Evaluating Elevance Health (ELV) After Expanded Virtual Assistant Push and Digital Growth Ambitions

Elevance Health (ELV) just widened access to its AI powered Virtual Assistant, a move aimed at making plan details and care options easier to navigate, and investors are watching how this digital push supports growth.

See our latest analysis for Elevance Health.

Despite the solid digital push, the market has been cautious, with a roughly 4 percent 1 month share price return and a weaker year to date trend, while the 3 year total shareholder return remains firmly negative. This suggests sentiment is still rebuilding rather than exuberant.

If Elevance's digital tools have you rethinking the broader healthcare opportunity set, this could be a good moment to explore other healthcare stocks that might fit your strategy.

With earnings still growing, the share price lagging recent highs, and analysts seeing upside to fair value, the key question now is whether Elevance is quietly undervalued or if the market already anticipates its next leg of growth.

Most Popular Narrative Narrative: 14.6% Undervalued

With the narrative fair value sitting above Elevance Health's last close of $330.75, the focus shifts to how long term earnings power is being modeled.

Analysts expect earnings to reach $7.4 billion (and earnings per share of $33.98) by about September 2028, up from $5.4 billion today. However, there is some disagreement amongst the analysts with the more bearish ones expecting earnings as low as $4.9 billion.

Read the complete narrative.

Want to see what justifies this richer earnings outlook? The narrative leans on rising margins, steady top line growth, and a lower future earnings multiple. Curious which levers really matter here?

Result: Fair Value of $387.16 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent Medicaid cost pressures and slower than expected rate recovery could delay margin normalization and challenge the current undervaluation thesis.

Find out about the key risks to this Elevance Health narrative.

Build Your Own Elevance Health Narrative

If you are not fully aligned with this view or want to dig into the numbers yourself, you can build a personalized thesis in minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Elevance Health.

Ready for your next investing move?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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