Shares of highly rated managed health care provider Elevance Health are rising amid double-digit earnings gains. On Thursday, the Relative Strength (RS) Rating for Elevance stock jumped into a new percentile, with a rise from 78 to 81.
Elevance Stock Bumped Up Into Higher Group
The upgrade of the RS Rating for Elevance stock to 81 means it topped 81% of all stocks for price performance over the past year. It's a significant upgrade because market research shows that the biggest stock winners typically have an 80 or higher RS Rating as they begin their price moves.
In addition, though perhaps not as well-known as industry giants UnitedHealth and Cigna, Elevance is making strides in growing its offerings and its customer base.
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Quarterly EPS growth ranged from 12% to 21% over the past year. Indianapolis-based Elevance posted 12% EPS growth last quarter to a hefty $10.64 per shares. However, sales edged up just 1% to $42.6 billion, down from 7% growth the prior quarter. Look for a return to stronger sales this quarter.
The company says on its website that it will announce second quarter earnings results the morning of July 17.
Meanwhile, the results will come amid a period of aggressive expansion for the health care manager. CEO Gail Boudreaux said in the company's Q1 report in April, "Given the solid start to the year, we have increased our outlook for full year earnings."
Additionally, Boudroux noted that, "We are making significant progress expanding Carelon's (an umbrella Elevance brand for a broad portfolio of services) capabilities," and "delivering results for all stakeholders."
Announces Partnership With Private Equity Firm
Further, the company at that time also announced a partnership with private equity firm Clayton, Dubilier & Rice "to accelerate innovation in care delivery, enhance healthcare experiences, and improve health outcomes," Boudreaux said.
Among its other key ratings Elevance stock boasts a 92 EPS Rating out of 99. It has an 86 Composite Rating and a B+ Accumulation/Distribution Rating. IBD's A/D Rating on a A+ to E scale shows the amount of buying by institutional investors like mutual funds and ETFs. The B+ rating show fairly heavy buying of Elevance stock.
Elevance stock holds the No. 2 rank among its peers in the 12-stock Medical-Managed Care industry group. Cigna is the top-ranked stock in the group.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
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