1 Growth Stock Down 15% to Buy Right Now

Elevance Health Inc. (ELV), previously known as Anthem, has seen its stock price decline by around 15% from its recent highs. Despite this temporary setback, the company's long-term growth prospects remain robust. With a strong balance sheet, solid cash flow generation, and a low-risk business model, Elevance is well-positioned to capitalize on demographic tailwinds, such as an aging population and increased demand for healthcare services. The company's management team has demonstrated a proven track record of navigating industry challenges and driving growth. Although there are potential risks related to Medicare Advantage star ratings, Elevance's diversified business model and focus on value-based care position it for long-term success. With an attractive entry point and undervalued valuation compared to peers like UnitedHealth, Elevance Health is a compelling investment opportunity for those seeking a high-quality compounder with significant upside potential.

Elevance Health's financial performance has remained robust despite the stock price decline. In Q1 2023, the company reported adjusted EPS of $2.54, up 14.4% YoY, and revenue of $35.7 billion, a 12.8% increase. The company's operating margin expanded to 6.7% from 5.9% in Q1 2022. Elevance's strong financial performance, coupled with its low-risk business model and demographic tailwinds, makes it an attractive investment opportunity.

Elevance Health's market share in the Medicare Advantage (MA) market has remained robust, with a 26% share in 2022, up from 20% in 2018. This growth can be attributed to Elevance's successful expansion strategy, which has involved acquiring smaller competitors and expanding its network of providers. Despite recent challenges, such as a slight decline in its star ratings, Elevance's market share has remained resilient, and its competitive position continues to be solid.

Elevance Health's management team has adapted to changes in the market and regulatory environment, focusing on enhancing digital capabilities, improving customer experience, and expanding its provider network. The company's future growth strategies center around leveraging technology to enhance care delivery, expanding its Medicare Advantage offerings, and pursuing strategic partnerships to strengthen its market position.

In conclusion, Elevance Health Inc. represents an attractive investment opportunity, despite its recent stock price decline. The company's strong financial performance, low-risk business model, and favorable market trends make it a compelling choice for investors seeking a high-quality compounder with significant upside potential. As the company continues to navigate industry challenges and capitalize on demographic tailwinds, it is well-positioned for long-term success.