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Here's Why Cigna (CI) is a Strong Value Stock

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Cigna (CI)

Headquartered in Bloomfield, CT and formed in 1982, Cigna Corporation has rebranded itself as The Cigna Group. The company was formed as a result of a merger between Connecticut General Life Insurance Company and Insurance Company of North America. Cigna completed its combination with Express Scripts Holding Company by 2018-end. Shares of the new combined company trade on the NYSE under the stock ticker symbol “CI.”

CI is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 10.7X for the current fiscal year compared to the Insurance - Multi line industry's P/E of 8.8X. Additionally, CI has a PEG Ratio of 1 and a Price/Cash Flow ratio of 7.9X. Value investors should also note CI's Price/Sales ratio of 0.4X.

A company's earnings performance is important for value investors as well. For fiscal 2023, nine analysts revised their earnings estimate higher in the last 60 days for CI, while the Zacks Consensus Estimate has increased $0.04 to $24.81 per share. CI also holds an average earnings surprise of 6.6%.

Investors should take the time to consider CI for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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Cigna Group (CI) : Free Stock Analysis Report

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