Are Investors Undervaluing Cigna Group (CI) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Cigna Group (CI) is a stock many investors are watching right now. CI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another valuation metric that we should highlight is CI's P/B ratio of 1.86. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. CI's current P/B looks attractive when compared to its industry's average P/B of 2.28. Within the past 52 weeks, CI's P/B has been as high as 2.30 and as low as 1.61, with a median of 1.91.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CI has a P/S ratio of 0.45. This compares to its industry's average P/S of 0.73.
Finally, investors will want to recognize that CI has a P/CF ratio of 8.63. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.66. Over the past 52 weeks, CI's P/CF has been as high as 11.09 and as low as 7.47, with a median of 9.80.
CNO Financial Group (CNO) may be another strong Insurance - Multi line stock to add to your shortlist. CNO is a # 2 (Buy) stock with a Value grade of A.
CNO Financial Group sports a P/B ratio of 1.35 as well; this compares to its industry's price-to-book ratio of 2.28. In the past 52 weeks, CNO's P/B has been as high as 2.13, as low as 0.87, with a median of 1.35.
These are only a few of the key metrics included in Cigna Group and CNO Financial Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CI and CNO look like an impressive value stock at the moment.
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Cigna Group (CI) : Free Stock Analysis Report
CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report
