Anthem Inc. (ANTM:NYE) Analysts rate with a Strong Buy, $524

STA Research
by: STA Research
Anthem Inc. stock

Based on the Anthem Inc. stock forecasts from 14 analysts, the average analyst target price for Anthem Inc. is USD 524.13 over the next 12 months. Anthem Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Anthem Inc. is Bullish, which is based on 5 positive signals and 2 negative signals. At the last closing, Anthem Inc.’s stock price was USD 522.87. Anthem Inc.’s stock price has changed by +6.15% over the past week, +46.87% over the past month and +37.68% over the last year.

Deutsche Bank Capital maintained the Buy rating on the stock, and raised the target to $574 from $453.

Wells Fargo raises the target to $586 from $460, and maintains the Overweight rating on the stock.

Anthem, Inc., through its subsidiaries, operates as a health benefits company in the United States. It operates through four segments: Commercial & Specialty Business, Government Business, IngenioRx, and Other. The company was formerly known as WellPoint, Inc. and changed its name to Anthem, Inc. in December 2014. Anthem, Inc. was founded in 1944 and is headquartered in Indianapolis, Indiana. Address: 220 Virginia Avenue, Indianapolis, IN, United States, 46204.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low debt

The company is less leveraged than its peers and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

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