Anthem Inc is one of the largest publicly traded managed care organizations in terms of membership. Strategic acquisitions, national accounts in the commercial segment and the Medicaid expansion in the government segment have significantly boosted the company’s membership base.
Anthem’s revenues have also grown on the back of net investment income that started increasing since 2016 on the back of interest rate hikes.
The Indianapolis, IN-based company’s capital management, backed by solid cash position, also impresses. Sufficient generation of cash flows have enabled the company to enhance shareholders’ value through several capital deployment initiatives like share repurchases, dividend payouts etc.
The company maintains a consistent record of earnings outperformance. In three of the last four quarters, Anthem’s bottom line surpassed expectations with an average beat of 8.6%. Following strong second-quarter 2017 results, the company raised its earnings and revenue guidance for 2017 that further boosts shareholders' confidence in the stock.
However, loss incurred from public exchange business continues to hurt the company’s bottom line and top line, as evident from a significant decline in enrollment in this business since 2016. Although management has been taking steps to ensure both a stable and sustainable returns from individual market, we remain cautious. Along with other health insurers like Humana Inc (HUM - Free Report) , Aetna Inc and UnitedHealth Group, Inc (UNH - Free Report) , Anthem is planning to scale back its participation on this loss-making business for 2018.
Moreover, the company’s rising level of debt not only increases financial risks but also raises interest expenses, which weighs on margins.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Anthem Inc is one of the largest publicly traded managed care organizations in terms of membership. Strategic acquisitions, national accounts in the commercial segment and the Medicaid expansion in the government segment have significantly boosted the company’s membership base.
Anthem’s revenues have also grown on the back of net investment income that started increasing since 2016 on the back of interest rate hikes.
The Indianapolis, IN-based company’s capital management, backed by solid cash position, also impresses. Sufficient generation of cash flows have enabled the company to enhance shareholders’ value through several capital deployment initiatives like share repurchases, dividend payouts etc.
The company maintains a consistent record of earnings outperformance. In three of the last four quarters, Anthem’s bottom line surpassed expectations with an average beat of 8.6%. Following strong second-quarter 2017 results, the company raised its earnings and revenue guidance for 2017 that further boosts shareholders' confidence in the stock.
However, loss incurred from public exchange business continues to hurt the company’s bottom line and top line, as evident from a significant decline in enrollment in this business since 2016. Although management has been taking steps to ensure both a stable and sustainable returns from individual market, we remain cautious. Along with other health insurers like Humana Inc (HUM - Free Report) , Aetna Inc and UnitedHealth Group, Inc (UNH - Free Report) , Anthem is planning to scale back its participation on this loss-making business for 2018.
Moreover, the company’s rising level of debt not only increases financial risks but also raises interest expenses, which weighs on margins.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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