Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

Cigna Looks Good Here If One Believes Newly Insured Utilization Rates Will Level Off

Most investors are at least somewhat familiar with health insurance giant Cigna (NYSE:CI). The ~$25B behemoth is one of the most important insurance companies in the US and notably it's also one of the most stable with consistently increasing revenues and earnings over the last five years. Despite this, Cigna is remarkably cheap today trading around 13X ttm PE recently. This situation is likely due to continued investor nerves over the end results of Obamacare and the ultimate effect on CI's bottom line. I believe these fears are largely overdone as I will explain in a moment, and while given its size Cigna is probably not going to be able to grow at the same rate as smaller...

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