Elevance Health, Inc. (NYSE:ELV) has recently been highlighted as one of the best fundamental stocks to buy according to hedge funds. Despite some adjustments to its 2025 earnings outlook, UBS reaffirmed its Buy rating and $555 price target for the company. Originally, Elevance Health had predicted that first-half earnings would make up 62-63% of full-year results, but they have since revised this to 60%.
The company has identified three key factors that have impacted its second-quarter earnings expectations. These include higher clarity in Affordable Care Act (ACA) populations following membership erosion, challenges with out-of-network billing in behavioral health services, and Medicaid cost trends that are not decreasing as quickly as anticipated. In response to these trends, Elevance Health is exploring ways to reduce expenses in order to improve performance in the second half of the year.
Formerly known as Anthem, Inc., Elevance Health is a prominent health benefits provider in the United States. The company offers a wide range of insurance services including medical, pharmaceutical, dental, long-term care, disability, and behavioral health coverage under various brands such as Anthem Blue Cross, Blue Shield, Wellpoint, and Carelon.
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For more information on top-performing stocks, readers can explore articles on the 10 Best Magic Formula Stocks for 2025 and the 10 Best Retirement Stocks to Buy According to Hedge Funds. As always, it is important to conduct thorough research and due diligence before making any investment decisions.
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