In the latest trading session, Cigna (CI - Free Report) closed at $194.70, marking a +0.1% move from the previous day. The stock lagged the S&P 500's daily gain of 1.32%. Meanwhile, the Dow gained 1.38%, and the Nasdaq, a tech-heavy index, added 1.74%.
Heading into today, shares of the health insurer had gained 8.18% over the past month, outpacing the Finance sector's gain of 6.24% and the S&P 500's gain of 4.16% in that time.
CI will be looking to display strength as it nears its next earnings release, which is expected to be February 1, 2019. In that report, analysts expect CI to post earnings of $2.53 per share. This would mark year-over-year growth of 30.41%. Meanwhile, our latest consensus estimate is calling for revenue of $11.34 billion, up 7.87% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for CI. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 10.67% higher. CI is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that CI has a Forward P/E ratio of 11.32 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.26.
It is also worth noting that CI currently has a PEG ratio of 0.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Insurance - Multi line was holding an average PEG ratio of 1.01 at yesterday's closing price.
The Insurance - Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 76, putting it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.