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Cigna (CI) Gains As Market Dips: What You Should Know
In the latest trading session, Cigna (CI - Free Report) closed at $315, marking a +0.25% move from the previous day. This move outpaced the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 1.14%, and the Nasdaq, a tech-heavy index, added 1.39%.
Prior to today's trading, shares of the health insurer had lost 5.01% over the past month. This has lagged the Finance sector's gain of 7.8% and the S&P 500's gain of 4.01% in that time.
Investors will be hoping for strength from Cigna as it approaches its next earnings release, which is expected to be February 3, 2023. The company is expected to report EPS of $4.84, up 1.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $45.58 billion, down 0.22% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Cigna. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cigna is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that Cigna has a Forward P/E ratio of 12.66 right now. Its industry sports an average Forward P/E of 9.54, so we one might conclude that Cigna is trading at a premium comparatively.
Also, we should mention that CI has a PEG ratio of 1.13. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Insurance - Multi line stocks are, on average, holding a PEG ratio of 1.21 based on yesterday's closing prices.
The Insurance - Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.