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.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Anthem . ANTM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.43, which compares to its industry's average of 14.68. Over the past year, ANTM's Forward P/E has been as high as 17.02 and as low as 11.69, with a median of 15.40.
Investors will also notice that ANTM has a PEG ratio of 0.91. 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 PEG compares to its industry's average PEG of 1.09. Within the past year, ANTM's PEG has been as high as 1.42 and as low as 0.80, with a median of 1.16.
Investors should also recognize that ANTM has a P/B ratio of 2.44. Investors use the P/B ratio to look at a stock's market value versus 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 3.35. Over the past year, ANTM's P/B has been as high as 2.88 and as low as 2.03, with a median of 2.42.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Anthem is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ANTM feels like a great value stock at the moment.
Image: Bigstock
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.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Anthem . ANTM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.43, which compares to its industry's average of 14.68. Over the past year, ANTM's Forward P/E has been as high as 17.02 and as low as 11.69, with a median of 15.40.
Investors will also notice that ANTM has a PEG ratio of 0.91. 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 PEG compares to its industry's average PEG of 1.09. Within the past year, ANTM's PEG has been as high as 1.42 and as low as 0.80, with a median of 1.16.
Investors should also recognize that ANTM has a P/B ratio of 2.44. Investors use the P/B ratio to look at a stock's market value versus 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 3.35. Over the past year, ANTM's P/B has been as high as 2.88 and as low as 2.03, with a median of 2.42.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Anthem is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ANTM feels like a great value stock at the moment.