Cigna: Price Pullback Is A Great Opportunity

Summary

• Cigna trades at a significant discount to the S&P 500, offering a higher yield and faster dividend growth, making it attractive for total return investors.
• CI's robust earnings growth is fueled by its Evernorth and Healthcare segments, with strong results and promising exposure to the booming GLP-1 drug market.
• Management targets 10-14% annual EPS growth, supported by aggressive share buybacks and a safe, growing dividend nearly double the S&P 500 yield.
• The recent price dip creates an appealing entry point for a high-quality compounder.
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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CI over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.