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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Anthem . ANTM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.01, which compares to its industry's average of 14.52. Over the past year, ANTM's Forward P/E has been as high as 17.02 and as low as 11.69, with a median of 15.40.
ANTM is also sporting a PEG ratio of 0.88. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ANTM's industry has an average PEG of 1.09 right now. Over the past 52 weeks, ANTM's PEG has been as high as 1.42 and as low as 0.80, with a median of 1.26.
We should also highlight that ANTM has a P/B ratio of 2.28. 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 3.29. Over the past 12 months, ANTM's P/B has been as high as 2.88 and as low as 2.03, with a median of 2.39.
Finally, investors will want to recognize that ANTM has a P/CF ratio of 13.59. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.70. ANTM's P/CF has been as high as 17.18 and as low as 11.44, with a median of 13.09, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Anthem is likely undervalued currently. And when considering the strength of its earnings outlook, ANTM sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Anthem (ANTM) Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Anthem . ANTM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.01, which compares to its industry's average of 14.52. Over the past year, ANTM's Forward P/E has been as high as 17.02 and as low as 11.69, with a median of 15.40.
ANTM is also sporting a PEG ratio of 0.88. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ANTM's industry has an average PEG of 1.09 right now. Over the past 52 weeks, ANTM's PEG has been as high as 1.42 and as low as 0.80, with a median of 1.26.
We should also highlight that ANTM has a P/B ratio of 2.28. 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 3.29. Over the past 12 months, ANTM's P/B has been as high as 2.88 and as low as 2.03, with a median of 2.39.
Finally, investors will want to recognize that ANTM has a P/CF ratio of 13.59. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.70. ANTM's P/CF has been as high as 17.18 and as low as 11.44, with a median of 13.09, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Anthem is likely undervalued currently. And when considering the strength of its earnings outlook, ANTM sticks out at as one of the market's strongest value stocks.