While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Anthem . ANTM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.01, while its industry has an average P/E of 14.76. Over the last 12 months, ANTM's Forward P/E has been as high as 15.54 and as low as 7.54, with a median of 11.71.
Investors should also note that ANTM holds a PEG ratio of 0.82. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ANTM's industry currently sports an average PEG of 1.10. ANTM's PEG has been as high as 1.11 and as low as 0.49, with a median of 0.80, all within the past year.
Investors should also recognize that ANTM has a P/B ratio of 2.19. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. ANTM's current P/B looks attractive when compared to its industry's average P/B of 3.46. Over the past year, ANTM's P/B has been as high as 2.48 and as low as 1.40, with a median of 2.14.
Finally, our model also underscores that ANTM has a P/CF ratio of 10.91. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.45. Over the past year, ANTM's P/CF has been as high as 14.56 and as low as 7.59, with a median of 11.59.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Anthem is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ANTM feels like a great value stock at the moment.
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Should Value Investors Buy Anthem (ANTM) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Anthem . ANTM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.01, while its industry has an average P/E of 14.76. Over the last 12 months, ANTM's Forward P/E has been as high as 15.54 and as low as 7.54, with a median of 11.71.
Investors should also note that ANTM holds a PEG ratio of 0.82. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ANTM's industry currently sports an average PEG of 1.10. ANTM's PEG has been as high as 1.11 and as low as 0.49, with a median of 0.80, all within the past year.
Investors should also recognize that ANTM has a P/B ratio of 2.19. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. ANTM's current P/B looks attractive when compared to its industry's average P/B of 3.46. Over the past year, ANTM's P/B has been as high as 2.48 and as low as 1.40, with a median of 2.14.
Finally, our model also underscores that ANTM has a P/CF ratio of 10.91. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.45. Over the past year, ANTM's P/CF has been as high as 14.56 and as low as 7.59, with a median of 11.59.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Anthem is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ANTM feels like a great value stock at the moment.