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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details