With a market cap of $102.5 billion, Elevance Health, Inc. (ELV) is a health benefits company offering a wide range of medical, pharmacy, and healthcare services across its four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It provides health plans, specialty insurance, pharmacy solutions, and healthcare management services under brands such as Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon.

The Indianapolis, Indiana-based company is expected to release its fiscal Q1 2025 earnings results before the market opens on Tuesday, Apr. 22. Ahead of this event, analysts expect ELV to report a profit of $10.97 per share, up 3.1% from $10.64 per share in the prior year's quarter. It has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on another occasion. In Q4 2024, Elevance Health exceeded the consensus EPS estimate by 1.1%.

For fiscal 2025, analysts forecast ELV to post EPS of $34.17, reflecting a 3.4% increase from $33.04 in fiscal 2024. Looking ahead, EPS is projected to grow 14.2% year-over-year to $39.02 in fiscal 2026.

ELV has underperformed the broader markets over the past 52 weeks, with shares down 8.1%, compared to the S&P 500 Index's ($SPX) 1.9% gain and the Health Care Select Sector SPDR Fund's (XLV) marginal dip over the same period. 

Despite reporting better-than-expected Q4 2024 adjusted EPS of $3.84 and operating revenues of around $45 billion on Jan. 23, shares of ELV fell marginally the next day. Adjusted EPS fell 31.7% year-over-year, and the Health Benefits segment saw a 75% plunge in operating gain, with operating margin shrinking by 150 basis points. Medical membership declined 2% to 45.7 million, missing estimates, largely due to Medicaid disenrollment. Rising total expenses and a drop in net investment income added further strain to the bottom line. 

Moreover, management projected weaker margins for both the Health Benefits and Carelon Services segments in fiscal 2025, tempering investor sentiment.

Analysts' consensus rating on ELV stock is bullish, with a "Strong Buy" rating overall. Out of 20 analysts covering the stock, opinions include 15 "Strong Buys,” one "Moderate Buy," and four "Holds.” The average analyst price target for ELV is $491.37, suggesting a potential upside of 10.8% from current levels.