Here's Why You Should Hold Cigna Stock in Your Portfolio for Now

The Cigna Group CI, a longstanding global health company, continues to offer a variety of health solutions and insurance products. It operates through two main divisions: Cigna Healthcare and Evernorth Health Services. The company’s shares have gained 14.7% in the year-to-date (YTD) period against the industry average of a 29.1% decline.Headquartered in Bloomfield, CT, Cigna holds a market capitalization of $84.7 billion. Cigna Healthcare provides a health benefits function, catering to customers and clients through its U.S. Commercial, U.S. Government and International Health businesses. Meanwhile, Evernorth Health Services operates as the pharmacy, care and benefits solutions provider. Its forward P/E of 8.72X is lower than the industry average of 13.87X.Courtesy of solid prospects, Cigna currently carries a Zacks Rank #3 (Hold) and Growth Score of A.Where Do Estimates for CI Stand?The Zacks Consensus Estimate for Cigna’s 2025 earnings is pegged at $29.68 per share, indicating an 8.6% year-over-year rise. In the past month, it has witnessed 10 upward estimate revisions against one in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $257 billion for 2025.It beat earnings estimates in three of the past four quarters and missed once.Cigna Group Price and EPS Surprise Cigna Group price-eps-surprise | Cigna Group QuoteCI’s Growth DriversCigna continues to drive growth through strategic acquisitions and partnerships. Its partnership with Centene and Virgin Pulse supports long-term growth. The company anticipates its adjusted operating income to be a minimum of $7.9 billion in 2025.Evernorth Health Services’ adjusted revenues increased 16% year over year to $53.7 billion in the first quarter of 2025. Its Cigna Healthcare segment grew 9% year over year in the first quarter. The company’s Specialty Pharmacy market continues to grow at a remarkable pace as new specialty drugs are introduced, existing medications are authorized for expanded indications and biosimilars become more prevalent.In the first quarter of 2025, the company bought back common shares worth $1.5 million. From the start of the year till May 1, it repurchased a total of 8.2 million shares for $2.6 billion. This highlights its shareholder value-boosting efforts.CI: Risks to WatchHowever, there are some factors that investors should keep a careful eye on.The company’s total benefits and expenses escalated over the last several years due to higher pharmacy and other service costs, medical costs and other benefit expenses. Total benefits and expenses witnessed a year-over-year increase of 9% in 2023, 4% in 2024 and 16% in the first quarter of 2025. The persistent escalation of expenses might weigh on its margin growth. In the first quarter of 2025, the medical cost ratio deteriorated 230 bps year over year to 82.2%.Cigna has been grappling with a significant debt level over the past several years. As of March 31, 2025, it had a long-term debt of $26.5 billion, significantly higher than the cash balance of $8.3 billion. This is likely to put pressure on the company’s interest expenses. Its net debt to capital is 33.1%, higher than the industry’s average of 22.5%.Key PicksSome better-ranked stocks in the Medical space are Clover Health Investments Corp CLOV, GeneDx Holdings Corp WGS and Integer Holdings Corporation ITGR, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Clover Health Investments’ current-year earnings of 11 cents per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Clover Health Investments beat earnings estimates in each of the trailing four quarters, with the average surprise being 114.6%. The consensus estimate for current-year revenues is pegged at $1.9 billion, suggesting 37.7% year-over-year growth.The Zacks Consensus Estimate for GeneDx Holdings’ current-year earnings of $1.09 per share has witnessed one upward revision in the past 60 days against no movement in the opposite direction. GeneDx Holdings beat earnings estimates in each of the trailing four quarters, with the average surprise being 145.8%. The consensus estimate for current-year revenues is pegged at $374.1 million, suggesting 22.5% year-over-year growth.The Zacks Consensus Estimate for Integer Holdings’ current-year earnings of $6.33 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Integer Holdings beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 2.8%. The consensus estimate for current-year revenues is pegged at $1.9 billion, suggesting 7.7% year-over-year growth.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 Cigna Group (CI): Free Stock Analysis Report Integer Holdings Corporation (ITGR): Free Stock Analysis Report Clover Health Investments, Corp. (CLOV): Free Stock Analysis Report GeneDx Holdings Corp. (WGS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks