Published on 11 Mar 2022 on Zacks via Yahoo Finance
Anthem (ANTM) to be Renamed as Elevance Health for Rebranding
Anthem, Inc. ANTM recently announced that it has the intensions to change its name to Elevance Health, Inc. However, the same is subject to its shareholder approvals.This name change is expected to reflect the leading health insurer’s expanding business. Management thinks that the rebranding step is essential for its future. It expects ANTM to serve communities through a holistic approach after this fresh alteration. Anthem owns Blue Cross Blue Shield plans in 14 states, names of which will not change.This move will eventually optimize ANTM’s portfolio, which currently serves more than 118 million customers. Changing names and rebranding are nothing new in this space. Earlier, Anthem adopted the name WellPoint Inc. following its merger in 2004 until it switched back to its original name in 2014.One of its peers, UnitedHealth Group, Inc. UNH, separated its UnitedHealthcare unit from Optum to streamline its operations. Optum gradually became a brand known for pharmacy care services, care delivery, technology, government services etc.In 2018, CVS Health Corporation CVS purchased Aetna and uses the name Aetna for business.Coming to Anthem, this change is necessary because ANTM outpaced traditional health insurance services and penetrated pharmacy, behavioral, clinical and various other areas of healthcare. Its digital capabilities helped provide value-based care to its customers. ANTM continues witnessing a rise in the usage of its virtual care services, which is a vital driver.Diversification helps health insurance players add businesses with high margins and a rapid growth potential.Shares of this presently Zacks Rank #3 (Hold) player have gained 38.5% in a year's time, outperforming its industry's growth of 33.2%. Strategic buyouts and collaborations, an improving top line and ANTM’s expanded product portfolio should drive long-term growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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