Cigna (CI) Hits New Lifetime High

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 a new lifetime high 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 $115.3 million.
  • CI has traded 8,680 shares today.
  • CI is trading at a new lifetime high.

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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%. CI has a PE ratio of 13.3. Currently there are 8 analysts that rate Cigna a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Cigna has been 1.7 million shares per day over the past 30 days. Cigna has a market cap of $24.7 billion and is part of the health care sector and health services industry. The stock has a beta of 0.77 and a short float of 1% with 2.44 days to cover. Shares are up 5.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cigna as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 826.3% when compared to the same quarter one year prior, rising from $57.00 million to $528.00 million.
  • CI's revenue growth trails the industry average of 16.9%. Since the same quarter one year prior, revenues slightly increased by 3.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Providers & Services industry and the overall market, CIGNA CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • Powered by its strong earnings growth of 860.00% and other important driving factors, this stock has surged by 27.99% 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.

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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