Cigna Corp (CI): Today's Featured Health Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Cigna ( CI) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Cigna fell 63 cents (-1.2%) to $53.86 on light volume. Throughout the day, 571,963 shares of Cigna exchanged hands as compared to its average daily volume of 2.3 million shares. The stock ranged in price between $53.75-$54.52 after having opened the day at $54.43 as compared to the previous trading day's close of $54.49. Other companies within the Health Services industry that declined today were: CAS Medical Systems ( CASM), down 6.4%, Navidea Biopharmaceuticals ( NAVB), down 5.5%, Solta Medical ( SLTM), down 5.1%, and CombiMatrix Corporation ( CBMX), down 4.4%.
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CIGNA Corporation, a health services organization, through its subsidiaries, provides insurance and related products and services in the United States and internationally. Cigna has a market cap of $15.37 billion and is part of the health care sector. The company has a P/E ratio of 9.9, below the S&P 500 P/E ratio of 17.7. Shares are up 28% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Cigna a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Cigna as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the positive front, Dynatronics Corporation ( DYNT), up 43.8%, IsoRay ( ISR), up 28.8%, Edap TMS ( EDAP), up 18.3%, and Response Genetics ( RGDX), up 8.3%, were all gainers within the health services industry with Tenet Healthcare ( THC) being today's featured health services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the health services industry could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health services industry could consider ProShares Ultra Short Health Care ( RXD).

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