CI:NYSEThe Cigna Group Analysis
Data as of 2026-05-26 - not real-time
$286.24
Latest Price
4/10Risk
Risk Level: Medium
Executive Summary
The Cigna Group is trading near $286, comfortably above its 20‑day SMA (≈$287) and 50‑day SMA (≈$277), with a neutral price trend and a modestly bullish RSI (≈52). Technicals show a bearish MACD divergence, but the stock sits on solid support at $274 and faces resistance near $303, leaving room for upside.
Fundamentally, CI appears dramatically undervalued – its trailing P/E of ~2.5 is far below the industry average of ~27.6, and the DCF‑derived fair value of $328 suggests roughly 19% upside. Revenue grew 5% YoY to $68.5 bn in Q1 2026, delivering $1.7 bn of net income ($6.26 EPS), while the dividend yield of 2.18% is supported by a very low payout ratio (~5%). Analyst sentiment is mixed, with Bernstein raising its price target to $371, yet Deutsche Bank downgraded the stock to Hold; overall, the strong cash flow, low beta (~0.5), and attractive dividend sustainability point to a compelling value play.
Fundamentally, CI appears dramatically undervalued – its trailing P/E of ~2.5 is far below the industry average of ~27.6, and the DCF‑derived fair value of $328 suggests roughly 19% upside. Revenue grew 5% YoY to $68.5 bn in Q1 2026, delivering $1.7 bn of net income ($6.26 EPS), while the dividend yield of 2.18% is supported by a very low payout ratio (~5%). Analyst sentiment is mixed, with Bernstein raising its price target to $371, yet Deutsche Bank downgraded the stock to Hold; overall, the strong cash flow, low beta (~0.5), and attractive dividend sustainability point to a compelling value play.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Bearish MACD histogram indicating limited near‑term momentum
- Support level at $274 provides downside cushion
- Recent earnings beat and modest revenue growth
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- DCF upside of ~19% and analyst price targets averaging $345
- Low valuation multiples (P/E 2.5 vs industry 27.6)
- Strong cash generation and sustainable dividend
Long Term
> 3 yearsPositive
Model confidence: 9/10
Key Factors
- Consistently low payout ratio supporting dividend growth
- Stable business model in healthcare plans with modest revenue growth
- Defensive beta and solid balance sheet despite moderate debt levels
Key Metrics & Analysis
Financial Health
Revenue Growth4.60%
Profit Margin2.26%
P/E Ratio2.5
ROE16.27%
ROA4.78%
Debt/Equity72.81
P/B Ratio1.8
Op. Cash Flow$8.8B
Free Cash Flow$6.9B
Industry P/E27.6
Technical Analysis
TrendNeutral
RSI51.7
Support$274.01
Resistance$303.33
MA 20$287.01
MA 50$277.21
MA 200$282.16
MACDBearish
VolumeDecreasing
Fear & Greed Index91.36
Valuation
Fair Value$327.81
Target Price$341.75
Upside/Downside19.39%
GradeUndervalued
TypeValue
Dividend Yield2.18%
Risk Assessment
Beta0.50
Volatility28.17%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.