These 10 Stocks Just Lost Their Spark

1. Elevance Health, Inc. (NYSE:ELV)

Elevance Health dropped its share prices by 12.22 percent on Thursday to close at $302.45 apiece following dismal earnings performance in the second quarter of the year.

In its earnings release, Elevance Health, Inc. (NYSE:ELV) said net income during the period dropped by 24.2 percent to $1.744 billion from $2.301 billion in the same period last year, pushing its six-month net earnings lower by 13.7 percent to $3.928 billion from $4.55 billion year-on-year.

Revenues for the second quarter, however, increased by 13.4 percent to $49.776 billion from $43.886 billion year-on-year, while revenues for the first half of the year grew by 14.1 percent to $98.667 billion from $86.463 billion year-on-year.

Looking ahead, Elevance Health, Inc. (NYSE:ELV) also lowered its guidance amid elevated medical cost trends in Obamacare and slower rate alignment in Medicaid.

Given the industry-wide impact of elevated cost trends, the company said it now expects 2025 GAAP net income per diluted share to be approximately $24.10 and adjusted net income per diluted share to be approximately $30.

While we acknowledge the potential of ELV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ELV and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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