We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Anthem (ANTM) Pull a Surprise this Earnings Season?
Read MoreHide Full Article
Anthem Inc. is set to report second-quarter 2016 results before the market opens on Jul 27, 2016. Last quarter, the company had posted a positive earnings surprise of 3.59%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
Operating revenues are expected to have improved in the second quarter on the back of strong enrollment in government business and Medicaid.
The total membership, both fully insured and self funded, are likely to have increased due to expansion of Affordable Care Act (ACA) and the streak of deal wins.
Prudent pricing for the exchange product offerings are expected to have contributed to better public exchange business in the to-be-reported quarter.
However, a still soft interest rate environment is likely to keep net investment income under pressure. Also, benefit expense ratio is expected to have increased owing on margin expansion.
With respect to the surprise trend, the company delivered positivesurprises in three of the last four quarters, with an average beat of 6.65%.
Our proven model does not conclusively show that Anthem is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Anthem has -0.93% Earnings ESP. This is because the Most Accurate estimate stands at $3.21, while the Zacks Consensus Estimate is pegged at $3.24.
Zacks Rank: Anthem carries a Zacks Rank #3 (Hold).
Though the company carries a favorable Zacks Rank, its negative Earnings ESP makes surprise prediction difficult.
Stocks to Consider
Here are some companies from the Medical sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
Hologic Inc. (HOLX - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #2. The company is also expected to report second-quarter earnings results on Jul 27.
Centene Corp.(CNC - Free Report) has an Earnings ESP of +1.85% and a Zacks Rank #2. The company is scheduled to report second-quarter earnings results on Jul 26.
Innoviva Inc (INVA - Free Report) has an Earnings ESP of +25% and a Zacks Rank #1. The company is slated to report second-quarter earnings results on Jul 28.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Can Anthem (ANTM) Pull a Surprise this Earnings Season?
Anthem Inc. is set to report second-quarter 2016 results before the market opens on Jul 27, 2016. Last quarter, the company had posted a positive earnings surprise of 3.59%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
Operating revenues are expected to have improved in the second quarter on the back of strong enrollment in government business and Medicaid.
The total membership, both fully insured and self funded, are likely to have increased due to expansion of Affordable Care Act (ACA) and the streak of deal wins.
Prudent pricing for the exchange product offerings are expected to have contributed to better public exchange business in the to-be-reported quarter.
However, a still soft interest rate environment is likely to keep net investment income under pressure. Also, benefit expense ratio is expected to have increased owing on margin expansion.
With respect to the surprise trend, the company delivered positivesurprises in three of the last four quarters, with an average beat of 6.65%.
ANTHEM INC Price and EPS Surprise
ANTHEM INC Price and EPS Surprise | ANTHEM INC Quote
Earnings Whispers
Our proven model does not conclusively show that Anthem is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Anthem has -0.93% Earnings ESP. This is because the Most Accurate estimate stands at $3.21, while the Zacks Consensus Estimate is pegged at $3.24.
Zacks Rank: Anthem carries a Zacks Rank #3 (Hold).
Though the company carries a favorable Zacks Rank, its negative Earnings ESP makes surprise prediction difficult.
Stocks to Consider
Here are some companies from the Medical sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
Hologic Inc. (HOLX - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #2. The company is also expected to report second-quarter earnings results on Jul 27.
Centene Corp.(CNC - Free Report) has an Earnings ESP of +1.85% and a Zacks Rank #2. The company is scheduled to report second-quarter earnings results on Jul 26.
Innoviva Inc (INVA - Free Report) has an Earnings ESP of +25% and a Zacks Rank #1. The company is slated to report second-quarter earnings results on Jul 28.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report