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Here's Why Cigna (CI) Fell More Than Broader Market
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The latest trading session saw Cigna (CI - Free Report) ending at $301.05, denoting a -1.87% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.17%. Meanwhile, the Dow experienced a drop of 0.58%, and the technology-dominated Nasdaq saw an increase of 0.27%.
Prior to today's trading, shares of the health insurer had gained 5.99% over the past month. This has outpaced the Medical sector's loss of 5.22% and the S&P 500's loss of 3.95% in that time.
Investors will be eagerly watching for the performance of Cigna in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 2, 2023. On that day, Cigna is projected to report earnings of $6.66 per share, which would represent year-over-year growth of 10.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $48.16 billion, up 6.16% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $24.80 per share and revenue of $191.63 billion. These totals would mark changes of +6.57% and +6.09%, respectively, from last year.
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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Cigna boasts a Zacks Rank of #3 (Hold).
Investors should also note Cigna's current valuation metrics, including its Forward P/E ratio of 12.37. This denotes a discount relative to the industry's average Forward P/E of 16.78.
It's also important to note that CI currently trades at a PEG ratio of 1.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Medical - HMOs stocks are, on average, holding a PEG ratio of 1.15 based on yesterday's closing prices.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Here's Why Cigna (CI) Fell More Than Broader Market
The latest trading session saw Cigna (CI - Free Report) ending at $301.05, denoting a -1.87% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.17%. Meanwhile, the Dow experienced a drop of 0.58%, and the technology-dominated Nasdaq saw an increase of 0.27%.
Prior to today's trading, shares of the health insurer had gained 5.99% over the past month. This has outpaced the Medical sector's loss of 5.22% and the S&P 500's loss of 3.95% in that time.
Investors will be eagerly watching for the performance of Cigna in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 2, 2023. On that day, Cigna is projected to report earnings of $6.66 per share, which would represent year-over-year growth of 10.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $48.16 billion, up 6.16% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $24.80 per share and revenue of $191.63 billion. These totals would mark changes of +6.57% and +6.09%, respectively, from last year.
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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Cigna boasts a Zacks Rank of #3 (Hold).
Investors should also note Cigna's current valuation metrics, including its Forward P/E ratio of 12.37. This denotes a discount relative to the industry's average Forward P/E of 16.78.
It's also important to note that CI currently trades at a PEG ratio of 1.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Medical - HMOs stocks are, on average, holding a PEG ratio of 1.15 based on yesterday's closing prices.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.