Here's Why Retaining Cigna Stock is a Smart Move for Investors Now

The Cigna Group CI continues to be aided by solid pharmacy revenues, a sound medical customer base, acquisitions and a robust financial position. A solid 2024 guidance acts as an additional tailwind for the company. CI’s Zacks Rank & Price PerformanceCigna carries a Zacks Rank #3 (Hold) at present. The stock has gained 17.1% in the past year compared with the industry’s 6.9% growth. Image Source: Zacks Investment Research Cigna’s Favorable Style ScoreCI is well-poised for progress, as evidenced by its impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum, and the score is a weighted combination of all three factors.CI’s Robust Growth ProspectsThe Zacks Consensus Estimate for CI’s 2024 earnings is pegged at $28.50 per share, indicating an improvement of 13.6% from the year-earlier reading. The estimate for revenues is $243.8 billion, implying a 24.8% increase from the prior-year actual. The consensus mark for 2025 earnings is pegged at $31.59 per share, indicating 10.9% growth from the 2024 estimate. The estimate for revenues is $249.8 billion, which indicates a rise of 2.5% from the 2024 estimate.Solid Surprise History of CignaCigna’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 4.42%.CI's Optimistic Outlook for 2024Cigna anticipates adjusted revenues for 2024 to be a minimum of $235 billion, which indicates growth of at least 20.3% from the 2023 figure. Adjusted earnings per share are predicted to be a minimum of $28.40, which implies minimum growth of 13.2% from the 2023 figure.Cigna’s Growth DriversCigna’s performance is underpinned by two robust growth platforms- Evernorth and Cigna Healthcare- which keep management optimistic about achieving average annual adjusted earnings per share growth within the band of 10-14% in the long term. The Evernorth platform fuels its growth through a comprehensive range of specialty pharmacy services, thereby significantly boosting pharmacy revenues for the parent company. In the first nine months of 2024, pharmacy revenues surged 35% year over year. Simultaneously, the Cigna Healthcare unit benefits from an extensive customer base within its U.S. Healthcare operations. The unit is projected to deliver long-term average annual adjusted earnings per share growth between 7% and 10%. An increasing customer base translates to higher premium income, the largest revenue source for health insurers. Additionally, an aging U.S. population is expected to sustain the strong demand for its Medicare plans.Beyond premium growth, Cigna Healthcare gains from continuous product innovation, along with new collaborations and extended contracts with leading healthcare systems.Cigna also employs strategic acquisitions to broaden its capabilities, penetrate new regions and bolster its position in existing markets. To concentrate on high-growth areas, the company has divested its non-health-related units.Cigna’s sound cash reserves and cash generation capabilities provide the flexibility to invest in business expansion while maintaining shareholder returns through share repurchases and dividend payments. Over the next five years, management projects operating cash flows of approximately $60 billion. The company approved a 14% increase in its quarterly dividend this February. Its dividend yield of 1.7% remains higher than the industry average of 1.4%.Stocks to ConsiderSome better-ranked stocks in the Medical space are Tenet Healthcare Corporation THC, ANI Pharmaceuticals, Inc. ANIP and Intuitive Surgical, Inc. ISRG. Tenet Healthcare sports a Zacks Rank #1 (Strong Buy), and ANI Pharmaceuticals and Intuitive Surgical carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Tenet Healthcare’s earnings surpassed estimates in each of the last four quarters, the average surprise being 59.92%. The Zacks Consensus Estimate for THC’s 2024 earnings indicates a 63% rise while the same for revenues implies an improvement of 1.1% from the respective prior-year tallies. The consensus mark for THC’s earnings has moved 6.8% north in the past 30 days.The bottom line of ANI Pharmaceuticals outpaced estimates in each of the trailing four quarters, the average surprise being 20.27%. The Zacks Consensus Estimate for ANIP’s 2024 earnings indicates a 6.6% rise while the same for revenues implies an improvement of 23% from the respective prior-year tallies. The consensus mark for ANIP’s earnings has moved 6.1% north in the past 30 days.Intuitive Surgical’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 10.96%. The Zacks Consensus Estimate for ISRG’s 2024 earnings indicates a 20.5% rise while the same for revenues implies an improvement of 14.1% from the respective prior-year tallies. The consensus mark for ISRG’s earnings has moved up 3.1% in the past 60 days. Shares of Tenet Healthcare, ANI Pharmaceuticals and Intuitive Surgical have gained 114.7%, 15.1% and 71.4%, respectively, in the past year.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report Cigna Group (CI): Free Stock Analysis Report Tenet Healthcare Corporation (THC): Free Stock Analysis Report ANI Pharmaceuticals, Inc. (ANIP): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks