Is Anthem (ANTM) a Great Value Stock 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Anthem (ANTM). ANTM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 16.77. This compares to its industry's average Forward P/E of 18.58. Over the past year, ANTM's Forward P/E has been as high as 19.22 and as low as 13.85, with a median of 15.71.

Investors will also notice that ANTM has a PEG ratio of 1.35. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ANTM's industry has an average PEG of 1.37 right now. Over the past 52 weeks, ANTM's PEG has been as high as 1.80 and as low as 1.19, with a median of 1.33.

Another valuation metric that we should highlight is ANTM's P/B ratio of 2.60. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.10. Over the past year, ANTM's P/B has been as high as 2.60 and as low as 2.08, with a median of 2.27.

Finally, investors should note that ANTM has a P/CF ratio of 13.78. 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 15.62. Over the past year, ANTM's P/CF has been as high as 16.19 and as low as 11.38, with a median of 12.90.

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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