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Anthem, Inc.

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Anthem’s diverse product portfolio, divestitures, prudent capital management, modest cash position, strategic acquisitions and ACO arrangements position it for long-term growth. The company's earnings per share of $1.76 surpassed the Zacks Consensus Estimate by 10.7% and grew 54.4% year over year, primarily due to higher revenues.  This is further evidenced from the stock’s performance. Year to date, Anthem’s shares gained 16% compared with the Zacks categorized HMO industry’s 8% increase. Its proposed merger with Cigna has been blocked and the company is likely to look for other options to deploy the cash in hand. It also owes $1.85 billion in severance charges to Cigna. High debt levels and a weak public exchange business pose risks on Anthem's future earnings.

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