This health insurer beat analysts’ earnings estimates by $0.22 last quarter.
Anthem, Inc. (ANTM)
From AlphaProfit Sector Investors’ Newsletter
Shares of health insurer Anthem, Inc. (ANTM) are down 16% from their 2019 high. They have sold off with shares of other managed care providers after some presidential candidates supported a ‘Medicare-for-All’ bill that would eliminate private health plans.
This drop is a buying opportunity, as this bill is unlikely to become law. Meanwhile, Anthem is performing well. Its first-quarter sales and EPS topped analysts’ forecast. The firm has also upped its 2019 EPS forecast.
The shares are appealing to growth-at-a-reasonable-price Investors, Anthem shares trade at 13.2X-forward EPS versus prospects of 23% EPS growth in the next 12 months. (Next earnings: July 24)
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, www.alphaprofit.com, 281-565-6963, May 2019