Is Anthem (ANTM) Stock Undervalued Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 15.94, which compares to its industry's average of 18.22. ANTM's Forward P/E has been as high as 19.22 and as low as 13.85, with a median of 15.28, all within the past year.

Investors will also notice that ANTM has a PEG ratio of 1.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ANTM's industry currently sports an average PEG of 1.41. Over the last 12 months, ANTM's PEG has been as high as 1.80 and as low as 1.19, with a median of 1.35.

Investors should also recognize that ANTM has a P/B ratio of 2.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. ANTM's current P/B looks attractive when compared to its industry's average P/B of 3.93. Over the past year, ANTM's P/B has been as high as 2.52 and as low as 1.80, with a median of 2.21.

Finally, investors should note that ANTM has a P/CF ratio of 13. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.09. Over the past 52 weeks, ANTM's P/CF has been as high as 16.19 and as low as 11.38, with a median of 12.97.

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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