Anthem stock is the IBD Stock of the Day. Shares briefly retook their 50-day line on Monday as the health-insurance giant outperforms the broader market in recent months.
ANTM stock is close to an early entry within a new flat base. Still, with the market in correction, investors may want to watch rather than buy stocks right now.
Anthem Stock
Anthem stock rose 0.4% to 494.85 in the stock market today. That's just below its 50-day line after clearing that key measure of investor support earlier in the session. ANTM stock tumbled below that level last Wednesday, then rebounded late in the week.
If the stock pushes above Monday's high of 500.61, it would break a downtrend that began after April 21. At that point, shares began fading from a record high of 533.68.
On a weekly MarketSmith chart, ANTM stock has a flat base with a 533.78 buy point.
The relative strength line of Anthem stock is at an all-time high. The RS line, the blue line in the chart provided, tracks a stock's performance vs. the S&P 500.
Shares have a 97 Composite Rating. Their EPS Rating is 95.
Anthem stock shareholders this month approved the company's planned name change to Elevance Health. That change is slated to happen on June 28. The company will also begin trading under a new ticker, ELV, on that day.
Anthem runs Blue Cross Blue Shield plans in multiple states. Analysts who follow Anthem stock say it typically does well when prices and interest rates rise.
When rates rise, Anthem's investment income does as well, as an IBD story from March explained. Were layoffs to rise in a weakening economy, Anthem's commercial insurance membership might suffer. Its Medicaid business, however, could grow under that situation.
Anthem stock analysts also point to improvements under the leadership of CEO Gail Boudreaux, who took the helm in 2017. Gains in Anthem's Medicaid business helped put its U.S. membership past that of rival UnitedHealth.
UnitedHealth added 1.3% on Monday, continuing a recent bounce from the 200-day line but below the 50-day line.
