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Why Holding Anthem (ANTM) in Your Portfolio is a Prudent Move
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Anthem, Inc. has been in investors' good books on the back of a healthy revenue stream, strong operational performance, improving membership and strategic measures.
ANTM proved itself time and again with its unique range of products that goes beyond traditional insurance. ANTM penetrated pharmacy, behavioral, clinical and various other areas of healthcare.
ANTM ended the year with 45.4 million members with three-fourth gains through organic growth.
The leading health insurer has a market cap of $114.56 billion. Anthem owns Blue Cross Blue Shield plans in 14 states. Over the past seven days, ANTM has witnessed its 2022 earnings estimate move 0.04% north.
Anthem is well-poised for progress, evident from its VGM Score of A. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors.
Now delve deeper to see what makes this currently Zacks Rank #3 (Hold) player an investor favorite stock.
Anthem is a dynamic stock and leaves no stone unturned to boost its portfolio. Its robust Medicare and Medicaid businesses along with strategic inorganic growth initiatives poise it well for growth.
Acquisitions have proved to be a key driver for ANTM over time.
The buyouts of Missouri and Nebraska Medicaid plans of WellCare Health in January 2020 added around 300,000 Medicaid members under its coverage. Anthem’s buyout of Beacon Health, the largest independently held behavioral health organization in the country, should strengthen its position in the space.
Last June, Anthem completed the purchase of Puerto Rico-based subsidiaries, including MMM Holdings from InnovaCare Health.
Anthem is continuously taking several measures to enhance its Medicare and Medicaid businesses for providing an affordable, value-based medical care to the communities it serves.
ANTM’s top-line improvement is impressive, which has been growing for a while on premium rate increase and higher membership. In 2021, revenues of $136.9 billion improved 13.4% year over year. Further, the metric is expected to rise to $152 billion in 2022. The top-line improvement is likely to continue owing to membership rise and contract wins.
Owing to a strong cash position, the health insurance player deployed capital in form of share buybacks and dividend payouts. During the fourth quarter of 2021, Anthem bought back shares worth $522 million. As of Dec 31, 2021, ANTM had $4.2 billion remaining under its share buyback authorization. Also, ANTM recently increased quarterly dividends 13%.
Anthem expects adjusted net income for 2022 to be more than $28.25 per share. Total medical enrolment is expected to grow 226,000-826,000 from the 2021 level. Operating revenues for the year are expected to be around $152 billion, indicating growth from $136.9 billion in 2021. A robust guidance must instill investors' confidence in the stock.
Rising number of members also expanded its portfolio and established its dominance in the industry.
The consensus mark for 2022 earnings stands at $28.44, indicating an upside of 9.5% from the year-ago reported figure.
Some better-ranked stocks in the medical space are Mednax, Inc. (MD - Free Report) , The Ensign Group, Inc. (ENSG - Free Report) and AmerisourceBergen Corporation . While Mednax sports a Zacks Rank #1 (Strong Buy), Ensign Group and AmerisourceBergen carry a Zacks Rank #2 (Buy) at present.
Mednax’s earnings surpassed estimates in each of the last four quarters, the average being 27.99%. The Zacks Consensus Estimate for MD’s 2022 earnings suggests an improvement of 12.9% from the year-ago reported figure, while the same for revenues suggests growth of 4.2%. The consensus mark for Mednax’s 2022 earnings has moved 7% north in the past 30 days.
The bottom line of Ensign Group outpaced estimates in each of the last four quarters, the average being 1.72%. The Zacks Consensus Estimate for ENSG’s 2022 earnings suggests an improvement of 11.8% from the year-ago reported figure, while the same for revenues suggests growth of 12.1%. The consensus mark for 2022 earnings has moved 3.6% north in the past 60 days. Ensign Group has a VGM Score of A.
AmerisourceBergen delivered a trailing four-quarter earnings surprise of 2.29%, on average. The Zacks Consensus Estimate for ABC’s 2022 earnings indicates a rise of 16.5% from the year-ago reported figure. The consensus mark has moved 1% north in the past 60 days. ABC has a VGM Score of A.
Shares of Mednax and Ensign Group have lost 15.7%, and 2.7%, respectively, in a yea, while AmerisourceBergen has gained 32.8%.
