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Here's Why You Should Hold Cigna Stock in Your Portfolio for Now
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Key Takeaways
CI is up 14.7% YTD, outperforming the industry's 29.1% drop, backed by dual-segment strength.
Evernorth revenues rose 16% to $53.7B in Q1 2025; Cigna Healthcare grew 9% year over year.
CI faces margin pressure from rising benefit costs and carries $26.5B in long-term debt.
The Cigna Group (CI - Free Report) , a longstanding global health company, continues to offer a variety of health solutions and insurance products. It operates through two main divisions: Cigna Healthcare and Evernorth Health Services. The company’s shares have gained 14.7% in the year-to-date (YTD) period against the industry average of a 29.1% decline.
Headquartered in Bloomfield, CT, Cigna holds a market capitalization of $84.7 billion. Cigna Healthcare provides a health benefits function, catering to customers and clients through its U.S. Commercial, U.S. Government and International Health businesses. Meanwhile, Evernorth Health Services operates as the pharmacy, care and benefits solutions provider. Its forward P/E of 8.72X is lower than the industry average of 13.87X. Courtesy of solid prospects, Cigna currently carries a Zacks Rank #3 (Hold) and Growth Score of A.
Where Do Estimates for CI Stand?
The Zacks Consensus Estimate for Cigna’s 2025 earnings is pegged at $29.68 per share, indicating an 8.6% year-over-year rise. In the past month, it has witnessed 10 upward estimate revisions against one in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $257 billion for 2025.
It beat earnings estimates in three of the past four quarters and missed once.
Cigna continues to drive growth through strategic acquisitions and partnerships. Its partnership with Centene and Virgin Pulse supports long-term growth. The company anticipates its adjusted operating income to be a minimum of $7.9 billion in 2025.
Evernorth Health Services’ adjusted revenues increased 16% year over year to $53.7 billion in the first quarter of 2025. Its Cigna Healthcare segment grew 9% year over year in the first quarter. The company’s Specialty Pharmacy market continues to grow at a remarkable pace as new specialty drugs are introduced, existing medications are authorized for expanded indications and biosimilars become more prevalent.
In the first quarter of 2025, the company bought back common shares worth $1.5 million. From the start of the year till May 1, it repurchased a total of 8.2 million shares for $2.6 billion. This highlights its shareholder value-boosting efforts.
CI: Risks to Watch
However, there are some factors that investors should keep a careful eye on.
The company’s total benefits and expenses escalated over the last several years due to higher pharmacy and other service costs, medical costs and other benefit expenses. Total benefits and expenses witnessed a year-over-year increase of 9% in 2023, 4% in 2024 and 16% in the first quarter of 2025. The persistent escalation of expenses might weigh on its margin growth. In the first quarter of 2025, the medical cost ratio deteriorated 230 bps year over year to 82.2%.
Cigna has been grappling with a significant debt level over the past several years. As of March 31, 2025, it had a long-term debt of $26.5 billion, significantly higher than the cash balance of $8.3 billion. This is likely to put pressure on the company’s interest expenses. Its net debt to capital is 33.1%, higher than the industry’s average of 22.5%.
The Zacks Consensus Estimate for Clover Health Investments’ current-year earnings of 11 cents per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Clover Health Investments beat earnings estimates in each of the trailing four quarters, with the average surprise being 114.6%. The consensus estimate for current-year revenues is pegged at $1.9 billion, suggesting 37.7% year-over-year growth.
The Zacks Consensus Estimate for GeneDx Holdings’ current-year earnings of $1.09 per share has witnessed one upward revision in the past 60 days against no movement in the opposite direction. GeneDx Holdings beat earnings estimates in each of the trailing four quarters, with the average surprise being 145.8%. The consensus estimate for current-year revenues is pegged at $374.1 million, suggesting 22.5% year-over-year growth.
The Zacks Consensus Estimate for Integer Holdings’ current-year earnings of $6.33 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Integer Holdings beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 2.8%. The consensus estimate for current-year revenues is pegged at $1.9 billion, suggesting 7.7% year-over-year growth.
