Cigna (CI) Is Water-Logged And Getting Wetter Today
Trade-Ideas LLC identified
(
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Cigna as such a stock due to the following factors:
- CI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $107.0 million.
- CI has traded 63,616 shares today.
- CI traded in a range 265.6% of the normal price range with a price range of $6.72.
- CI traded below its daily resistance level (quality: 27 days, meaning that the stock is crossing a resistance level set by the last 27 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on CI:
Cigna Corporation, a health services organization, provides insurance and related products and services in the United States and internationally. It operates through three segments: Global Health Care, Global Supplemental Benefits, and Group Disability and Life. The stock currently has a dividend yield of 0%. CI has a PE ratio of 17. Currently there are 5 analysts that rate Cigna a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for Cigna has been 1.2 million shares per day over the past 30 days. Cigna has a market cap of $35.2 billion and is part of the health care sector and health services industry. The stock has a beta of 0.28 and a short float of 1% with 3.19 days to cover. Shares are down 7.5% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Cigna as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.0%. Since the same quarter one year prior, revenues slightly increased by 6.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels.
- Net operating cash flow has significantly increased by 91.18% to $998.00 million when compared to the same quarter last year. In addition, CIGNA CORP has also vastly surpassed the industry average cash flow growth rate of -18.97%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- CIGNA CORP's earnings per share declined by 7.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CIGNA CORP increased its bottom line by earning $8.04 versus $7.82 in the prior year. This year, the market expects an improvement in earnings ($9.16 versus $8.04).
- You can view the full Cigna Ratings Report.
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