While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Anthem is a stock many investors are watching right now. ANTM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 16.72. This compares to its industry's average Forward P/E of 17.62. Over the last 12 months, ANTM's Forward P/E has been as high as 18.72 and as low as 13.85, with a median of 15.34.
Investors will also notice that ANTM has a PEG ratio of 1.28. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ANTM's industry has an average PEG of 1.30 right now. Within the past year, ANTM's PEG has been as high as 1.75 and as low as 1.08, with a median of 1.30.
Another valuation metric that we should highlight is ANTM's P/B ratio of 2.65. 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 attractive against its industry's average P/B of 3.97. Over the past 12 months, ANTM's P/B has been as high as 2.65 and as low as 2.08, with a median of 2.29.
Finally, we should also recognize that ANTM has a P/CF ratio of 14.03. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ANTM's current P/CF looks attractive when compared to its industry's average P/CF of 15.14. Within the past 12 months, ANTM's P/CF has been as high as 14.30 and as low as 11.38, with a median of 12.66.
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.
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Is Anthem (ANTM) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Anthem is a stock many investors are watching right now. ANTM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 16.72. This compares to its industry's average Forward P/E of 17.62. Over the last 12 months, ANTM's Forward P/E has been as high as 18.72 and as low as 13.85, with a median of 15.34.
Investors will also notice that ANTM has a PEG ratio of 1.28. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ANTM's industry has an average PEG of 1.30 right now. Within the past year, ANTM's PEG has been as high as 1.75 and as low as 1.08, with a median of 1.30.
Another valuation metric that we should highlight is ANTM's P/B ratio of 2.65. 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 attractive against its industry's average P/B of 3.97. Over the past 12 months, ANTM's P/B has been as high as 2.65 and as low as 2.08, with a median of 2.29.
Finally, we should also recognize that ANTM has a P/CF ratio of 14.03. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ANTM's current P/CF looks attractive when compared to its industry's average P/CF of 15.14. Within the past 12 months, ANTM's P/CF has been as high as 14.30 and as low as 11.38, with a median of 12.66.
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.