The Cigna Group (CI), headquartered in Bloomfield, Connecticut, provides insurance and related products and services. Valued at $84.6 billion by market cap, the company offers life, accident, disability, supplemental, medicare, and dental insurance products and services. 

Companies worth $10 billion or more are generally described as “large-cap stocks,” and CI perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the healthcare plans industry. CI is a market leader in comprehensive medical plan services, with a strong financial position and a solid reputation, especially after merging with Express Scripts. Its innovative approach to health care, including AI technologies and predictive analytics, sets it apart in the industry. Strategic partnerships and investments in companies like VillageMD highlight its commitment to expanding care delivery capabilities.

Despite its notable strength, CI slipped 15.1% from its 52-week high of $370.83, achieved on Sep. 16, 2024. Over the past three months, CI stock gained 2%, outperforming the iShares U.S. Healthcare Providers ETF’s (IHF) 7% dip during the same time frame.

In the longer term, shares of CI rose 14.1% on a YTD basis but fell 8.6% over the past 52 weeks, outperforming IHF’s YTD losses of 1.5% and 10.2% over the last year.

To confirm the bearish trend, CI has been trading below its 50-day and 200-day moving averages since early May. 

Cigna has seen strong stock performance due to its strategic integration of pharmacy benefit management, insurance coverage, and care delivery. Cigna has focused on higher-margin commercial insurance and health services, and its initiatives like EncircleRx and EnGuide aim to reduce therapy costs and improve adherence, position it for future success in value-based care. 

On May 2, CI shares closed down marginally after reporting its Q1 results. Its adjusted EPS of $6.74 beat Wall Street expectations of $6.39. The company’s adjusted revenue was $65.5 billion, exceeding Wall Street forecasts of $60.8 billion.

CI’s rival, Humana Inc. (HUM) shares lagged behind the stock, with a 8.8% loss on a YTD basis and 35.4% decline over the past 52 weeks.

Wall Street analysts are bullish on CI’s prospects. The stock has a consensus “Strong Buy” rating from the 21 analysts covering it, and the mean price target of $378.90 suggests a potential upside of 20.3% from current price levels.