Yahoo Finance Here's How Much a $1000 Investment in Cigna Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Cigna (CI) ten years ago? It may not have been easy to hold on to CI for all that time, but if you did, how much would your investment be worth today?
Cigna's Business In-Depth
With that in mind, let's take a look at Cigna's main business drivers.
Headquartered in Bloomfield, CT and formed in 1982, Cigna Corporation has rebranded itself as The Cigna Group. The company was formed as a result of a merger between Connecticut General Life Insurance Company and Insurance Company of North America. Cigna completed its combination with Express Scripts Holding Company by 2018-end. Shares of the new combined company trade on the NYSE under the stock ticker symbol “CI.”
The global health company has also announced the rebranding of its segments, which are Cigna Healthcare and Evernorth Health Services.
Cigna Healthcare will take care of the health benefits function, catering to customers and clients through its U.S. Commercial, U.S. Government and International Health businesses. Meanwhile, the newly named Evernorth Health Services will operate as the pharmacy, care and benefits solutions provider.
In 2023 end, the company’s reportable segments were as follows:
Evernorth Health Services (constitutes 75% of adjusted total segment revenues in 2023) includes a broad range of coordinated and point solution health services, including pharmacy services, benefits management, care solutions and data and analytics, which are provided to health plans, employers, government organizations, and health care providers.
Cigna Healthcare (25%): The segment comprises Cigna's U.S. Commercial, U.S. Government, and International Health businesses that provide comprehensive medical and coordinated solutions to clients and customers.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Cigna a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in March 2014 would be worth $4,688.86, or a gain of 368.89%, as of March 28, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 183.85% and gold's return of 60.67% over the same time frame.
Analysts are forecasting more upside for CI too. Cigna’s revenues have been increasing consistently for the past few years, driven by buyouts, superior operating performance and a high-quality product portfolio. It expects adjusted revenues to jump 20% in 2024. Value-enhancing divestitures will help it to focus on core growth areas. High membership on the back of a diversified portfolio, wide agent network and superior service are major positives. For 2024, it expects adjusted EPS to be at least $28.25, up 12.6% YoY. It has been resorting to prudent capital deployment moves through share repurchases and dividend payments. However, high leverage can affect its financial flexibility. Rising operating costs due to higher pharmacy and other service costs are a concern. Its low ROA indicates less efficiency in generating profits from its assets. As such, the stock warrants a cautious stance. Shares have gained 8.42% over the past four weeks and there have been 11 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Cigna Group (CI) : Free Stock Analysis Report
