Diverging Views on Elevance Health Stock Signal Investor Uncertainty

Anthem US0367521038

The equity of healthcare behemoth Elevance Health, the entity formerly operating as Anthem, is currently at the center of conflicting market signals. Fundamental metrics suggest the stock could be undervalued, yet institutional investors are taking starkly opposing actions. This divergence presents a complex picture for market participants.

These institutional moves are occurring against a backdrop of strong corporate performance. For Q3 2025, Elevance Health delivered results that comfortably exceeded market expectations. The company reported earnings per share (EPS) of $6.03, surpassing the consensus estimate of $5.03 by a full dollar. Revenue saw a 12% year-over-year increase to $50.09 billion, also beating forecasts. Operational efficiency is highlighted by a net margin of 2.84% and a return on equity of 16.17%.

Institutional Investors Show a Clear Split

Recent regulatory filings reveal a significant divide among major money managers. On one side, Massachusetts Financial Services Co. MA substantially increased its stake during the third quarter. The firm purchased over 112,000 additional shares, bringing its total holding to a value of approximately $788.6 million—a 4.8% increase.

In a contrasting move, SG Americas Securities LLC nearly exited its position in Elevance Health entirely. The firm sold 105,403 shares in the same quarter, slashing its holdings by 96.6%. This clear opposition underscores the current lack of consensus among professional investors regarding the stock's trajectory.

Valuation Metrics Hint at Potential Opportunity

The current valuation presents a compelling point of analysis. Trading at $374.87 (as of January 16, 2026), the stock carries a price-to-earnings (P/E) ratio of 15.06. This figure sits notably below the industry average of 23.49 and is also lower than the peer group average of 22.92. A separate discounted cash flow (DCF) analysis points to an estimated intrinsic value of around $1,011.50 per share, implying a potential undervaluation of 62.9%.

Recent share price performance has been mixed. While the stock has advanced 10.0% over the past 30 days, it shows a slight decline of 0.8% over a one-year period. Its 52-week range spans from a low of $273.71 to a high of $458.75.

Analyst Consensus Points to Moderate Upside

The analyst community currently assigns Elevance Health a consensus rating of "Moderate Buy." The average price target stands at $400.85. Several firms express more bullish outlooks: Barclays raised its target to $404, while Mizuho set a target of $413. Wolfe Research upgraded the stock to "Outperform" with a $425 price target, citing the company's "compelling path forward."

Market attention now turns to the upcoming earnings release for Q4 2025, scheduled for January 28, 2026. These results are anticipated to provide fresh momentum and will test the validity of the current analyst optimism surrounding this healthcare giant.