Anthem Makes Strong Start to Year and Raises 2022 Outlook Slightly; Shares Moderately Rich

Anthem delivered a strong first quarter and raised its outlook for 2022 a bit. With this strong start to 2022 and cash flows since our last valuation update, we are boosting our fair value estimate in the mid-single digits. Anthem's narrow moat remains intact, too, and is primarily based on its local scale leadership that helps it offer lower premiums than most health insurers. Anthem led the U.S. medical membership landscape with 46.8 million members at the end of March, higher than even UnitedHealth's 45.5 million U.S. members, despite the latter's broader national network.