Long Trade Idea
Enter your long position between $279.67 (the intra-day low of its last bearish candlestick) and $286.64 (yesterday’s intra-day high).
Market Index Analysis
- The Cigna Group (NYSE:CI) is a member of the S&P 500 Index.
- This index continues to trade near all-time highs, fueled by AI and hopes that the consumer is bending but not breaking.
- The Bull Bear Power Indicator for the S&P 500 Index is bullish with a negative divergence.
Market Sentiment Analysis
Equity futures are lower this morning amid renewed tensions between the US and Iran, but they remain near record highs. US equity markets reached a CAPE ratio of 40:1, which has happened only twice in history: 1929 and 1999, both of which were among the worst market crashes in US history. Still, the VIX remains within its average range, adding to risks, while bearish trading volumes are rising.
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The Cigna Group Fundamental Analysis
The Cigna Group is a healthcare and insurance company providing medical, dental, disability, life, and accident insurance. It focuses on offering its insurance products through employers and other groups, and CI ranks among the largest US-based companies by revenue.
So, why am I bullish on CI following despite its recent pullback?
The Cigna Group reported revenues of $68.49 billion and earnings per share of $7.79, beating expectations of $66.29 billion and $7.60, respectively, while also raising its full-year guidance. I remain bullish due to its strategic portfolio optimization, including leaving the individual exchange (ACA) business by the end of 2026 and alternatives for its eviCore care management platform. Evernorth and its Specialty and Care Services continue to drive revenues and profits, adding another bullish catalyst, while valuations are extremely low.
Metric | Value | Verdict |
P/E Ratio | 2.51 | Bullish |
P/B Ratio | 1.79 | Bullish |
PEG Ratio | 0.86 | Bullish |
Current Ratio | 0.82 | Bearish |
ROIC-WACC Ratio | Positive | Bullish |
The Cigna Group Fundamental Analysis Snapshot
The price-to-earning (P/E) ratio of 2.51 makes CI an inexpensive stock. By comparison, the P/E ratio for the S&P 500 Index is 32.40.
The average analyst price target for CI is $341.50. This suggests there is excellent upside potential with reasonable downside risks.
The Cigna Group Technical Analysis
Today’s CI Signal
The Cigna Group Price Chart
- The CI D1 chart shows price action inside a bullish price channel.
- It also shows price action attempting between its ascending 50.0% and 61.8% Fibonacci Retracement Fan levels.
- The Bull Bear Power Indicator is bearish with an ascending trendline, approaching a bullish crossover.
- The average bearish trading volumes are higher than the average bullish trading volumes, hinting at potentially more short-term volatility.
- CI advanced with the S&P 500 Index, a bullish confirmation.
My CI Long Stock Trade
- CI Entry Level: Between $279.67 and $286.64
- CI Take Profit: Between $328.26 and $338.89
- CI Stop Loss: Between $256.89 and $263.79
- Risk/Reward Ratio: 2.13
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