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Cigna (CI) Outpaces Stock Market Gains: What You Should Know
Cigna (CI - Free Report) closed the most recent trading day at $272.90, moving +1.28% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.89%. At the same time, the Dow added 1.2%, and the tech-heavy Nasdaq lost 0.68%.
Coming into today, shares of the health insurer had lost 10.5% in the past month. In that same time, the Finance sector lost 11.27%, while the S&P 500 lost 3.9%.
Cigna will be looking to display strength as it nears its next earnings release. On that day, Cigna is projected to report earnings of $5.35 per share, which would represent a year-over-year decline of 10.98%. Meanwhile, our latest consensus estimate is calling for revenue of $45.26 billion, up 2.62% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $24.77 per share and revenue of $187.69 billion, which would represent changes of +6.45% and +3.9%, respectively, from the prior year.
Any recent changes to analyst estimates for Cigna should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.87% higher within the past month. Cigna is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Cigna is holding a Forward P/E ratio of 10.88. For comparison, its industry has an average Forward P/E of 8.29, which means Cigna is trading at a premium to the group.
Meanwhile, CI's PEG ratio is currently 0.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Insurance - Multi line industry currently had an average PEG ratio of 0.96 as of yesterday's close.
The Insurance - Multi line industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.