Compelling Reasons to Hold on to Cigna Stock for Now
The Cigna Group (NYSE: CI) continues to be aided by two solid growth platforms, acquisitions and a solid financial position. A solid 2024 guidance also acts as an additional tailwind for the stock.
Zacks Rank & Price Performance
Cigna carries a Zacks Rank #3 (Hold), at present.
The stock has gained 24% in the past year compared with the industry’s 8% growth. The Medical sector and the S&P 500 composite index have increased 4% and 23.2%, respectively, in the same time frame.
Image Source: Zacks Investment Research
Favorable Style Score
CI is well-poised for progress, as evidenced by its impressive VGM Score of A. Here, V stands for Value, G for Growth and M for Momentum, and the score is a weighted combination of all three factors.
Robust Growth Prospects
The Zacks Consensus Estimate for CI’s 2024 earnings is pegged at $28.47 per share, indicating an improvement of 13.5% from the year-earlier reading, while the same for revenues is $235.7 billion, implying a 20.7% increase from the prior-year actual.
The consensus mark for 2025 earnings is pegged at $31.97 per share, indicating 12.3% growth from the 2024 estimate. The same for revenues is $245.8 billion, which indicates a rise of 4.3% from the 2023 estimate.
Solid Surprise History
Cigna’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 3.29%.
Optimistic Outlook for 2024
This year, Cigna anticipates adjusted revenues to be a minimum of $235 billion, which indicates growth of at least 20.3% from the 2023 reported figure.
Adjusted …
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