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Cigna (CI) Rises Higher Than Market: Key Facts

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The most recent trading session ended with Cigna (CI - Free Report) standing at $294.45, reflecting a +0.92% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.43%. At the same time, the Dow added 0.19%, and the tech-heavy Nasdaq gained 0.71%.

The health insurer's shares have seen an increase of 1.83% over the last month, surpassing the Medical sector's loss of 3.35% and the S&P 500's loss of 2.1%.

The investment community will be paying close attention to the earnings performance of Cigna in its upcoming release. The company is slated to reveal its earnings on November 2, 2023. It is anticipated that the company will report an EPS of $6.66, marking a 10.26% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $48.16 billion, indicating a 6.16% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $24.80 per share and a revenue of $191.63 billion, signifying shifts of +6.57% and +6.09%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Cigna. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 has moved 0.01% higher. Currently, Cigna is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Cigna currently has a Forward P/E ratio of 11.76. This valuation marks a discount compared to its industry's average Forward P/E of 16.36.

One should further note that CI currently holds a PEG ratio of 1.05. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Medical - HMOs industry was having an average PEG ratio of 1.11.

The Medical - HMOs industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 52, positioning it in the top 21% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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