5 Best Bear Market Stocks to Buy According to Morgan Stanley

In this article, we discuss 5 best bear market stocks to buy according to Morgan Stanley. If you want to read our detailed analysis of the current market situation, go directly to read 10 Best Bear Market Stocks to Buy According to Morgan Stanley. 

5. Anthem, Inc. (NYSE:ANTM)

Number of Hedge Fund Holders: 69

Anthem, Inc. (NYSE:ANTM) is a global health insurance plan provider. On April 8, the stock hit its all-time high, reaching $520 per share. Keeping its stable performance intact, ANTM delivered a 7.29% return to shareholders in 2022 so far, while its one-year return came in at 27.2%, as of the market close of June 8.

At the end of March 2022, 69 hedge funds tracked by Insider Monkey were bullish on Anthem, Inc. (NYSE:ANTM), owning stakes worth over $5.7 billion. In the previous quarter, 63 hedge funds owned a $5.6 billion worth of stakes in the Indiana-based company.

Anthem, Inc. (NYSE:ANTM) has been raising its dividends consecutively for the last 11 years. The company currently pays a quarterly dividend of $1.28 per share, which grew from $0.80 per share in 2018. As of the close of June 8, the stock offered a yield of 1.03%.

In the first quarter of 2022, Anthem, Inc. (NYSE:ANTM) reported an 18% year-over-year growth in its operating revenue to $37.9 billion. The company’s medical enrolment also increased by over 3.3 million members, taking the total to 46.8 million members. Given the company’s growth in its core businesses, Morgan Stanley lifted its price target on Anthem, Inc. (NYSE:ANTM) to $607, including it in its list of one of the best bear market stocks. In May, Bernstein also lifted its price target on the stock to $596, with an Outperform rating on the shares.

ClearBridge Investments mentioned Anthem, Inc. (NYSE:ANTM) in its Q4 2021 investor letter. Here is what the firm has to say:

“The quarter also saw strong showings from Anthem; has been operating well and is a key player in the evolution of health care insurance and delivery, providing more integrated and cost-effective solutions and receiving a tailwind from an aging population. The company tends to be volatile based on changes in medical loss ratios (MLR), though we view this volatility as a short term for business models that are able to reprice policies relatively quickly. We added significantly to the position during the year.”