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Cigna (CI) Gains But Lags Market: What You Should Know

Zacks Equity Research

In the latest trading session, Cigna (CI) closed at $152.40, marking a +1.04% move from the previous day. This change lagged the S&P 500's 1.09% gain on the day. At the same time, the Dow added 1.21%, and the tech-heavy Nasdaq gained 1.34%.

Prior to today's trading, shares of the health insurer had lost 5.13% over the past month. This has lagged the Finance sector's loss of 1.13% and the S&P 500's loss of 1.17% in that time.

CI will be looking to display strength as it nears its next earnings release, which is expected to be October 31, 2019. The company is expected to report EPS of $4.37, up 13.8% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $33.92 billion, up 196.34% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $16.77 per share and revenue of $136.24 billion, which would represent changes of +17.93% and +183.18%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CI. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. CI is currently a Zacks Rank #2 (Buy).

Investors should also note CI's current valuation metrics, including its Forward P/E ratio of 8.99. This valuation marks a discount compared to its industry's average Forward P/E of 10.52.

Investors should also note that CI has a PEG ratio of 0.77 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Insurance - Multi line was holding an average PEG ratio of 1.16 at yesterday's closing price.

The Insurance - Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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