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

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Anthem (ANTM - Free Report) closed the most recent trading day at $237.55, moving +0.13% from the previous trading session. This move lagged the S&P 500's daily gain of 1.09%. At the same time, the Dow added 1.21%, and the tech-heavy Nasdaq gained 1.34%.

Heading into today, shares of the health insurer had lost 4.4% over the past month, lagging the Medical sector's loss of 3.27% and the S&P 500's loss of 1.17% 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 October 23, 2019. In that report, analysts expect ANTM to post earnings of $4.84 per share. This would mark year-over-year growth of 27.03%. Meanwhile, our latest consensus estimate is calling for revenue of $25.41 billion, up 10.58% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $19.36 per share and revenue of $100.75 billion. These totals would mark changes of +21.84% and +10.3%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for ANTM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. ANTM is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that ANTM has a Forward P/E ratio of 12.26 right now. This valuation marks a discount compared to its industry's average Forward P/E of 14.74.

We can also see that ANTM currently has a PEG ratio of 0.88. 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 1.02 as of yesterday's close.

The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% 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.

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