CI Should I Buy
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Cigna Group (CI) is not a strong buy at this moment for a beginner investor with a long-term strategy. The stock shows mixed signals with limited upside potential in the short term, and recent financial performance, as well as political and sector-specific headwinds, suggest caution. Holding or exploring other opportunities may be more prudent.
The MACD is above 0 and positively contracting, indicating a mild bullish trend. RSI is neutral at 54.85, and moving averages are converging, showing no strong directional momentum. The stock is near its pivot point of 283.213 with resistance at 294.424 and support at 272.001.
Analysts have raised price targets recently, with UBS increasing its target to $375, reflecting optimism about the company's clearing overhangs and new PBM model. The partnership with Direct Relief for disaster medication deployment is a positive corporate social responsibility initiative.
The stock has faced sector-wide headwinds due to CMS's 2027 Medicare Advantage rate announcement, which is below expectations. Mark Cuban's endorsement of the 'Break Up Big Medicine Act' could create regulatory risks for the healthcare insurance sector. Congress members have shown a cautious stance with 4 recent sale transactions and no purchases.
In Q4 2025, revenue grew by 10.39% YoY to $72.47B, but net income dropped by 13.34% YoY to $1.23B. EPS also declined by 9.55% YoY to 4.64, and gross margin dropped significantly. This indicates top-line growth but bottom-line challenges.
Analysts maintain a generally positive outlook with multiple Buy ratings and raised price targets. However, some analysts note sector-specific risks and political influences that could weigh on performance in the near term.
