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Cigna Stock Trades Below Industry P/E: Is It Worth Holding Now?
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Key Takeaways
CI shares fell 3.4% YTD but outperformed the industry's 13.5% decline and trade at a forward P/E below peers.
Cigna's Evernorth unit drove growth as adjusted revenues jumped 16% to $235B in 2025.
CI faces rising medical and pharmacy costs, while long-term debt was $30.9B versus $7.7B in cash.
The Cigna Group (CI - Free Report) , a global health company, continues to offer a variety of health solutions and insurance products. It operates through two key segments — Cigna Healthcare, which provides medical, dental and international health plans to employers, individuals and governments, and Evernorth Health Services, which focuses on pharmacy solutions, care coordination and technology-driven services.
Cigna, based in Bloomfield, CT, has a market capitalization of $68.8 billion. The company’s shares have lost 3.4% year to date (YTD), outperforming the industry’s average 13.5% decline over the same period.
Its forward P/E ratio of 8.61x is also lower than the industry average of 13.45x, indicating relatively attractive valuation. Supported by solid prospects, Cigna currently holds a Zacks Rank #3 (Hold) and carries a Value Score of A.
Zacks Estimates for CI
The Zacks Consensus Estimate for 2026 earnings is pegged at $30.29 per share, suggesting a 1.5% year-over-year increase. Over the past month, estimates have seen three upward revisions against one downward revision. The consensus estimate for 2026 revenues is pinned at $284.4 billion, indicating 3.5% year-over-year growth.
Cigna beat earnings estimates in each of the trailing four quarters, with the average surprise being 2.7%.
CI’s 2025 adjusted income from operations rose 4% year over year, driven by strong growth in the Evernorth Health Services segment, particularly within Specialty and Care Services. The company expects adjusted operating income to reach at least $7.95 billion in 2026. Its Evernorth Health Services’ 2025 adjusted revenues increased 16% year over year to $235 billion.
Business mix shifts and ongoing digital transformation reduced the adjusted SG&A expense ratio to 5.0% in 2025. Evernorth Health Services introduced a transformative pharmacy benefits model that passes drug manufacturer discounts directly to customers at the point of sale, lowering out-of-pocket costs. Cigna Healthcare plans to adopt this model for its fully insured customers starting in 2027.
Cigna maintains a strong shareholder-value enhancement program. In 2025, the company repurchased 11.9 million shares for approximately $3.6 billion. The board increased the quarterly dividend to $1.56 per share in early 2026 from $1.51 in 2025, signaling confidence in its long-term cash flow.
CI: Risks to Watch
There are some factors that investors should keep an 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 27% in 2024, and 12% in 2025. The persistent escalation of expenses might weigh on its margin growth. In 2025, the medical cost ratio deteriorated 120 bps year over year to 84.4%, indicating slightly higher medical costs compared to premium revenues.
Cigna has been grappling with a significant debt level over the past several years. At the end of 2025, it had a long-term debt of $30.9 billion, significantly higher than the cash balance of $7.7 billion. The elevated leverage level is likely to keep pressure on the company’s interest expenses going forward.
The Zacks Consensus Estimate for Catalyst Pharmaceutical’s 2026 earnings is pegged at $2.82 per share, which has witnessed three upward revisions in the past 30 days, with no movement in the opposite direction. CPRX beat earnings estimates in each of the trailing four quarters, with the average surprise being 35.2%. The consensus estimate for 2026 revenues is pinned at $630.3 million, implying 7% year-over-year growth.
The Zacks Consensus Estimate for Enovis’ 2026 earnings is pegged at $3.44 per share, which has witnessed one upward revisions in the past 30 days, with no movement in the opposite direction. ENOV beat earnings estimates in each of the trailing four quarters, with the average surprise being 11.4%. The consensus estimate for 2026 revenues is pinned at $2.3 billion, implying 4.3% year-over-year growth.
The Zacks Consensus Estimate for USANA Health’s 2026 earnings is pegged at $2 per share, which has witnessed one upward revision in the past 30 days, with no movement in the opposite direction. USNA beat earnings estimates in each of the trailing four quarters, with the average surprise being 21.9%. The consensus estimate for 2026 revenues is pinned at $942.4 million, implying 1.9% year-over-year growth.
