First Eagle Global Equity ETF on Elevance Health, Inc.
Thesis
Elevance Health rallied as margins recovered after a prolonged decline. First Eagle attributes the improvement to declining medical costs, stronger pricing and increased utilization accompanied by higher premiums. The thesis rests on the return of margin expansion after prior pressure. The quarter's improvement provides evidence that the operating backdrop had begun to normalize.
“Margins expanded after a protracted decline due to declining medical costs, stronger pricing and increased utilization with higher premiums.”