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Based in Bloomfield, Connecticut, The Cigna Group (CI) is a global health services company committed to improving the health, well-being, and peace of mind of those it serves. With a market cap of $97.94 billion, Cigna is recognized for its extensive portfolio of insurance products and health services, which include medical, dental, disability, life, and accident insurance. The company is set to announce its fiscal Q2 earnings results before the market opens on Thursday, Aug. 1.
Ahead of the event, analysts expect CI to report a profit of $6.42 per share, up 4.7% from $6.13 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
Its adjusted earnings of $6.47 per share for the last quarter surpassed the consensus estimate by 4.9%. Strong growth in health services and medical segments drove the company's performance.
For fiscal 2024, analysts expect CI to report EPS of $28.47, up 13.5% from $25.09 in fiscal 2023.
CI stock is up 13.7% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 16.2% gains. However, it has outperformed the iShares U.S. Healthcare Providers ETF’s (IHF) 2.7% returns over the same time frame.
Cigna’s shares fell more than 2% on Jul. 5 due to overall weakness in healthcare stocks amid mixed market movements and investor sentiment influenced by weak labor market indicators and potential interest rate cuts.
CI's shares dropped roughly 3.6% on May 2 after its Q1 results revealed a net loss of $277 million. However, adjusted profits were higher than projected.
The consensus opinion on CI stock is bullish, with an overall “Strong Buy” rating. Out of 23 analysts covering the stock, 17 advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, and four recommend a “Hold.”
This configuration is more bullish than three months ago when the stock had 15 “Strong Buy” ratings. CI's average analyst price target is $394.73, indicating a potential upside of 15.9% from the current levels.
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.