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Cigna Stock Trades Below Industry P/E: Is It Worth Holding Now?
Key Takeaways
The Cigna Group (CI - Free Report) , a global health company, continues to offer a variety of health solutions and insurance products. It operates through two key segments — Cigna Healthcare, which provides medical, dental and international health plans to employers, individuals and governments, and Evernorth Health Services, which focuses on pharmacy solutions, care coordination and technology-driven services.
Cigna, based in Bloomfield, CT, has a market capitalization of $68.8 billion. The company’s shares have lost 3.4% year to date (YTD), outperforming the industry’s average 13.5% decline over the same period.
Its forward P/E ratio of 8.61x is also lower than the industry average of 13.45x, indicating relatively attractive valuation. Supported by solid prospects, Cigna currently holds a Zacks Rank #3 (Hold) and carries a Value Score of A.
Zacks Estimates for CI
The Zacks Consensus Estimate for 2026 earnings is pegged at $30.29 per share, suggesting a 1.5% year-over-year increase. Over the past month, estimates have seen three upward revisions against one downward revision. The consensus estimate for 2026 revenues is pinned at $284.4 billion, indicating 3.5% year-over-year growth.
Cigna beat earnings estimates in each of the trailing four quarters, with the average surprise being 2.7%.
Cigna Group Price, Consensus and EPS Surprise
Cigna Group price-consensus-eps-surprise-chart | Cigna Group Quote
CI’s Growth Drivers
CI’s 2025 adjusted income from operations rose 4% year over year, driven by strong growth in the Evernorth Health Services segment, particularly within Specialty and Care Services. The company expects adjusted operating income to reach at least $7.95 billion in 2026. Its Evernorth Health Services’ 2025 adjusted revenues increased 16% year over year to $235 billion.
Business mix shifts and ongoing digital transformation reduced the adjusted SG&A expense ratio to 5.0% in 2025. Evernorth Health Services introduced a transformative pharmacy benefits model that passes drug manufacturer discounts directly to customers at the point of sale, lowering out-of-pocket costs. Cigna Healthcare plans to adopt this model for its fully insured customers starting in 2027.
Cigna maintains a strong shareholder-value enhancement program. In 2025, the company repurchased 11.9 million shares for approximately $3.6 billion. The board increased the quarterly dividend to $1.56 per share in early 2026 from $1.51 in 2025, signaling confidence in its long-term cash flow.
CI: Risks to Watch
There are some factors that investors should keep an 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 27% in 2024, and 12% in 2025. The persistent escalation of expenses might weigh on its margin growth. In 2025, the medical cost ratio deteriorated 120 bps year over year to 84.4%, indicating slightly higher medical costs compared to premium revenues.
Cigna has been grappling with a significant debt level over the past several years. At the end of 2025, it had a long-term debt of $30.9 billion, significantly higher than the cash balance of $7.7 billion. The elevated leverage level is likely to keep pressure on the company’s interest expenses going forward.
Key Picks
Some better-ranked stocks in the broader Medical space are Catalyst Pharmaceuticals, Inc. (CPRX - Free Report) , Enovis Corporation (ENOV - Free Report) and USANA Health Sciences, Inc. (USNA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Catalyst Pharmaceutical’s 2026 earnings is pegged at $2.82 per share, which has witnessed three upward revisions in the past 30 days, with no movement in the opposite direction. CPRX beat earnings estimates in each of the trailing four quarters, with the average surprise being 35.2%. The consensus estimate for 2026 revenues is pinned at $630.3 million, implying 7% year-over-year growth.
The Zacks Consensus Estimate for Enovis’ 2026 earnings is pegged at $3.44 per share, which has witnessed one upward revisions in the past 30 days, with no movement in the opposite direction. ENOV beat earnings estimates in each of the trailing four quarters, with the average surprise being 11.4%. The consensus estimate for 2026 revenues is pinned at $2.3 billion, implying 4.3% year-over-year growth.
The Zacks Consensus Estimate for USANA Health’s 2026 earnings is pegged at $2 per share, which has witnessed one upward revision in the past 30 days, with no movement in the opposite direction. USNA beat earnings estimates in each of the trailing four quarters, with the average surprise being 21.9%. The consensus estimate for 2026 revenues is pinned at $942.4 million, implying 1.9% year-over-year growth.