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Elevance Health - AI Stock Analysis
Analysis generated May 13, 2025
Elevance Health, previously known as Anthem Inc., operates as a health insurance provider in the United States. The company serves a broad spectrum of customers including individuals, families, and corporations. It focuses on delivering healthcare solutions encompassing medical and specialty products. Elevance Health aims to improve the health of communities by providing tailored healthcare plans and solutions.
Fundamental Analysis
Revenue: For the last quarter, Elevance Health reported a revenue of $48.9 billion. This implies a quarter-over-quarter growth of 7.59% and a 14.83% increase year-over-year, indicating a healthy growth trajectory for the company.
Net Income: The net income for the last quarter stood at $2.18 billion, marking a staggering 422.25% increase from the previous quarter. However, this was a 2.80% decrease compared to the same quarter last year, which might raise some concerns about Profit margins over the past year.
EBITDA: The EBITDA soared to $38.6 billion last quarter, showcasing an astronomical increase of 2,772.62% compared to the previous quarter and 992.16% year-over-year. These numbers signal substantial improvement in operational performance.
P/E Ratio: The current P/E ratio is 15.74, indicating that the stock is neither undervalued nor overvalued, standing within a normal range for the industry.
It is noteworthy that there have been several instances of insider selling in the past few months, which could be perceived as a bearish signal by potential investors.
Technical Analysis
Stock Price: The current stock price is $389.89, reflecting a significant 11.35% drop from a month ago. More concerning is the 26.02% decrease compared to a year ago, indicating a troubling long-term downtrend.
Moving Averages: The current SMA10 is $409.04, lower than the previous SMA10 of $411.05, suggesting a potential downward trend in price movement.
Relative Strength Index (RSI): At 35.7, the RSI suggests neutral conditions, but it is nearing oversold territory, potentially indicating a buying opportunity if further decline occurs.
The overall technical indicators project a bearish trend, raising caution for potential investors.
Alternative Data Analysis
Job Postings & Employee Sentiment: Elevance Health currently has 590 open positions, up by 9% in recent months, indicating growth ambitions. Employee sentiment towards the company's business outlook is neutral.
Customer Acquisition: The company’s webpage has about 370,000 visitors with no significant change in the past few months. Its mobile app downloads are also stagnant at zero new downloads per day.
Customer Engagement: Elevance Health's Twitter following is at 35,000, a slight decrease of 1% recently. This could be interpreted as declining interest in the company's activities and offerings.
Additionally, AltIndex’s AI score, which gauges stock performance based on fundamental, technical, and alternative data analysis, gives Elevance Health a score of 54, a hold signal.
Conclusion & Recommendation
Elevance Health presents a mixed bag for potential investors. On the fundamental front, the company shows impressive revenue and EBITDA growth, despite a slight year-over-year net income decline. Technical analysis indicates a bearish trend, as evidenced by the downward movement in stock price and moving averages. The RSI is neutral but nearing oversold conditions. Alternative data showcases the company’s growth intentions, though it lacks momentum in customer engagement metrics.
Given these mixed signals, the current recommendation is to hold. Potential investors should closely monitor upcoming earnings reports and technical indicators before making any decisions. The situation may improve or worsen based on future performance and market conditions.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
