Trade-Ideas LLC identified

Anthem

(

ANTM

) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Anthem as such a stock due to the following factors:

  • ANTM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $268.6 million.
  • ANTM traded 18,536 shares today in the pre-market hours as of 9:11 AM.
  • ANTM is down 3.7% today from yesterday's close.

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More details on ANTM:

Anthem, Inc., through its subsidiaries, operates as a health benefits company in the United States. It operates through three segments: Commercial and Specialty Business, Government Business, and Other. The stock currently has a dividend yield of 1.8%. ANTM has a PE ratio of 16. Currently there are 8 analysts that rate Anthem a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Anthem has been 1.9 million shares per day over the past 30 days. Anthem has a market cap of $37.6 billion and is part of the health care sector and health services industry. The stock has a beta of 0.63 and a short float of 3.5% with 4.59 days to cover. Shares are up 0.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Anthem as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.8%. Since the same quarter one year prior, revenues slightly increased by 6.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.67, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.46, which illustrates the ability to avoid short-term cash problems.
  • ANTHEM INC's earnings per share declined by 14.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ANTHEM INC increased its bottom line by earning $9.33 versus $8.95 in the prior year. This year, the market expects an improvement in earnings ($10.93 versus $9.33).
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, ANTM has underperformed the S&P 500 Index, declining 10.78% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.

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