Elevance Health (ELV) shares rallied 5.4% in the last trading session to close at $452.69. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8% gain over the past four weeks.

Elevance Health’s share price benefited from investors seeking stability amid heightened market volatility. A sharp sell-off in tech and industrial stocks, triggered by new U.S. trade tariffs, prompted market participants to shift toward defensive sectors, such as healthcare. With its strong position in managed care and a stable revenue stream from government-backed programs, Elevance Health became a preferred choice for risk-averse investors.

In addition to the sector-wide boost, Elevance Health’s rally reflected growing investor confidence in its long-term strategy. Improving margins and operational efficiencies in Medicaid and Medicare Advantage plans bodes well. The company’s ongoing efforts to optimize costs and enhance digital healthcare services have strengthened its financial position, reinforcing its appeal to investors.

This health insurer is expected to post quarterly earnings of $10.92 per share in its upcoming report, which represents a year-over-year change of +2.6%. Revenues are expected to be $45.94 billion, up 8.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Elevance Health, the consensus EPS estimate for the quarter has been revised 1.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ELV going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Elevance Health is part of the Zacks Medical Services industry. CareDx (CDNA), another stock in the same industry, closed the last trading session 5.6% lower at $17.37. CDNA has returned -9.9% in the past month.

For CareDx , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.06. This represents a change of +300% from what the company reported a year ago. CareDx currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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