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

Zacks Equity Research
Boston Private Financial (BPFH) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Anthem (ANTM) closed at $288.13 in the latest trading session, marking a -0.68% move from the prior day. This change lagged the S&P 500's 0.35% gain on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 0.7%.

Heading into today, shares of the health insurer had lost 2.32% over the past month, lagging the Medical sector's gain of 1.51% and the S&P 500's gain of 5.14% in that time.

Wall Street will be looking for positivity from ANTM as it approaches its next earnings report date. This is expected to be April 24, 2019. On that day, ANTM is projected to report earnings of $5.83 per share, which would represent year-over-year growth of 7.76%. Our most recent consensus estimate is calling for quarterly revenue of $24.25 billion, up 8.52% from the year-ago period.

ANTM's full-year Zacks Consensus Estimates are calling for earnings of $19.15 per share and revenue of $99.98 billion. These results would represent year-over-year changes of +20.52% and +9.45%, respectively.

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. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. ANTM is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, ANTM currently has a Forward P/E ratio of 15.15. This valuation marks a discount compared to its industry's average Forward P/E of 15.43.

It is also worth noting that ANTM currently has a PEG ratio of 1.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - HMOs was holding an average PEG ratio of 1.18 at yesterday's closing price.

The Medical - HMOs industry is part of the Medical sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

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