Back to top

Image: Bigstock

Anthem (ANTM) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Anthem (ANTM - Free Report) closed at $277.82, marking a +0.82% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.21%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.27%.

Heading into today, shares of the health insurer had gained 5.7% over the past month, outpacing the Medical sector's loss of 1.96% and the S&P 500's loss of 5.26% in that time.

Investors will be hoping for strength from ANTM as it approaches its next earnings release. In that report, analysts expect ANTM to post earnings of $4.62 per share. This would mark year-over-year growth of 8.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.84 billion, up 9.36% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $19.29 per share and revenue of $100.16 billion, which would represent changes of +21.4% and +9.66%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for ANTM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. ANTM is currently a Zacks Rank #3 (Hold).

Investors should also note ANTM's current valuation metrics, including its Forward P/E ratio of 14.29. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 14.29.

Also, we should mention that ANTM has a PEG ratio of 0.97. 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. The Medical - HMOs industry currently had an average PEG ratio of 1 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 14, which puts it in the top 6% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ANTM in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

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

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

Published in