Cigna trades at a significant discount to the S&P 500, offering a higher yield and faster dividend growth, making it attractive for total return investors. CI's robust earnings growth is fueled by its Evernorth and Healthcare segments, with strong results and promising exposure to the booming GLP-1 drug market. Management targets 10-14% annual EPS growth, supported by aggressive share buybacks and a safe, growing dividend nearly double the S&P 500 yield.
CI to cover RhinAer for chronic rhinitis starting Sept. 15, expanding access to a minimally invasive, office-based treatment.
Rising premiums, ongoing technological innovation and the growing demand for Medicare plans are anticipated to propel the performance of the Zacks Medical-HMO industry players. CI, HUM, CNC and MOH are poised to benefit from favorable industry prospects.
Cigna has transformed into a diversified healthcare platform, focusing on high-margin corporate insurance and pharmacy services while divesting non-core assets. Despite margin pressures, Cigna's service-driven model delivers strong revenue growth, stable cash flows, and resilient EPS, supported by robust buybacks and dividend increases. My DCF analysis shows Cigna is undervalued, trading at a deep discount to sector peers, with an 11%+ upside and limited downside risk even in conservative scenarios.
I believe the odds favor long-term market gains. Analysts' optimism supports my view that overlooked areas offer the best opportunities now. That's why I'm focusing on two dividend stocks with rising income and resilience, one in energy, and one in healthcare, built for long-term success. Forget the headlines. Quality, time, and patience build wealth. I'm doubling down on proven businesses, no matter what short-term noise brings.
CI gains 14.7% YTD as Evernorth and Cigna Healthcare drive growth, but rising expenses and debt pose challenges.
CVS rallies on turnaround momentum and EPS growth, while CI is a defensive play with stable returns and a focused healthcare strategy.
Cigna's Evernorth unit said a new coverage deal with Eli Lilly and Novo Nordisk will bring lower copays for insured patients The company hopes the new discount, which caps monthly out-of-pocket costs at $200 for Wegovy and Zepbound, will convince more employers to offer coverage of the drugs.
The market reaction came as Trump signed a wide-ranging executive order aimed at slashing prescription drug prices in the US.
CI increases adjusted earnings guidance for 2025 to $29.60 per share from the previous estimate of $29.50.
While the top- and bottom-line numbers for Cigna (CI) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Cigna (CI) came out with quarterly earnings of $6.74 per share, beating the Zacks Consensus Estimate of $6.39 per share. This compares to earnings of $6.47 per share a year ago.