Unusual Social Activity Today Around Anthem (ANTM) - TheStreet

Trade-Ideas LLC identified

Anthem

(

ANTM

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Anthem as such a stock due to the following factors:

  • ANTM has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 2.94 mentions/day.
  • ANTM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $357.6 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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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 14. Currently there are 9 analysts that rate Anthem a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Anthem has been 2.2 million shares per day over the past 30 days. Anthem has a market cap of $37.1 billion and is part of the health care sector and health services industry. The stock has a beta of 0.76 and a short float of 4.5% with 4.58 days to cover. Shares are up 15.1% year-to-date as of the close of trading on Tuesday.

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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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • ANTHEM INC has improved earnings per share by 22.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ANTHEM INC increased its bottom line by earning $8.95 versus $8.66 in the prior year. This year, the market expects an improvement in earnings ($10.21 versus $8.95).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Health Care Providers & Services industry average. The net income increased by 17.5% when compared to the same quarter one year prior, going from $731.10 million to $859.10 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.2%. Since the same quarter one year prior, revenues slightly increased by 8.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.72, 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 1.49, which illustrates the ability to avoid short-term cash problems.

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