Anthem, Inc. (ANTM) Buy or Sell Stock Guide

Last updated: Sep 23, '17

The analysis below may be helpful to you if you have any of the following questions about ANTM stock:

  • Is ANTM a buy or a sell?
  • Should I sell or hold ANTM stock today?
  • Is ANTM a good buy / a good investment?
  • What are ANTM analyst opinions, recommendations, ratings?

Here are ANTM stock buy reasons/signals:

1. Anthem has one of the largest and most diverse membership bases in the MCO market, which gives it significant competitive advantages.

2. The firm operates under the well-known Blue Cross/Blue Shield brand in 14 states, giving it a major advantage in the public health insurance exchange market.

3. Anthem's local membership density is a major advantage as it is able to obtain significant pricing advantages.

4. ANTM forward dividend yield is 1.45%, higher than the industry (0.16%) and sector (0.57%) forward dividend yields.

5. ANTM forward P/E ratio is 14.88, and it’s low compared to its industry peers’ P/E ratios.

6. ANTM Price/Book ratio is 1.93, and it’s low compared to its industry peers’ P/B ratios.

7. ANTM PEG ratio (P/E adjusted for growth) is 1.28, and it’s low compared to its industry peers’ PEG ratios.

8. ANTM average analyst rating is Buy.

9. ANTM average analyst price target ($205.35) is above its current price ($182.90).

Here are ANTM stock sell reasons/signals:

1. The changing landscape of the U.S. healthcare market has built unprecedented uncertainty into the operating environment for Anthem.

2. The firm's proposed acquisition of Cigna is under considerable pressure as contentiousness between both management teams and heavy pushback by the U.S. Justice Department threaten to derail the deal.

3. Anthem has underperformed over the past several years and is in the process of reorganizing its operating strategy.

4. ANTM quarterly revenue growth was 4.40%, lower than the industry and sector average revenue growth (4.50% and 6.69%, respectively).

5. ANTM profitability is declining. The YoY profit margin change was -0.32pp.

6. ANTM short interest (days to cover the shorts) ratio is 4.48. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on ANTM?

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