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Headquartered in Bloomfield, Connecticut, The Cigna Group (CI) is a global health services company known for its comprehensive portfolio of health insurance, dental, disability, and life insurance products. With a market cap of $95.49 billion, Cigna is recognized as a trusted partner in providing health and wellness solutions to individuals, employers, and government entities worldwide, ensuring access to affordable and quality healthcare.
Shares of CI have significantly underperformed the broader market over the past year. The stock has gained 13.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 19.7%. In 2024, CI stock is up 9.6%, while the SPX has gained 12.1% on a YTD basis.
Narrowing the focus, CI outperformed compared to the iShares U.S. Healthcare Providers ETF (IHF). The exchange-traded fund has gained 5.7% over this period. Also, the stock's YTD gains are ahead of the exchange-traded fund's 4.9% returns over the same time frame.
Cigna Group released its Q2 earnings on Aug. 1, and the stock declined 4.6% on the reporting day. The company surpassed both revenues and earnings estimates. CI expects full-year earnings to be $28.40 per share, with revenue expected to be $235 billion.
For the current fiscal year, ending in December, analysts expect CI’s EPS to grow 13.5% to $28.48 on a diluted basis. The company's earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 23 analysts covering CI stock, the consensus rating is a “Strong Buy.” That’s based on 17 “Strong Buy” ratings, two “Moderate Buys,” and four “Holds.”
This configuration is more bullish than three months ago, with 15 analysts suggesting a “Strong Buy.”
On Aug. 7, Truist Financial analyst David S Macdonald reiterated a “Buy” rating on Cigna Group with a price target of $420, implying a potential upside of 28% from current levels.
The mean price target of $396.09 represents a 20.7% premium to CI’s current price levels. The Street-high price target of $435 suggests an upside potential of 32.6%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
