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Anthem (ANTM) Gains But Lags Market: What You Should Know

Zacks Equity Research
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Anthem (ANTM) closed at $304.86 in the latest trading session, marking a +0.61% move from the prior day. This move lagged the S&P 500's daily gain of 1.09%. At the same time, the Dow added 0.84%, and the tech-heavy Nasdaq gained 1.42%.

Coming into today, shares of the health insurer had lost 3.18% in the past month. In that same time, the Medical sector gained 1.58%, while the S&P 500 gained 1.18%.

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 $5.83 per share. This would mark year-over-year growth of 7.76%. Meanwhile, our latest consensus estimate is calling for revenue of $24.25 billion, up 8.52% from the prior-year quarter.

ANTM's full-year Zacks Consensus Estimates are calling for earnings of $19.13 per share and revenue of $99.98 billion. These results would represent year-over-year changes of +20.39% and +9.45%, respectively.

Any recent changes to analyst estimates for ANTM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. ANTM currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, ANTM currently has a Forward P/E ratio of 15.84. This represents a premium compared to its industry's average Forward P/E of 15.79.

Meanwhile, ANTM's PEG ratio is currently 1.08. 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 1.15 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Anthem, Inc. (ANTM) : Free Stock Analysis Report
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