Cigna (CI) closed at $284.64 in the latest trading session, marking a -0.25% move from the prior day. This move lagged the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.23%.
Prior to today's trading, shares of the health insurer had gained 1.45% over the past month. This has outpaced the Medical sector's loss of 2.99% and lagged the S&P 500's gain of 2.08% in that time.
Investors will be hoping for strength from Cigna as it approaches its next earnings release. In that report, analysts expect Cigna to post earnings of $6.66 per share. This would mark year-over-year growth of 10.26%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $48.16 billion, up 6.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $24.80 per share and revenue of $191.63 billion. These totals would mark changes of +6.57% and +6.09%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Cigna. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.01% higher. Cigna is currently a Zacks Rank #3 (Hold).
Investors should also note Cigna's current valuation metrics, including its Forward P/E ratio of 11.5. This valuation marks a discount compared to its industry's average Forward P/E of 15.82.
Investors should also note that CI has a PEG ratio of 1.03 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CI's industry had an average PEG ratio of 1.08 as of yesterday's close.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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