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Why Holding Anthem (ANTM) in Your Portfolio is a Prudent Move
Anthem, Inc. has been in investors' good books on the back of a healthy revenue stream, strong operational performance, improving membership and strategic measures.
ANTM proved itself time and again with its unique range of products that goes beyond traditional insurance. ANTM penetrated pharmacy, behavioral, clinical and various other areas of healthcare.
ANTM ended the year with 45.4 million members with three-fourth gains through organic growth.
The leading health insurer has a market cap of $114.56 billion. Anthem owns Blue Cross Blue Shield plans in 14 states. Over the past seven days, ANTM has witnessed its 2022 earnings estimate move 0.04% north.
Anthem is well-poised for progress, evident from its VGM Score of A. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors.
Now delve deeper to see what makes this currently Zacks Rank #3 (Hold) player an investor favorite stock.
Anthem is a dynamic stock and leaves no stone unturned to boost its portfolio. Its robust Medicare and Medicaid businesses along with strategic inorganic growth initiatives poise it well for growth.
Acquisitions have proved to be a key driver for ANTM over time.
The buyouts of Missouri and Nebraska Medicaid plans of WellCare Health in January 2020 added around 300,000 Medicaid members under its coverage. Anthem’s buyout of Beacon Health, the largest independently held behavioral health organization in the country, should strengthen its position in the space.
Last June, Anthem completed the purchase of Puerto Rico-based subsidiaries, including MMM Holdings from InnovaCare Health.
Anthem is continuously taking several measures to enhance its Medicare and Medicaid businesses for providing an affordable, value-based medical care to the communities it serves.
ANTM’s top-line improvement is impressive, which has been growing for a while on premium rate increase and higher membership. In 2021, revenues of $136.9 billion improved 13.4% year over year. Further, the metric is expected to rise to $152 billion in 2022. The top-line improvement is likely to continue owing to membership rise and contract wins.
Owing to a strong cash position, the health insurance player deployed capital in form of share buybacks and dividend payouts. During the fourth quarter of 2021, Anthem bought back shares worth $522 million. As of Dec 31, 2021, ANTM had $4.2 billion remaining under its share buyback authorization. Also, ANTM recently increased quarterly dividends 13%.
Anthem expects adjusted net income for 2022 to be more than $28.25 per share. Total medical enrolment is expected to grow 226,000-826,000 from the 2021 level. Operating revenues for the year are expected to be around $152 billion, indicating growth from $136.9 billion in 2021. A robust guidance must instill investors' confidence in the stock.
Rising number of members also expanded its portfolio and established its dominance in the industry.
The consensus mark for 2022 earnings stands at $28.44, indicating an upside of 9.5% from the year-ago reported figure.
Shares of Anthem have gained 36.8%, outperforming its industry’s growth of 35.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the medical space are Mednax, Inc. (MD - Free Report) , The Ensign Group, Inc. (ENSG - Free Report) and AmerisourceBergen Corporation . While Mednax sports a Zacks Rank #1 (Strong Buy), Ensign Group and AmerisourceBergen carry a Zacks Rank #2 (Buy) at present.
Mednax’s earnings surpassed estimates in each of the last four quarters, the average being 27.99%. The Zacks Consensus Estimate for MD’s 2022 earnings suggests an improvement of 12.9% from the year-ago reported figure, while the same for revenues suggests growth of 4.2%. The consensus mark for Mednax’s 2022 earnings has moved 7% north in the past 30 days.
The bottom line of Ensign Group outpaced estimates in each of the last four quarters, the average being 1.72%. The Zacks Consensus Estimate for ENSG’s 2022 earnings suggests an improvement of 11.8% from the year-ago reported figure, while the same for revenues suggests growth of 12.1%. The consensus mark for 2022 earnings has moved 3.6% north in the past 60 days. Ensign Group has a VGM Score of A.
AmerisourceBergen delivered a trailing four-quarter earnings surprise of 2.29%, on average. The Zacks Consensus Estimate for ABC’s 2022 earnings indicates a rise of 16.5% from the year-ago reported figure. The consensus mark has moved 1% north in the past 60 days. ABC has a VGM Score of A.
Shares of Mednax and Ensign Group have lost 15.7%, and 2.7%, respectively, in a yea, while AmerisourceBergen has gained 32.8%.