Cigna (CI) closed at $288.47 in the latest trading session, marking a -1.99% move from the prior day. This move lagged the S&P 500's daily loss of 1.47%. Meanwhile, the Dow lost 1.14%, and the Nasdaq, a tech-heavy index, lost 1.57%.
Prior to today's trading, shares of the health insurer had gained 4.54% over the past month. This has outpaced the Medical sector's loss of 2.14% and the S&P 500's loss of 1.43% in that time.
Wall Street will be looking for positivity from Cigna as it approaches its next earnings report date. The company is expected to report EPS of $6.66, up 10.26% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $48.16 billion, up 6.16% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $24.80 per share and revenue of $191.63 billion, which would represent changes of +6.57% and +6.09%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Cigna. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. Cigna is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Cigna is holding a Forward P/E ratio of 11.87. This valuation marks a discount compared to its industry's average Forward P/E of 16.42.
It is also worth noting that CI currently has a PEG ratio of 1.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - HMOs was holding an average PEG ratio of 1.11 at yesterday's closing price.
The Medical - HMOs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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