Anthem, Inc. (ANTM) is one of the largest private health insurance organizations nationwide, providing medical benefits to roughly 44 million medical members. The company offers employer, individual, and government-sponsored coverage plans. It is also the largest single provider of Blue Cross Blue Shield branded coverage.

The company is benefiting from a premium rate increase and higher membership. In addition, acquisitions have enabled the company to boost its Medicare Advantage growth. ANTM also saw a rise in the usage of its virtual care services. Plus, its Medicare and Medicaid businesses should help increase its membership going forward.

Photo by Marcelo Leal on Unsplash

The company’s balance sheet looks solid with a debt-to-equity ratio of only 0.6. Growth also looks strong with earnings rising an average of 21.1% per year over the past five years. Analysts expect earnings to surge 100.8% year over year in the current quarter, leading to a Growth Grade of A in our POWR Ratings system.

The stock also looks undervalued with a forward P/E of 14.49. ANTM was showing bullish momentum in October, but performance has been mixed since, as shown in the chart below.

Take a look at the 1-year chart of ANTM below with added notations:

(Click on image to enlarge)

Chart of ANTM provided by TradingView

ANTM jumped higher back in October, eventually moving into a rectangle pattern (blue) with support at around $414 and a $440 resistance area. Whichever of those two levels breaks will likely dictate the stock’s next big move.

ANTM shares were trading at $422.12 per share on Wednesday morning, down $1.54 (-0.36%). Year-to-date, ANTM has gained 32.69%, versus a 26.15% rise in the benchmark S&P 500 index during the same period.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year

9 "Must Own" Growth Stocks

How to Trade Options with the POWR Ratings

7 SEVERELY Undervalued Stocks