Cigna (CI) closed the most recent trading day at $181.88, moving -1.41% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.86%. Meanwhile, the Dow lost 2.3%, and the Nasdaq, a tech-heavy index, lost 1.64%.
Coming into today, shares of the health insurer had gained 14.68% in the past month. In that same time, the Finance sector gained 8.46%, while the S&P 500 gained 7.63%.
Investors will be hoping for strength from CI as it approaches its next earnings release, which is expected to be November 5, 2020. In that report, analysts expect CI to post earnings of $4.24 per share. This would mark a year-over-year decline of 6.61%. Meanwhile, our latest consensus estimate is calling for revenue of $39.14 billion, up 9.22% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $18.51 per share and revenue of $155.81 billion, which would represent changes of +8.56% and +11.16%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for CI. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CI is currently a Zacks Rank #2 (Buy).
Investors should also note CI's current valuation metrics, including its Forward P/E ratio of 9.97. This represents a discount compared to its industry's average Forward P/E of 10.46.
Also, we should mention that CI has a PEG ratio of 0.9. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Insurance - Multi line was holding an average PEG ratio of 1.32 at yesterday's closing price.
The Insurance - Multi line industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 122, which puts it in the top 49% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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