Anthem outperformed the industry's 33.2 percent growth over a year with a 39.2 percent surge in stock, Zacks Equity Research reports.
Here are five reasons Zacks Equity Research suggests investing in Anthem.
1. Solid 2018 guidance. Anthem expects adjusted net income to surpass $15 per share and projects operating revenues in the range of $90.5 billion to $91.5 billion.
2. Consistent yop-line growth. Anthem experienced a compound annual growth rate of 8 percent from 2012 to 2017.
3. Strong capital position. Since 2011, Anthem has rewarded shareholders with dividends, which it hiked by about 160 percent in the last five years. The company has also demonstrated aggressive engagement in share buybacks.
4. Positive earnings surprise history. Anthem has outpaced the Zacks Consensus Estimate by an average of 9.6 percent in each of the trailing four quarters.
5. Attractive valuation. Anthem is trading at a lower trailing 12-month price to earnings multiple than both the industry average and the S&P 500 index average. Coupled with its "Buy" rank from Zacks, this lower P/E multiple indicates a strong investment bet.