Long Trade Idea
Enter your long position between $277.10 (yesterday’s intra-day low) and $281.49 (yesterday’s intra-day high).
Market Index Analysis
- The Cigna Group (CI) is a member of the S&P 500 Index.
- This index trades in a bearish chart pattern with decreasing bullish volumes.
- The Bull Bear Power Indicator of the S&P 500 is bullish but shows a descending trendline.
Market Sentiment Analysis
Equity futures are mixed this morning as investors gear up for the earnings releases of 90 of the S&P 500 companies this week. The two-day FOMC meeting will start today, but markets expect no change in the benchmark interest rate tomorrow. A partial government shutdown is looming as Democrats will not back the current funding bill if it includes funding for the DHS amid the latest violence in Minnesota. Markets are also digesting more news on the tariff front after President Trump noted an increase in South Korean tariffs from 15% to 25%.
The Cigna Group Fundamental Analysis
The Cigna Group is a healthcare and insurance company providing medical, dental, disability, life, and accident insurance. It focuses on offering its insurance products through employers and other groups, and CI ranks among the largest US-based companies by revenue.
So, why am I bullish on CI at current levels?
While the FTC Settlement pause for Express Scripts dominates the headlines, CI also benefits from its Evernorth health services division and Pharmacy Benefit Manager (PBM) platform, which delivers predictable, fee-based revenue. I am also bullish on its focus on profitability over membership volume, which supports long-term earnings stability. The Cigna Group generates massive free cash flow exceeding $10 billion annually, which funds aggressive share buybacks, and analysts continuously upgrade the price target.
Metric | Value | Verdict |
P/E Ratio | 12.41 | Bullish |
P/B Ratio | 1.79 | Bullish |
PEG Ratio | 0.56 | Bullish |
Current Ratio | 0.83 | Bearish |
ROIC-WACC Ratio | Positive | Bullish |
The price-to-earnings (P/E) ratio of 12.41 makes CI an inexpensive stock. By comparison, the P/E ratio for the S&P 500 is 31.39.
The average analyst price target for CI is $326.92. This suggests good upside potential with reasonable downside risks.
The Cigna Group Technical Analysis
Today’s CI Signal
- The CI D1 chart shows price action inside a bullish price channel.
- It also shows price action between its ascending 0.0% and 38.2% Fibonacci Retracement Fan levels.
- The Bull Bear Power Indicator is bullish with an ascending trendline.
- The average bullish trading volumes are higher than the average bearish trading volumes.
- CI is mirroring the S&P 500 Index, a bullish confirmation.
My CI Long Stock Trade
- CI Entry Level: Between $277.10 and $281.49
- CI Take Profit: Between $326.92 and $367.22
- CI Stop Loss: Between $256.89 and $263.79
- Risk/Reward Ratio: 2.47
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