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Cigna (CI) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Cigna (CI - Free Report) closed at $308.17, marking a -0.06% move from the previous day. This change lagged the S&P 500's 1.19% gain on the day. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 0.29%.
Prior to today's trading, shares of the health insurer had lost 7.76% over the past month. This has lagged the Finance sector's gain of 6.33% and the S&P 500's gain of 4.06% in that time.
Cigna will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2023. On that day, Cigna is projected to report earnings of $4.84 per share, which would represent year-over-year growth of 1.47%. Our most recent consensus estimate is calling for quarterly revenue of $45.58 billion, down 0.22% from the year-ago period.
Any recent changes to analyst estimates for Cigna should also be noted by investors. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cigna currently has a Zacks Rank of #3 (Hold).
Investors should also note Cigna's current valuation metrics, including its Forward P/E ratio of 12.43. This represents a premium compared to its industry's average Forward P/E of 9.58.
Meanwhile, CI's PEG ratio is currently 1.1. 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. The Insurance - Multi line was holding an average PEG ratio of 1.24 at yesterday's closing price.
The Insurance - Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.