratio of 91.3%, better than the anticipated 91.73%. This performance triggered a more than 7% rally in the company’s shares in premarket trading following the earnings release. (Reuters)
Looking at the second quarter of 2025, Elevance Health posted operating revenue of $49.4 billion, representing a 14.3% increase compared to the same period in 2024. Adjusted diluted EPS for the quarter was $8.84. However, the company revised its full-year guidance for 2025, forecasting adjusted diluted EPS to be approximately $30.00. This revision was primarily due to higher medical cost trends in the Affordable Care Act (ACA) segment and slower rate alignment in Medicaid. (Elevance Health, Inc.)
With regard to market sentiment, Wall Street remains measured about Elevance Health’s prospects. On October 14, 2025, Morgan Stanley maintained its "Equal-Weight” recommendation on the stock, setting an average one-year price target of $373.55—a potential 6.63% upside from the latest closing price of $350.34. (Nasdaq) As of November 7, 2025, the stock is trading at $314.44, down $3.51 (1.10%) from the prior close.
Elevance Health’s current standing illustrates a company with robust fundamentals, demonstrated by steady returns and disciplined cost control. Analysts anticipate future earnings to improve further, continuing a trend of prudent financial management and strategic reinvestment. Investors and industry watchers can find additional insights in the recent analysis of Elevance Health’s fundamentals and forecasts.
Overall, Elevance Health has delivered consistent results amid some volatility and shifting industry conditions. As the business continues to focus on managing costs and delivering value to shareholders, the market appears to reflect confidence in its underlying financial strength. However, analysts urge stakeholders to evaluate future performance against both broader industry trends and company-specific growth drivers.