Yahoo Finance Here's Why Cigna (CI) is a Strong Value Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Cigna (CI)
Headquartered in Bloomfield, CT and formed in 1982, Cigna Corporation has rebranded itself as The Cigna Group. The company was formed as a result of a merger between Connecticut General Life Insurance Company and Insurance Company of North America. Cigna completed its combination with Express Scripts Holding Company by 2018-end. Shares of the new combined company trade on the NYSE under the stock ticker symbol “CI.”
CI is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of B. Shares are currently trading at a forward P/E of 12.5X for the current fiscal year compared to the Medical - HMOs industry's P/E of 15.9X. Additionally, CI has a PEG Ratio of 1.1 and a Price/Cash Flow ratio of 9.9X. Value investors should also note CI's Price/Sales ratio of 0.5X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.03 to $28.35 per share. CI has an average earnings surprise of 2.9%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding CI to their portfolios.
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Cigna Group (CI) : Free Stock Analysis Report
