Is Elevance (ELV) an Attractively Valued Stock?

Madison Investments, an investment advisor, released its “Madison Large Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund (Class I) decreased 0.93% compared to the 4.27% decline for the S&P 500 index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Madison Large Cap Fund highlighted stocks such as Elevance Health, Inc. (NYSE:ELV). Elevance Health, Inc. (NYSE:ELV) is a health benefits company. The one-month return of Elevance Health, Inc. (NYSE:ELV) was -3.05%, and its shares lost 21.03% of their value over the last 52 weeks. On April 25, 2025, Elevance Health, Inc. (NYSE:ELV) stock closed at $421.68 per share with a market capitalization of $96.878 billion.

Madison Large Cap Fund stated the following regarding Elevance Health, Inc. (NYSE:ELV) in its Q1 2025 investor letter:

"Elevance Health, Inc.'s (NYSE:ELV) profits have been pressured due to higher acuity in its Medicaid business. However, we believe the shares were attractively valued due to our expectation that margins should normalize as Elevance reprices its risk pools."

Elevance Health, Inc. (NYSE:ELV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held Elevance Health, Inc. (NYSE:ELV) at the end of the fourth quarter compared to 67 in the third quarter. While we acknowledge the potential of Elevance Health, Inc. (NYSE:ELV) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered Elevance Health, Inc. (NYSE:ELV) and shared the list of best stocks that will always grow. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.