Anthem (ANTM) Hits New Lifetime High

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.

Trade-Ideas LLC identified Anthem ( ANTM) as a new lifetime high 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 $396.5 million.
  • ANTM has traded 15,557 shares today.
  • ANTM is trading at a new lifetime high.

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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 1.6%. ANTM has a PE ratio of 16. Currently there are 8 analysts that rate Anthem a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for Anthem has been 1.7 million shares per day over the past 30 days. Anthem has a market cap of $42.0 billion and is part of the health care sector and health services industry. The stock has a beta of 0.41 and a short float of 2.5% with 2.83 days to cover. Shares are up 26.4% 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:
  • Powered by its strong earnings growth of 30.37% and other important driving factors, this stock has surged by 48.74% 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 has improved earnings per share by 30.4% 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 ($10.00 versus $8.95).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Health Care Providers & Services industry average. The net income increased by 23.4% when compared to the same quarter one year prior, going from $701.00 million to $865.20 million.
  • ANTM's revenue growth trails the industry average of 18.5%. Since the same quarter one year prior, revenues slightly increased by 6.7%. 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 0.65, 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 1.50, which demonstrates the ability of the company to cover short-term liquidity needs.

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