The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 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 is trading with a P/E ratio of 14.28, which compares to its industry's average of 18.48. Over the past year, ANTM's Forward P/E has been as high as 15.35 and as low as 9.96, with a median of 12.35.
We also note that ANTM holds a PEG ratio of 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ANTM's PEG compares to its industry's average PEG of 1.43. Within the past year, ANTM's PEG has been as high as 1.21 and as low as 0.68, with a median of 0.90.
Another valuation metric that we should highlight is ANTM's P/B ratio of 2.75. 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. This stock's P/B looks attractive against its industry's average P/B of 4.01. Over the past 12 months, ANTM's P/B has been as high as 2.90 and as low as 1.79, with a median of 2.29.
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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Is Anthem (ANTM) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 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 is trading with a P/E ratio of 14.28, which compares to its industry's average of 18.48. Over the past year, ANTM's Forward P/E has been as high as 15.35 and as low as 9.96, with a median of 12.35.
We also note that ANTM holds a PEG ratio of 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ANTM's PEG compares to its industry's average PEG of 1.43. Within the past year, ANTM's PEG has been as high as 1.21 and as low as 0.68, with a median of 0.90.
Another valuation metric that we should highlight is ANTM's P/B ratio of 2.75. 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. This stock's P/B looks attractive against its industry's average P/B of 4.01. Over the past 12 months, ANTM's P/B has been as high as 2.90 and as low as 1.79, with a median of 2.29.
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.