Elevance Health has outperformed the S&P 500 by 6.8% over the past six months, with shares up 13.5% to $395.55. The company benefits from significant scale, generating $198.3 billion in revenue over the last 12 months, which provides negotiating leverage with suppliers in a low-margin industry. Its five-year average return on invested capital of 26.5% ranks among the best in healthcare, reflecting efficient capital allocation. However, total customers fell to 45.42 million in the latest quarter, with an average annual decline of 1.1% over the past two years, signaling potential competitive pressures or market saturation. The stock trades at 14.8 times forward earnings.
Elevance Health IncScale and ROIC are strengths, but customer declines raise caution; stock trades at 14.8x forward earnings.