Anthem Stock Forecast, Price & News: Invest or Not?
Elevance Health (formerly Anthem Inc.) is a health insurance company that operates in the United States. Does it make sense to invest in Elevance Health? Should you pay more attention to Anthem stock? Let’s find out!
As you already know, Elevance Health is a health insurance company. Its history dates back to the 1940s. The company was founded in Indianapolis, Indiana, under the name “Mutual Hospital Insurance Inc. and Mutual Medical Insurance Inc.”
At first, it wasn’t a for-profit organization. The goal of this organization was to provide health insurance to members of the community who couldn’t afford to pay for medical care.
In the 1970s, the two firms, Blue Cross of Indiana and Blue Shield of Indiana, entered into a joint operating agreement.
What’s interesting, the company expanded rapidly over the next several decades from an unknown company to one of the largest health insurance providers in the United States.
The company changed its name to “Anthem Insurance Companies, Inc” in the 1980s and
and became a for-profit corporation. The company continued to grow through a series of mergers and acquisitions.
In 2002, the company bought another large health insurance provider, Trigon Healthcare, for more than $4 billion. Anthem continued to expand operations.
For instance, Anthem acquired WellPoint Health Networks, Inc., a large health insurance provider in California. Interestingly, the combined company changed its name to WellPoint, Inc.
In 2014, the company changed its name back to Anthem, Inc. Several years later; the company announced a change of its corporate name to Elevance Health, Inc.
Elevance Health and its rivals
Elevance Health is one of the largest health insurance providers in the United States. It has tens of millions of members.
The company mentioned above offers a variety of health insurance plans, including individual and group plans, etc.
Should you invest in Anthem stock? Elevance Health, formerly known as Anthem, has to compete with numerous companies.
Unfortunately, It is impossible to discuss all of its rivals. So, let’s focus on several main competitors. One such company is UnitedHealth Group.
It is one of the largest health insurance providers in the United States. It operates in a number of states. UnitedHealth Group offers a wide range of health insurance products and services, including individual and group plans.
Aetna is also one of the main competitors of Elevance Health. It is worth noting that Aetna offers a variety of health insurance plans, including individual and group plans. Aetna also offers dental, vision, and other healthcare-related products and services.
The list of main competitors includes Cigna and Humana.
Cigna operates in several countries, including the United States. It offers various health insurance plans. What about Humana?
It is a health insurance company that focuses on providing Medicare Advantage plans to seniors. Humana also offers a variety of other health insurance products and services, including individual and group plans and Medicaid plans.
We shouldn’t forget about the Blue Cross Blue Shield Association. As a reminder, it is a federation of health insurance companies that operate in several states in the United States.
These are just several examples of Anthem’s competitors in the health insurance industry. Other notable competitors include Kaiser Permanente, Molina Healthcare, and Centene Corporation.
Advantages and disadvantages of Elevance Health
As in the case of all investments, there are potential risks and benefits to investing in Elevance Health (Anthem.)
Let’s first take a look at the advantages.
Elevance Health, formerly known as Anthem, is a well-established company with a long history in the health insurance industry. It has a large customer base, and it is one of the largest health insurance providers in the United States.
What’s important, the demand for health insurance is likely to remain strong, especially as the population ages and requires more medical services.
What about the disadvantages?
As in the case of all insurance companies, Elevance Health is subject to regulatory changes and changes in healthcare policies. This can affect the company’s profitability and growth prospects.
The healthcare industry is constantly evolving, and new technologies and treatment options may disrupt the traditional health insurance model. It is quite hard to compete with numerous companies.
Besides, there is always the risk of unforeseen events, such as a pandemic or a recession, that can negatively impact the company’s financial performance.
It is a good idea to invest in Elevance Health. The company is forecasted to grow earnings and revenue by 11.5% and 7.3% per annum, respectively.
Ultimately, whether or not to invest in Elevance Health (or any other company) depends on your investment goals, risk tolerance, and overall financial situation. It is always a good idea to do your own research and consult with a financial advisor before making any investment decisions.
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