Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Anthem . ANTM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.60. This compares to its industry's average Forward P/E of 16.47. Over the past 52 weeks, ANTM's Forward P/E has been as high as 13.39 and as low as 7.54, with a median of 11.69.
Investors should also note that ANTM holds a PEG ratio of 0.90. 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 1.23 right now. ANTM's PEG has been as high as 0.96 and as low as 0.49, with a median of 0.80, all within the past year.
Another notable valuation metric for ANTM is its P/B ratio of 2.36. Investors use the P/B ratio to look at a stock's market value versus 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 12 months, ANTM's P/B has been as high as 2.48 and as low as 1.40, with a median of 2.14.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ANTM has a P/S ratio of 0.69. This compares to its industry's average P/S of 0.71.
Finally, our model also underscores that ANTM has a P/CF ratio of 13.52. 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. ANTM's P/CF has been as high as 14.20 and as low as 7.59, with a median of 11.78, 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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Is Anthem (ANTM) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Anthem . ANTM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 12.60. This compares to its industry's average Forward P/E of 16.47. Over the past 52 weeks, ANTM's Forward P/E has been as high as 13.39 and as low as 7.54, with a median of 11.69.
Investors should also note that ANTM holds a PEG ratio of 0.90. 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 1.23 right now. ANTM's PEG has been as high as 0.96 and as low as 0.49, with a median of 0.80, all within the past year.
Another notable valuation metric for ANTM is its P/B ratio of 2.36. Investors use the P/B ratio to look at a stock's market value versus 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 12 months, ANTM's P/B has been as high as 2.48 and as low as 1.40, with a median of 2.14.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ANTM has a P/S ratio of 0.69. This compares to its industry's average P/S of 0.71.
Finally, our model also underscores that ANTM has a P/CF ratio of 13.52. 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. ANTM's P/CF has been as high as 14.20 and as low as 7.59, with a median of 11.78, 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.