Trade-Ideas: Cigna (CI) Is Today's Unusual Social Activity Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Cigna ( CI) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Cigna as such a stock due to the following factors:

  • CI has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 1.56 mentions/day.
  • CI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $182.5 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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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. The stock currently has a dividend yield of 0.1%. CI has a PE ratio of 15.8. Currently there are 7 analysts that rate Cigna a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Cigna has been 1.5 million shares per day over the past 30 days. Cigna has a market cap of $22.1 billion and is part of the health care sector and health services industry. The stock has a beta of 0.69 and a short float of 1.1% with 1.25 days to cover. Shares are up 46.5% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

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

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 34.35% and other important driving factors, this stock has surged by 45.93% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CIGNA CORP has improved earnings per share by 34.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CIGNA CORP increased its bottom line by earning $5.61 versus $4.59 in the prior year. This year, the market expects an improvement in earnings ($6.65 versus $5.61).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Health Care Providers & Services industry average. The net income increased by 32.9% when compared to the same quarter one year prior, rising from $380.00 million to $505.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.2%. Since the same quarter one year prior, revenues slightly increased by 7.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.53, is low and is below the industry average, implying that there has been successful management of debt levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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