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Is Anthem (ANTM) Stock Undervalued Right Now?

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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.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now 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 14.46, which compares to its industry's average of 18.19. Over the last 12 months, ANTM's Forward P/E has been as high as 15.35 and as low as 9.96, with a median of 12.73.

ANTM is also sporting a PEG ratio of 1.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ANTM's PEG compares to its industry's average PEG of 1.40. Over the past 52 weeks, ANTM's PEG has been as high as 1.21 and as low as 0.68, with a median of 0.94.

Investors should also recognize that ANTM has a P/B ratio of 2.75. 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. This stock's P/B looks solid versus its industry's average P/B of 4.12. Over the past year, ANTM's P/B has been as high as 2.90 and as low as 1.79, with a median of 2.37.

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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