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Anthem (ANTM) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3 min read

In the latest trading session, Anthem (ANTM) closed at $308.64, marking a -1.73% move from the previous day. This change lagged the S&P 500's 0.35% loss on the day. Elsewhere, the Dow lost 0.41%, while the tech-heavy Nasdaq lost 0.07%.

Heading into today, shares of the health insurer had gained 0.72% over the past month, lagging the Medical sector's gain of 4.43% and the S&P 500's gain of 3.21% in that time.

Wall Street will be looking for positivity from ANTM as it approaches its next earnings report date. On that day, ANTM is projected to report earnings of $2.51 per share, which would represent a year-over-year decline of 35.31%. Our most recent consensus estimate is calling for quarterly revenue of $30.96 billion, up 14.11% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $22.44 per share and revenue of $119.95 billion, which would represent changes of +15.43% and +16.3%, respectively, from the prior year.

Any recent changes to analyst estimates for ANTM should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.22% higher. ANTM is currently a Zacks Rank #3 (Hold).

Digging into valuation, ANTM currently has a Forward P/E ratio of 13.99. Its industry sports an average Forward P/E of 17.24, so we one might conclude that ANTM is trading at a discount comparatively.

Investors should also note that ANTM has a PEG ratio of 1 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ANTM's industry had an average PEG ratio of 1.38 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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Zacks Investment Research