The Cigna Group (CI)
Health insurance giant Cigna has seen its stock fall by nearly 20% this year.
But that also means it’s currently trading at a price-earnings ratio of under 12x – compared to over 22x for its larger rival, UnitedHealth Group. Its price-to-sales ratio is only 0.44x – compared to 1.42x for UnitedHealth Group.
Yet Cigna’s earnings-per share have grown by 13% yearly for the past four years. The company is targeting yearly earnings growth of 10% to 13% – showing that it’s confident it can maintain its growth.
Cigna also uses 20% of its operating cash flow for dividends, and the rest for share purchases and strategic M&A – resulting in a modest, though steady dividend.
But essentially, the case for Cigna is such – the need for healthcare insurance won’t be going anywhere in a recession. And Cigna is a solid stock that is now trading at what looks to be highly undervalued territory.
Therefore, now may be the time to strike and add this stock to your portfolio.
