Technical Analysis: Based on recent price action, CI has shown a bearish trend after dropping significantly due to Trump's executive order on healthcare price transparency. The stock fell 2.27% to $306.77 on February 26th.
Fundamental Analysis: The Cigna Group received a high rating of 85% from Validea's Shareholder Yield Investor model, indicating strong fundamentals in the Healthcare Facilities industry. The company has been focusing on returning cash to shareholders through dividends, buybacks, and debt paydown.
News Impact: A major bearish catalyst emerged when President Trump signed an executive order on February 25th directing federal agencies to enforce and expand the 2019 rule requiring hospitals and insurers to publicly disclose actual medical service costs. This raised concerns about potential revenue impacts for healthcare companies.
Price Prediction for Next Week (March 4-8):
Bearish Factors:
Support Levels:
Resistance Levels:
Forecast: Given the significant regulatory headwinds and sector-wide pressure, CI is likely to continue its downward trend next week. Price target: $285-295 range.
Recommendation: SELL
The price of CI is predicted to go up -17.64%, based on the high correlation periods with JBL. The similarity of these two price pattern on the periods is 92.48%.
CI
JBL
Combining with Express Scripts gave Cigna more tools to help clients control their healthcare costs, and we see significant cross-selling opportunities across their respective books of business.
With its strong medical cost trend history and goal to reduce that trend to the low-single-digits, Cigna should be able to benefit from continued enrollment gains in the more profitable commercial segment.
Cigna's organic earnings growth prospects look solid both with and without capital-allocation activities, such as share repurchases.
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