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Sep 26, 2019
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Cigna (CI, $150.56) is "compelling" , says Citigroup analysts

Cigna (CI, $150.56) is "compelling" , says Citigroup analysts

According to a group of Citigroup analysts, Cigna is "one of the most compelling stocks and stories" they have seen across 20 years on the sell side.

The group of analysts feels that the health services company has the right goals coupled with a strong historical performance, a solid strategy, improved positioning, and a balanced growth outlook – while having a low valuation.

Analyst Ralph Giacobbe mentioned that Cigna is trading at a 27% discount to peers and 49% discount to the market.

Citigroup gave Cigna shares a “buy” rating. It set a $203 target price on the shares, which would be 11 times the 2020 estimate. The target indicates upside of 31% from Wednesday's close price.

However, Giacobbe did mention that the outlook is not without a few risks, such as  a potential unexpected increase in healthcare-costs, heated competition from peers, the risks inherent in integrating Express Scripts, and general headline risks from the focus on drug pricing and the evolving pharmacy-benefit-manager model.

 

Related Ticker: CI

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


CI sees its 50-day moving average cross bullishly above its 200-day moving average

The 50-day moving average for CI moved above the 200-day moving average on October 16, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

The Momentum Indicator moved above the 0 level on November 10, 2026. You may want to consider a long position or call options on CI as a result. In 66 of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 70%.

CI moved above its 50-day moving average on October 07, 2026 date and that indicates a change from a downward trend to an upward trend.

The 10-day moving average for CI crossed bullishly above the 50-day moving average on October 14, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 75%.

Following a +3.25% 3-day Advance, the price is estimated to grow further. Considering data from situations where CI advanced for three days, in 224 of 355 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.

The Aroon Indicator entered an Uptrend today. In 169 of 276 cases where CI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 61%.

Bearish Trend Analysis

The 10-day RSI Indicator for CI moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In 24 of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at 67%.

The Moving Average Convergence Divergence Histogram (MACD) for CI turned negative on October 29, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In 28 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 55%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where CI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 56%.

CI broke above its upper Bollinger Band on October 14, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

The Tickeron PE Growth Rating for this company is 37 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 41 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock slightly better than average.

The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating fairly steady price growth. CI’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of 52 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.820) is normal, around the industry mean (3.520). P/E Ratio (12.077) is within average values for comparable stocks, (126.353). Projected Growth (PEG Ratio) (0.739) is also within normal values, averaging (0.786). CI has a moderately high Dividend Yield (0.021) as compared to the industry average of (0.009). P/S Ratio (0.264) is also within normal values, averaging (0.569).

The Tickeron SMR rating for this company is 55 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

Notable companies

The most notable companies in this group are Unitedhealth Group (NYSE:UNH), CVS HEALTH Corp (NYSE:CVS), Elevance Health (NYSE:ELV), Cigna Group (The) (NYSE:CI), Humana (NYSE:HUM), Centene Corp (NYSE:CNC).

Industry description

Managed healthcare industry focuses on providing health/medical and disability insurance plans, generally intended to reduce the cost of for-profit health care. The insurance products might be provided through employer-paid (fully or partly) insurance and benefit programs, or through Medicare/Medicaid. Some of the largest providers of managed health care include Aetna, Humana Inc., and Cigna, and UnitedHealthcare.

Market Cap

The average market capitalization across the Managed Health Care Industry is 67.69B. The market cap for tickers in the group ranges from 335.99K to 353.79B. UNH holds the highest valuation in this group at 353.79B. The lowest valued company is IHGP at 335.99K.

High and low price notable news

The average weekly price growth across all stocks in the Managed Health Care Industry was 1%. For the same Industry, the average monthly price growth was 5%, and the average quarterly price growth was 17%. PGNY experienced the highest price growth at 25%, while CVS experienced the biggest fall at -3%.

Volume

The average weekly volume growth across all stocks in the Managed Health Care Industry was -14%. For the same stocks of the Industry, the average monthly volume growth was -34% and the average quarterly volume growth was -35%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 61
P/E Growth Rating: 41
Price Growth Rating: 42
SMR Rating: 72
Profit Risk Rating: 82
Seasonality Score: -1 (-100 ... +100)
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General Information

a provider of health insurance services

Industry ManagedHealthCare

Industry
Managed Health Care
Address
900 Cottage Grove Road
Phone
+1 860 226-6000
Employees
67700
Web
https://www.thecignagroup.com
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