15 Best Magic Formula Stocks to Invest In

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13. Elevance Health, Inc. (NYSE:ELV)

Gotham Asset Management’s Q1 2025 Stake: $30.7 million

Number of Hedge Fund Holders: 75

Elevance Health, Inc. (NYSE:ELV) ranks among the best magic formula stocks to invest in. Wells Fargo kept its Overweight rating on Elevance Health, Inc. (NYSE:ELV) on July 15, but lowered its price target on the health insurer from $478 to $400. Wells Fargo applied a lower multiple of 10.5x to its 2026 earnings per share projection of $38.05, which is less than the previous multiple of 11.5x.

Wells Fargo stated that the primary driver of the reduced value multiple was uncertainty regarding margins in the Medicaid, Medicare Advantage (MA), and Health Insurance Exchange (HIX) segments for 2025.

The firm also pointed out that there was “relatively low visibility to improvement in 2026,” especially in the Medicaid and Health Insurance Exchange segments. However, it insisted that Elevance’s valuation “remains compelling once dust settles on estimates.”

Elevance Health, Inc. (NYSE:ELV), previously Anthem, Inc., is a leading health-benefits provider in the United States. The company offers medical, pharmaceutical, dental, long-term care, disability, and behavioral health insurance under numerous brands, including Anthem Blue Cross, Blue Shield, Wellpoint, and Carelon.

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