Last Updated: 15 Oct 2024
Executive Summary
Cigna Corp (CI) is a leading managed healthcare and insurance company with a strong financial performance and a positive outlook. The company's revenue and earnings have grown steadily over the past year, and its profitability metrics are strong. Cigna has a solid balance sheet with ample liquidity and a manageable debt load. The stock is currently trading at a reasonable valuation compared to its peers and has a moderate beta, indicating moderate risk. Overall, Cigna is a well-positioned company with solid fundamentals and attractive investment potential.
Company Overview
Cigna Corp is an American multinational managed healthcare and insurance company headquartered in Bloomfield, Connecticut. The company provides medical, dental, disability, life, and accident insurance and related products and services to individuals and groups. Cigna has operations in the United States, Europe, Asia, and the Middle East.
Fundamental Analysis
Revenue: Cigna's revenue has grown steadily over the past year, increasing by 24.4% to $216.01 billion for the twelve months ending June 30, 2024. This growth was driven by strong demand for the company's healthcare and insurance products and services.
Earnings: Cigna's earnings per share (EPS) have also grown over the past year, increasing by 10.8% to $12.72 for the twelve months ending June 30, 2024. This growth was driven by the company's revenue growth and cost control efforts.
Profitability: Cigna's profitability metrics are strong. The company's profit margin is 1.72%, and its operating margin is 4.0%. These metrics are in line with or better than those of Cigna's peers.
Balance Sheet: Cigna has a solid balance sheet with ample liquidity and a manageable debt load. The company's current ratio is 1.23, and its debt-to-equity ratio is 0.45.
Valuation: Cigna's stock is currently trading at a reasonable valuation compared to its peers. The company's trailing price-to-earnings (P/E) ratio is 27.63, and its forward P/E ratio is 10.93. These ratios are in line with or below those of Cigna's peers.
Technical Analysis
Trend: Cigna's stock price has been trending higher over the past year. The stock is currently trading above its 50-day and 200-day moving averages, indicating a bullish trend.
Support and Resistance: The stock has support at $348.59, which is the 50-day moving average. The stock has resistance at $370.82, which is the 52-week high.
Momentum: The stock's momentum is positive. The relative strength index (RSI) is above 50, indicating that the stock is overbought.
Short Term Outlook
In the short term, Cigna's stock price is likely to continue to trend higher. The stock is currently trading above its key moving averages, and the momentum is positive. However, the stock is overbought, so a pullback could occur in the near term.
Long Term Outlook
In the long term, Cigna's stock price is likely to continue to grow. The company has a strong track record of revenue and earnings growth, and its profitability metrics are strong. The company's valuation is reasonable, and the stock has a moderate beta, indicating moderate risk.
Analyst Recommendations
Analysts are generally positive on Cigna's stock. The consensus rating is "buy," and the average target price is $397.09. This target price implies an upside potential of 13.1% from the current price.
