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Is Anthem (ANTM) Stock Undervalued Right Now?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Anthem (ANTM) is a stock many investors are watching right now. ANTM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also recognize that ANTM has a P/B ratio of 2.27. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.53. ANTM's P/B has been as high as 2.63 and as low as 2.08, with a median of 2.29, over the past year.

Finally, investors should note that ANTM has a P/CF ratio of 12.03. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ANTM's P/CF compares to its industry's average P/CF of 13.48. Within the past 12 months, ANTM's P/CF has been as high as 14.36 and as low as 11.38, with a median of 12.79.

These are only a few of the key metrics included in Anthem's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ANTM looks like an impressive value stock at the moment.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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