Rising Medical Costs to Affect Cigna Q4 Earnings? Check Estimates Here
CI's fourth-quarter results are likely to have benefited from growing premiums and pharmacy revenues.
Cigna: Buy The Drop On This Undervalued Growth Stock
Cigna's current valuation presents a compelling opportunity, trading at a forward PE of 9.9, significantly below its historical average of 12.0x. The company carries diversified revenue streams and consistent earnings growth, with Healthcare and Evernorth divisions driving strong performance and a 13% EPS CAGR over 10 years. Management targets 10-14% long-term annual EPS growth, supported by increased biosimilar adoption, behavioral health services growth, and aggressive share buybacks.
Raymond James Analysts' Best Picks Could Explode Again in 2025: 4 Red-Hot Dividend Stocks
As the calendar turns to 2025, the leading Wall Street firms are releasing their top stock picks for the new year.
Market Madness: 3 Blue-Chip Dividend Steals You Can't Ignore
The U.S. economy added 256,000 jobs last month, far exceeding expectations, which suggests a strong economy but reduces the likelihood of further Fed rate cuts. Rising long-term rates increase borrowing costs and competition for stocks, negatively impacting rate-sensitive sectors like utilities, real estate, and consumer staples. Despite a challenging market environment, equities still offer value, particularly in high-quality blue-chip stocks.
High-cost weight loss drugs are sending employers to nutrition counseling in a boost for startups
Employers are increasingly requiring workers on GLP-1 medications to enroll in nutrition and lifestyle coaching programs. Startup Virta Health saw 60% revenue growth last year, topping $100 million, driven by demand for its employer weight loss management program.
Cigna Stock Plunges 18.7% in 3 Months: Should You Buy, Hold or Sell?
Despite market challenges, CI's strong fundamentals and growth drivers make it worth holding for long-term investors looking to capitalize on future recovery opportunities.
How Cigna Remains at the Top of the Health Insurance Food Chain
The health insurance industry has received a lot of backlash over its managed care practices that bog down providers with pre-authorizations and rampant medical claim denials. The rise in medical benefits ratios (MBRs) driven by Medicare Advantage plans have squeezed margins for major health insurance providers like Humana Inc. NYSE: HUM, UnitedHealth Group Inc. NYSE: UNH, and CVS Health Co. NYSE: CVS.
Here's Why Cigna (CI) is a Strong Value Stock
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Former Cigna VP: Health insurance industry has erect barriers making it more difficult to seek care
Wendell Potter, Center for Health and Democracy president and former Cigna vice president, joins 'Squawk Box' to discuss public anger at the health care industry, problems with health insurance, and more.
Cigna (CI) Soars 6.3%: Is Further Upside Left in the Stock?
Cigna (CI) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
Barclays fact-checked Trump comments on pharmacy benefit managers
Barclays analyst Andrew Mok said that while the existential risk to pharmacy benefit managers is low, President-elect Trump's comments yesterday point to additional headline risk and greater support for legislation. Trump said he planned to "knock out the middleman" which is the latest in a string of negative headlines that drove PBM-owned stocks Cigna (CI), CVS Health (CVS) and UnitedHealth (UNH) lower, the analyst told investors yesterday in a research note. The firm believes PBMs "are the only market-based check on drug pricing that exists today," and eliminating the "middleman" would effectively put the government in charge of negotiating drug prices for both private and government-sponsored health plans. Trump, said, "The horrible middleman that makes more money frankly than the drug companies and they don't do anything except they're a middleman, we're going to knock out the middleman." Barclays fact-checked this and notes the average EBIT margins of the top six U.S. pharmaceutical companies is 37%, nearly 8-10 times PBM margins, which are closer to 3%-5%. Four of the six largest drug manufacturers, Johnson & Johnson (JNJ), AbbVie (ABBV), Merck (MRK), Pfizer (PFE) are estimated to earn more operating profits this year than the "Big Three" PBMs combined, according to Barclays. CVS Health -2.11 (-4.53%) Cigna -8.06 (-2.95%) UnitedHealth -19.06 (-3.83%) Johnson & Johnson +1.65 (+1.15%) AbbVie +2.88 (+1.68%) Merck +0.07 (+0.07%) Pfizer +1.115 (+4.41%)
Cigna: I'm Loading Up On This Dividend Growth Stock Now
Cigna's strong fundamentals, including consistent revenue and EPS growth, a solid balance sheet, and undervalued stock price, support a buy rating. The company's Q3 results showed a 29.9% revenue increase and a 10.9% rise in non-GAAP EPS, driven by customer growth and price hikes. Cigna's dividend yield and growth potential are robust, with a low payout ratio and projected double-digit annual EPS growth supporting future dividend increases.