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Here's Why You Should Hold Cigna Stock in Your Portfolio for Now
Key Takeaways
The Cigna Group (CI - Free Report) , a longstanding global health company, continues to offer a variety of health solutions and insurance products. It operates through two main divisions: Cigna Healthcare and Evernorth Health Services. The company’s shares have gained 14.7% in the year-to-date (YTD) period against the industry average of a 29.1% decline.
Headquartered in Bloomfield, CT, Cigna holds a market capitalization of $84.7 billion. Cigna Healthcare provides a health benefits function, catering to customers and clients through its U.S. Commercial, U.S. Government and International Health businesses. Meanwhile, Evernorth Health Services operates as the pharmacy, care and benefits solutions provider. Its forward P/E of 8.72X is lower than the industry average of 13.87X.
Courtesy of solid prospects, Cigna currently carries a Zacks Rank #3 (Hold) and Growth Score of A.
Where Do Estimates for CI Stand?
The Zacks Consensus Estimate for Cigna’s 2025 earnings is pegged at $29.68 per share, indicating an 8.6% year-over-year rise. In the past month, it has witnessed 10 upward estimate revisions against one in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $257 billion for 2025.
It beat earnings estimates in three of the past four quarters and missed once.
Cigna Group Price and EPS Surprise
Cigna Group price-eps-surprise | Cigna Group Quote
CI’s Growth Drivers
Cigna continues to drive growth through strategic acquisitions and partnerships. Its partnership with Centene and Virgin Pulse supports long-term growth. The company anticipates its adjusted operating income to be a minimum of $7.9 billion in 2025.
Evernorth Health Services’ adjusted revenues increased 16% year over year to $53.7 billion in the first quarter of 2025. Its Cigna Healthcare segment grew 9% year over year in the first quarter. The company’s Specialty Pharmacy market continues to grow at a remarkable pace as new specialty drugs are introduced, existing medications are authorized for expanded indications and biosimilars become more prevalent.
In the first quarter of 2025, the company bought back common shares worth $1.5 million. From the start of the year till May 1, it repurchased a total of 8.2 million shares for $2.6 billion. This highlights its shareholder value-boosting efforts.
CI: Risks to Watch
However, there are some factors that investors should keep a careful eye on.
The company’s total benefits and expenses escalated over the last several years due to higher pharmacy and other service costs, medical costs and other benefit expenses. Total benefits and expenses witnessed a year-over-year increase of 9% in 2023, 4% in 2024 and 16% in the first quarter of 2025. The persistent escalation of expenses might weigh on its margin growth. In the first quarter of 2025, the medical cost ratio deteriorated 230 bps year over year to 82.2%.
Cigna has been grappling with a significant debt level over the past several years. As of March 31, 2025, it had a long-term debt of $26.5 billion, significantly higher than the cash balance of $8.3 billion. This is likely to put pressure on the company’s interest expenses. Its net debt to capital is 33.1%, higher than the industry’s average of 22.5%.
Key Picks
Some better-ranked stocks in the Medical space are Clover Health Investments Corp (CLOV - Free Report) , GeneDx Holdings Corp (WGS - Free Report) and Integer Holdings Corporation (ITGR - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Clover Health Investments’ current-year earnings of 11 cents per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Clover Health Investments beat earnings estimates in each of the trailing four quarters, with the average surprise being 114.6%. The consensus estimate for current-year revenues is pegged at $1.9 billion, suggesting 37.7% year-over-year growth.
The Zacks Consensus Estimate for GeneDx Holdings’ current-year earnings of $1.09 per share has witnessed one upward revision in the past 60 days against no movement in the opposite direction. GeneDx Holdings beat earnings estimates in each of the trailing four quarters, with the average surprise being 145.8%. The consensus estimate for current-year revenues is pegged at $374.1 million, suggesting 22.5% year-over-year growth.
The Zacks Consensus Estimate for Integer Holdings’ current-year earnings of $6.33 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Integer Holdings beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 2.8%. The consensus estimate for current-year revenues is pegged at $1.9 billion, suggesting 7.7% year-over-year growth.