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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Anthem 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 has a Forward P/E ratio of 15.82. This compares to its industry's average Forward P/E of 17.39. Over the last 12 months, ANTM's Forward P/E has been as high as 19.22 and as low as 13.85, with a median of 15.80.
We also note that ANTM holds a PEG ratio of 1.34. 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 industry currently sports an average PEG of 1.34. 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.
Another valuation metric that we should highlight is ANTM's P/B ratio of 2.41. The P/B ratio pits a stock's market value against 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 3.87. Over the past 12 months, ANTM's P/B has been as high as 2.54 and as low as 2.04, with a median of 2.25.
Finally, we should also recognize that ANTM has a P/CF ratio of 13.14. 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. ANTM's P/CF compares to its industry's average P/CF of 15.06. Over the past year, ANTM's P/CF has been as high as 16.19 and as low as 11.38, with a median of 12.99.
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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Should Value Investors Buy Anthem (ANTM) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Anthem 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 has a Forward P/E ratio of 15.82. This compares to its industry's average Forward P/E of 17.39. Over the last 12 months, ANTM's Forward P/E has been as high as 19.22 and as low as 13.85, with a median of 15.80.
We also note that ANTM holds a PEG ratio of 1.34. 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 industry currently sports an average PEG of 1.34. 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.
Another valuation metric that we should highlight is ANTM's P/B ratio of 2.41. The P/B ratio pits a stock's market value against 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 3.87. Over the past 12 months, ANTM's P/B has been as high as 2.54 and as low as 2.04, with a median of 2.25.
Finally, we should also recognize that ANTM has a P/CF ratio of 13.14. 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. ANTM's P/CF compares to its industry's average P/CF of 15.06. Over the past year, ANTM's P/CF has been as high as 16.19 and as low as 11.38, with a median of 12.99.
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.