On Nov 7, we updated our research report on CIGNA Corp. (CI - Free Report) . The company’s third-quarter 2016 consolidated revenue increased 5% year over year to $9.9 billion. It reported adjusted income from operations of $503 million or $1.94 per share, reflecting strong performance in its Commercial Health Care and Global Supplemental Benefits business lines and improving results in its Group Disability and Life segment.
The company is consistently making investments in value-based care programs and incentive payment models to provide quality care at affordable cost. It tries to achieve this via collaborative accountable care (CAC) arrangements. It has 160 such arrangements in place across 29 states, serving over two million customers. Its CAC initiatives have also helped in controlling medical cost.
Also, the company’s Global Health Care and Global Supplemental Benefits businesses are performing strongly with high customer retention levels and solid revenue and earnings growth.
Cigna has been growing it membership for the past many quarters. The company ended the third quarter with more than 15.2 million medical members, up 2.2% year over year. We expect a rise in membership going forward, driven by organic growth in Cigna’s Middle Market, International, Select, and Medicare segments. For 2016, the company expects global medical membership to increase in the low single-digit percentage range.
Nevertheless, the company faces a ban on selling private Medicare plans this enrollment season because of an investigation by U.S. regulators. The ban was imposed because the company was found guilty of non compliance with rules relating to Medicare policies.
The company has also been sued by the Justice Department over its acquisition by Anthem Inc. .
Cigna carries a Zacks Rank #3 (Hold). Other health insurers that have reported better-than-expected third-quarter earnings like Cigna include UnitedHealth Group Inc. (UNH - Free Report) and Humana Inc. (HUM - Free Report) both with a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
On Nov 7, we updated our research report on CIGNA Corp. (CI - Free Report) . The company’s third-quarter 2016 consolidated revenue increased 5% year over year to $9.9 billion. It reported adjusted income from operations of $503 million or $1.94 per share, reflecting strong performance in its Commercial Health Care and Global Supplemental Benefits business lines and improving results in its Group Disability and Life segment.
The company is consistently making investments in value-based care programs and incentive payment models to provide quality care at affordable cost. It tries to achieve this via collaborative accountable care (CAC) arrangements. It has 160 such arrangements in place across 29 states, serving over two million customers. Its CAC initiatives have also helped in controlling medical cost.
Also, the company’s Global Health Care and Global Supplemental Benefits businesses are performing strongly with high customer retention levels and solid revenue and earnings growth.
Cigna has been growing it membership for the past many quarters. The company ended the third quarter with more than 15.2 million medical members, up 2.2% year over year. We expect a rise in membership going forward, driven by organic growth in Cigna’s Middle Market, International, Select, and Medicare segments. For 2016, the company expects global medical membership to increase in the low single-digit percentage range.
Nevertheless, the company faces a ban on selling private Medicare plans this enrollment season because of an investigation by U.S. regulators. The ban was imposed because the company was found guilty of non compliance with rules relating to Medicare policies.
The company has also been sued by the Justice Department over its acquisition by Anthem Inc. .
Cigna carries a Zacks Rank #3 (Hold). Other health insurers that have reported better-than-expected third-quarter earnings like Cigna include UnitedHealth Group Inc. (UNH - Free Report) and Humana Inc. (HUM - Free Report) both with a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on UNH - FREE
Get the latest research report on HUM - FREE
Get the latest research report on CI - FREE