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Bear of the Day: Elevance Health (ELV)

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Elevance Health (ELV - Free Report) is a lifetime, trusted health partner whose purpose is to improve the health of humanity. The company supports consumers, families, and communities across the entire healthcare journey.

Analysts have taken a bearish stance on the company’s outlook, landing the stock into a Zacks Rank #5 (Strong Sell).

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s take a closer look at how the company stacks up.

ELV Cuts Guidance

ELV’s latest set of quarterly results came in weak, causing shares to plunge post-earnings. The company trimmed its current year outlook, with ELV also falling short of the Zacks Consensus EPS estimate by more than 3%.

The stock has underperformed in a big way overall in 2025, losing roughly 15% compared to the S&P 500’s 14.6% gain.

Zacks Investment Research
Image Source: Zacks Investment Research

Concerning the above-mentioned release, adjusted EPS fell 13% year-over-year, whereas sales of $49.4 billion grew 14% from the same period last year. Due to the ongoing and industry-wide impact of elevated cost trends in ACA and Medicaid, ELV now expects 2025 adjusted EPS well lower than the announced (and reaffirmed) guidance range of $34.15 - $34.85 given near the beginning of June. 

The steep guidance cut after a reaffirmation just near the beginning of June is certainly notable. Below is a chart illustrating the company’s sales on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Negative earnings estimate revisions, stemming from trimmed guidance, paint a challenging picture for the company’s shares in the near term.

Elevance Health (ELV - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.

For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.


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