Building wealth in the stock market can be as simple as picking quality businesses in growing industries and holding for the long haul. Decent execution from a business in a promising industry often translates into ever-higher revenue and earnings, which also leads to share price growth over time. With high inflation in healthcare and more people developing chronic medical conditions, demand for health insurance will keep growing. This is why the market research firm Global Market Insights anticipates that the global health insurance industry will expand at 4.6% each year from $2.8 trillion in 2020 to $3.9 trillion by 2027.
The managed care company, Elevance Health (NYSE: ELV), is up 16% year to date. This is a stark contrast compared to the S&P 500 index’s 19% decline so far in 2022. And as impressive as the stock’s performance has been in 2022, it also looks like it will be a winner over the long run. Here’s why. Elevance Health boasts a total customer base of 119 million for its Anthem Blue Cross and Blue Shield and Wellpoint medical insurance plans and its healthcare services called Carelon. Along with a $125 billion market capitalization, this makes the company the second-largest health insurer in the world behind UnitedHealth Group.
