Sellers rushed to exit their stock position in Elevance Health (ELV) yesterday. ELV stock dropped by 10.59% and may trade lower today.
The company reported a non-GAAP EPS of $8.37 in Q3, missing analyst expectations. Revenue increased by 5.2% Y/Y to $44.7 billion. The company’s disappointing quarterly is similar to that of Humana (HUM). Although UnitedHealth (UNH) reiterated its earnings outlook of $27.50 to $27.74, the stock still fell. UNH already accounted for cyberattack-related costs.
When the selling pressure declines, consider ELV stock. Similarly, Molina Healthcare (MOH) will trade at 52-week lows next. The stock fell in sympathy to Elevance Health’s profit warning.
In the REIT segment, Crown Castle (CCI) is a compelling income investment. In addition to a dividend that yields 5.41%, investors liked the Q3 results. The company is not likely planning to sell its fiber and small cell business at a discount. This is good news for investors who thought the firm would shed assets at weak prices.
In the electric vehicle sector, Lucid Motors (LCID) is a high-risk speculation. Traders should avoid the stock after the firm announced a 262.44 million stock sale. Despite plenty of funding from Saudi Arabian investors, Lucid still needs more capital. With profitability absent, as it sells more luxury EVs, short sellers will increase their bet against the firm.
