Various factors that influence the price of stocks, including Anthem, include valuation, company developments and the broader economy, according to Zacks. Investor sentiment is another factor.
A stock that trades low compared to its profit potential or performance is said to have a low valuation, explains Zacks. Company developments such as sales, profits, and failure or success of new products can be sensitive to stock trading. This applies to external conditions that threaten a company’s operation such as extreme weather.
Economic conditions, including international and domestic incidences such as inflation, have the capacity to impact prices of stocks in an unpredictable manner. Investor confidence or sentiment can cause the market price to go down or up, which causes the price of stocks to either rise or fall, says Zacks.