/Cigna%20Group%20HQ%20phone%20-by%20JHVEPhoto%20via%20Shutterstock.jpg)
The Cigna Group (CI), based in Bloomfield, Connecticut, provides insurance and related products and services in the U.S. and internationally. With a market cap of $103.8 billion, Cigna operates through Cigna Healthcare, Evernorth, and Other Operations segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Cigna Group fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the healthcare plans industry. It employs over 70,000 people and maintains sales capabilities in over 30 countries and jurisdictions.
Cigna hit its 52-week high of $370.64 in yesterday’s trading session before slightly pulling back. CI stock has gained 8.8% during the past three months, outperforming the Nasdaq Composite’s ($NASX) 1.4% gains during the same time frame.
Over the longer term, Cigna looks even more appealing. CI gained 32.5% over the past 52 weeks and 22.4% in 2024, outperforming NASX’s 21.8% gains over the past year and 13.8% returns on a YTD basis.
To confirm the bullish trend, CI stock has been trading above its 50-day and 200-day moving averages since mid-December 2023, with some fluctuations lately.
Shares of Cigna rose 1.4% in the subsequent session following the release of its Q2 earnings on Aug. 1. The company reported an impressive 24.6% annual growth in total revenues, amounting to $60.5 billion, driven by a massive 32.8% growth in pharmacy revenues to $45.1 billion. Its EPS of $6.72 surpassed the consensus estimates by 4.7%. Moreover, Cigna gave a strong adjusted revenue guidance of at least $235 billion for fiscal 2024.
Cigna’s competitor, CVS Health Corporation (CVS), has substantially underperformed CI. CVS declined 9.7% over the past 52 weeks and 24.9% in 2024.
Among the 23 analysts covering the CI stock, the consensus rating is a “Strong Buy.” The mean price target of $395.10 represents a potential upside of 7.8% from current price levels.
On the date of publication, Aditya Sarawgi 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.
