We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
If You Invested $1000 in Cigna a Decade Ago, This is How Much It'd Be Worth Now
Read MoreHide Full Article
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Cigna (CI - Free Report) ten years ago? It may not have been easy to hold on to CI for all that time, but if you did, how much would your investment be worth today?
Cigna's Business In-Depth
With that in mind, let's take a look at Cigna's main business drivers.
Headquartered in Bloomfield, CT and formed in 1982, Cigna Corporation has rebranded itself as The Cigna Group. The company was formed as a result of a merger between Connecticut General Life Insurance Company and Insurance Company of North America. Cigna completed its combination with Express Scripts Holding Company by 2018-end. Shares of the new combined company trade on the NYSE under the stock ticker symbol “CI.”
The global health company has also announced rebranding of its segments - Cigna Healthcare and Evernorth Health Services.
The role of the health benefits provider of the company will be fulfilled by Cigna Healthcare, which will cater to customers and clients through its U.S. Commercial, U.S. Government and International Health businesses. Meanwhile, the newly named Evernorth Health Services will be the pharmacy, care and benefits solutions provider of the company.
Till the 2022-end, the company’s reportable segments were as follows:
Evernorth Health Services (constitutes 75.7% of adjusted total segment revenues in 2022) includes a broad range of coordinated and point solution health services, including pharmacy services, benefits management, care solutions and data and analytics, which are provided to health plans, employers, government organizations, and health care providers.
Cigna Healthcare (24.3%): The segment comprises of Cigna's U.S. Commercial, U.S. Government, and International Health businesses that provide comprehensive medical and coordinated solutions to clients and customers.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Cigna, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in July 2013 would be worth $3,844.35, or a 284.43% gain, as of July 5, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 175.82% and the price of gold went up 47.81% over the same time frame.
Going forward, analysts are expecting more upside for CI.
Cigna's revenues have been increasing consistently for the past few years, driven by acquisitions, superior operating performance and a high-quality product portfolio. Business streamlining by divesting its non-core businesses helps it to focus on core growth areas. Increasing membership on the back of a diversified portfolio, wide agent network and superior service are major positives. The company has been resorting to prudent capital deployment moves. For 2023, it expects adjusted earnings per share (EPS) to be at least $24.70, up 6.1% from 2022. CI's shares have outperformed the industry in a year. However, high leverage can affect its financial flexibility. Also, rising operating costs might dent the company's margins. CI's P/E ratio is currently higher than the industry average. As such, the stock warrants a cautious stance.
Over the past four weeks, shares have rallied 6.51%, and there have been 8 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
If You Invested $1000 in Cigna a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Cigna (CI - Free Report) ten years ago? It may not have been easy to hold on to CI for all that time, but if you did, how much would your investment be worth today?
Cigna's Business In-Depth
With that in mind, let's take a look at Cigna's main business drivers.
Headquartered in Bloomfield, CT and formed in 1982, Cigna Corporation has rebranded itself as The Cigna Group. The company was formed as a result of a merger between Connecticut General Life Insurance Company and Insurance Company of North America. Cigna completed its combination with Express Scripts Holding Company by 2018-end. Shares of the new combined company trade on the NYSE under the stock ticker symbol “CI.”
The global health company has also announced rebranding of its segments - Cigna Healthcare and Evernorth Health Services.
The role of the health benefits provider of the company will be fulfilled by Cigna Healthcare, which will cater to customers and clients through its U.S. Commercial, U.S. Government and International Health businesses. Meanwhile, the newly named Evernorth Health Services will be the pharmacy, care and benefits solutions provider of the company.
Till the 2022-end, the company’s reportable segments were as follows:
Evernorth Health Services (constitutes 75.7% of adjusted total segment revenues in 2022) includes a broad range of coordinated and point solution health services, including pharmacy services, benefits management, care solutions and data and analytics, which are provided to health plans, employers, government organizations, and health care providers.
Cigna Healthcare (24.3%): The segment comprises of Cigna's U.S. Commercial, U.S. Government, and International Health businesses that provide comprehensive medical and coordinated solutions to clients and customers.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Cigna, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in July 2013 would be worth $3,844.35, or a 284.43% gain, as of July 5, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 175.82% and the price of gold went up 47.81% over the same time frame.
Going forward, analysts are expecting more upside for CI.
Cigna's revenues have been increasing consistently for the past few years, driven by acquisitions, superior operating performance and a high-quality product portfolio. Business streamlining by divesting its non-core businesses helps it to focus on core growth areas. Increasing membership on the back of a diversified portfolio, wide agent network and superior service are major positives. The company has been resorting to prudent capital deployment moves. For 2023, it expects adjusted earnings per share (EPS) to be at least $24.70, up 6.1% from 2022. CI's shares have outperformed the industry in a year. However, high leverage can affect its financial flexibility. Also, rising operating costs might dent the company's margins. CI's P/E ratio is currently higher than the industry average. As such, the stock warrants a cautious stance.
Over the past four weeks, shares have rallied 6.51%, and there have been 8 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.