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.
Strength Seen in Cigna (CI): Can Its 16.7% Jump Turn into More Strength?
Read MoreHide Full Article
Cigna (CI - Free Report) shares rallied 16.7% in the last trading session to close at $301.97. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 11.7% loss over the past four weeks.
Following a significant price decline at the end of November amid rumors of a potential merger between Cigna and Kentucky-based health insurer Humana, the market began correcting CI stock prices toward the close of last week. Its three-day rally saw a substantial increase on Monday, prompted by Cigna's announcement of authorizing a $10 billion increase to its share buyback program and reports of withdrawal from the merger deal. The deal was reportedly abandoned due to disagreements over pricing and regulatory hurdles.
This health insurer is expected to post quarterly earnings of $6.52 per share in its upcoming report, which represents a year-over-year change of +31.5%. Revenues are expected to be $48.82 billion, up 6.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Cigna, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CI going forward to see if this recent jump can turn into more strength down the road.
Cigna is part of the Zacks Medical - HMOs industry. UnitedHealth Group (UNH - Free Report) , another stock in the same industry, closed the last trading session 1.1% lower at $543.68. UNH has returned 1.6% in the past month.
UnitedHealth's consensus EPS estimate for the upcoming report has changed -0.3% over the past month to $5.98. Compared to the company's year-ago EPS, this represents a change of +12%. UnitedHealth currently boasts a Zacks Rank of #3 (Hold).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Strength Seen in Cigna (CI): Can Its 16.7% Jump Turn into More Strength?
Cigna (CI - Free Report) shares rallied 16.7% in the last trading session to close at $301.97. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 11.7% loss over the past four weeks.
Following a significant price decline at the end of November amid rumors of a potential merger between Cigna and Kentucky-based health insurer Humana, the market began correcting CI stock prices toward the close of last week. Its three-day rally saw a substantial increase on Monday, prompted by Cigna's announcement of authorizing a $10 billion increase to its share buyback program and reports of withdrawal from the merger deal. The deal was reportedly abandoned due to disagreements over pricing and regulatory hurdles.
This health insurer is expected to post quarterly earnings of $6.52 per share in its upcoming report, which represents a year-over-year change of +31.5%. Revenues are expected to be $48.82 billion, up 6.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Cigna, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Cigna is part of the Zacks Medical - HMOs industry. UnitedHealth Group (UNH - Free Report) , another stock in the same industry, closed the last trading session 1.1% lower at $543.68. UNH has returned 1.6% in the past month.
UnitedHealth's consensus EPS estimate for the upcoming report has changed -0.3% over the past month to $5.98. Compared to the company's year-ago EPS, this represents a change of +12%. UnitedHealth currently boasts a Zacks Rank of #3 (Hold).