Elevance Health Delivers Another Strong Quarter; Shares Fairly Valued

Elevance Health delivered a strong third quarter and raised its 2022 outlook mildly for the third time in as many quarters. Considering these strong trends and recently generated cash flows, we are raising our fair value estimate by a mid-single-digit percentage to $478 per share. Our narrow moat rating appears intact, too, and is primarily based on the company's local scale leadership that helps it offer lower premiums than most health insurers. For example, Elevance continues to lead the U.S. medical membership landscape with 47 million members at the end of September, higher than even UnitedHealth's 46 million U.S. members, despite the latter's broader national network.