Cigna Corp (CI): Today's Featured Health Care 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 Care sector lower today making it today's featured Health Care laggard. The sector as a whole closed the day down 0.4%. By the end of trading, Cigna fell $0.98 (-1.4%) to $66.92 on light volume. Throughout the day, 1,355,620 shares of Cigna exchanged hands as compared to its average daily volume of 1,922,200 shares. The stock ranged in price between $66.81-$67.85 after having opened the day at $67.78 as compared to the previous trading day's close of $67.90. Other companies within the Health Care sector that declined today were: Biota Pharmaceuticals ( BOTA), down 65.6%, XenoPort ( XNPT), down 15.3%, ProPhase Labs ( PRPH), down 9.7% and Durect Corporation ( DRRX), down 9.1%.
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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 $19.2 billion and is part of the health services industry. The company has a P/E ratio of 14.9, below the S&P 500 P/E ratio of 17.7. Shares are up 27.0% year to date as of the close of trading on Friday. Currently there are 8 analysts that rate Cigna a buy, no analysts rate it a sell, and 6 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 and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Peregrine Pharmaceuticals ( PPHM), down 18.8%, Oramed Pharmaceuticals ( ORMP), down 15.0%, Discovery Laboratories ( DSCO), down 12.7% and Lakeland Industries ( LAKE), down 12.1% , were all gainers within the health care sector with Illumina ( ILMN) being today's featured health care sector leader.

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

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