What Makes Elevance Health (ELV) an Attractive Stock?

·3 min read

Ruane, Cunniff & Goldfarb, an investment adviser managing Sequoia Fund, released its Q4 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 8.81% compared to a 7.56% return for the S&P 500 Index. The fund returned -30.52% in 2022 compared to -18.11% for the index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Sequoia Fund highlighted stocks like Elevance Health Inc. (NYSE:ELV) in the Q4 2022 investor letter. Headquartered in Indianapolis, Indiana, Elevance Health Inc. (NYSE:ELV) is a health benefits company. On March 20, 2023, Elevance Health, Inc. (NYSE:ELV) stock closed at $466.99 per share. One-month return of Elevance Health, Inc. (NYSE:ELV) was -2.47%, and its shares lost 0.96% of their value over the last 52 weeks. Elevance Health, Inc. (NYSE:ELV) has a market capitalization of $110.891 billion.

Sequoia Fund made the following comment about Elevance Health, Inc. (NYSE:ELV) in its Q4 2022 investor letter:

"Elevance Health, Inc. (NYSE:ELV)'s stock was Sequoia's best performing stock this year, for all the same reasons that United's stock performed well. For full-year 2022, Elevance's revenues and EPS are expected to be up approximately 14% and 12%, respectively. Versus 2019, the company's revenues and EPS are expected to have compounded at annual rates of 14% and 15%, respectively.

Elevance (renamed from Anthem in 2022) is, like United, primarily a managed care company. In terms of revenues and profits, it is big, but not quite as big as United. Further, it is less scaled and less diversified than United in non-insurance business lines. However, Elevance has its own strengths. It is the largest operator of for-profit Blue Cross Blue Shield plans in the country. Built up over the course of decades, these plans have unrivaled brand recognition as well as a network of provider relationships that is unique in terms of market coverage and negotiated rates.

Elevance has long been an advantaged business, but it has not always been particularly well run. In 2017, Gail Boudreaux, formerly a senior executive at United, took over the reins. She is experienced and results-oriented. We believe Boudreaux can help Elevance make more of the enviable position it has long enjoyed…” (Click here to read the full text)

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Elevance Health, Inc. (NYSE:ELV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held Elevance Health, Inc. (NYSE:ELV) at the end of the fourth quarter which was 71 in the previous quarter.

We discussed Elevance Health, Inc. (NYSE:ELV) in another article and shared the list of biggest health insurance companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.


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Disclosure: None. This article is originally published at Insider Monkey.