Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 0.77 mentions/day.
  • ANTM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $301.5 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in ANTM with the Ticky from Trade-Ideas. See the FREE profile for ANTM NOW at Trade-Ideas

More details on ANTM:

Anthem, Inc., a health benefits company, through its subsidiaries, provides a range of medical products in the United States. The company offers a spectrum of network-based managed care health benefit plans to large and small employer, individual, Medicaid, and senior markets. The stock currently has a dividend yield of 1.8%. ANTM has a PE ratio of 15.5. Currently there are 8 analysts that rate Anthem a buy, no analysts rate it a sell, and 11 rate it a hold.

The average volume for Anthem has been 1.5 million shares per day over the past 30 days. Anthem has a market cap of $37.0 billion and is part of the health care sector and health services industry. The stock has a beta of 0.56 and a short float of 4% with 5.02 days to cover. Shares are up 9.5% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 76.47% and other important driving factors, this stock has surged by 60.59% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ANTM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ANTHEM INC reported significant earnings per share improvement 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 ($9.78 versus $8.95).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 241.9% when compared to the same quarter one year prior, rising from $148.20 million to $506.70 million.
  • ANTM's revenue growth trails the industry average of 20.5%. Since the same quarter one year prior, revenues slightly increased by 6.0%. 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 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, ANTM has a quick ratio of 1.63, which demonstrates the ability of the company to cover short-term liquidity needs.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null