On July 23, Elevance Health rose 3.06% in pre-market trading, trading at $390.82/share, with turnover of $43,400. The stock continues its oversold recovery following the Q2 earnings release on July 15.

The company reported Q2 adjusted EPS of $7.45, significantly beating the market consensus of $6.21, while revenue of $49.83 billion also topped expectations. Full-year adjusted EPS guidance was raised to at least $27, above the prior $26.75 floor. On earnings day, shares initially plunged over 10% as investors focused on Medicaid utilization pressure and operating margin compression from 4.9% to 3.5% year-over-year. The CEO noted planned exits from additional Medicaid markets over the next 12-18 months.

Since then, multiple investment banks have raised price targets: Wells Fargo to $492, Truist to $475, and Guggenheim to $455. Truist lifted its EPS estimate to $27.12 for the current year and $29.14 for next year, citing strong Medicare Advantage and ACA performance. The current FactSet consensus target of $445.57 implies significant upside from the current price.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)