UBS Reaffirms Buy on Elevance Despite Adjusted 2025 Earnings Outlook

Elevance Health, Inc. (NYSE:ELV) ranks among the best fundamental stocks to buy according to hedge funds. On June 17, UBS reaffirmed its Buy rating and $555 price target for Elevance Health, Inc. (NYSE:ELV), even after the company modified its 2025 earnings distribution. Elevance Health, Inc. (NYSE:ELV) originally predicted that first-half earnings would account for 62–63% of full-year results. However, the company now expects them to account for 60%.

UBS Reaffirms Buy on Elevance Despite Adjusted 2025 Earnings Outlook

In order of significance, Elevance Health, Inc. (NYSE:ELV) identified three factors that impacted second-quarter earnings expectations: higher underlying clarity in Affordable Care Act (ACA) populations after membership erosion, out-of-network billing difficulties in behavioral health services centered on exchanges, and Medicaid cost trends not slowing down as quickly as expected.

To address these second-quarter trends, Elevance Health, Inc. (NYSE:ELV) is looking into ways to minimize expenses in order to boost performance in the second half of the year.

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.

While we acknowledge the potential of ELV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.