Why Did Elevance Health Plunge 5.22% on Earnings Downgrade?

On May 13, 2025, Elevance Health's stock experienced a 5.22% drop in pre-market trading.

Analysts have revised their expectations for Elevance Health's second-quarter earnings, with K. Dey from Zacks Research now projecting earnings per share of $9.36, down from the previous estimate of $9.85. This adjustment reflects a more cautious outlook on the company's financial performance for the upcoming quarter.

Elevance Health, Inc. is currently rated as a Zacks Rank 3, indicating an expectation of an inline return from its shares. This rating suggests that the stock is neither significantly overvalued nor undervalued, and investors should expect performance in line with the broader market.

Elevance Health remains a leading health insurer in the US, providing medical benefits to 46 million members as of December 2024. The company's unique position as the largest single provider of Blue Cross Blue Shield branded coverage, operating in 14 states, sets it apart from its competitors. Through strategic acquisitions, such as the Amerigroup deal in 2012 and MMM in 2021, Elevance has expanded its reach beyond those states, offering government-sponsored programs like Medicaid and Medicare Advantage plans. Additionally, the company is emerging as a player in pharmacy benefit management and other healthcare services.