Back to top

Is Anthem (ANTM) a Great Value Stock Right Now?

Read MoreHide Full Article

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Anthem (ANTM - Free Report) is a stock many investors are watching right now. ANTM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 16.35, which compares to its industry's average of 18.64. Over the past 52 weeks, ANTM's Forward P/E has been as high as 19.22 and as low as 13.85, with a median of 15.29.

We also note that ANTM holds a PEG ratio of 1.38. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ANTM's PEG compares to its industry's average PEG of 1.45. Within the past year, ANTM's PEG has been as high as 1.80 and as low as 1.19, with a median of 1.34.

We should also highlight that ANTM has a P/B ratio of 2.45. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.05. Over the past 12 months, ANTM's P/B has been as high as 2.50 and as low as 1.80, with a median of 2.22.

Finally, investors will want to recognize that ANTM has a P/CF ratio of 13.39. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.55. ANTM's P/CF has been as high as 16.19 and as low as 11.38, with a median of 12.97, all within the past year.

These are only a few of the key metrics included in Anthem's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ANTM looks like an impressive value stock at the moment.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Anthem, Inc. (ANTM) - free report >>

More from Zacks Tale of the Tape

You May Like