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 0.5%. By the end of trading, Cigna fell $0.94 (-1.4%) to $67.13 on average volume. Throughout the day, 2,473,777 shares of Cigna exchanged hands as compared to its average daily volume of 1,989,400 shares. The stock ranged in price between $66.92-$68.49 after having opened the day at $68.43 as compared to the previous trading day's close of $68.07. Other companies within the Health Services industry that declined today were: Chemed Corporation ( CHE), down 16.9%, Thoratec Corporation ( THOR), down 10.8%, SunLink Health Systems ( SSY), down 10.0% and IMRIS ( IMRS), down 8.5%.
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Cigna Corporation, a health services organization, provides insurance and related products and services in the United States and internationally. Cigna has a market cap of $18.7 billion and is part of the health care sector. The company has a P/E ratio of 11.7, below the S&P 500 P/E ratio of 17.7. Shares are up 27.3% year to date as of the close of trading on Thursday. Currently there are 9 analysts that rate Cigna a buy, no analysts rate it a sell, and 5 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, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Spherix ( SPEX), down 18.1%, Genomic Health ( GHDX), down 10.2%, BG Medicine ( BGMD), down 9.8% and USMD Holdings ( USMD), down 8.7% , were all gainers within the health services industry with Intuitive Surgical ( ISRG) 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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