CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Why Cigna (CI) is rated to “outperform” in 2022

By Robert Davis

21:11, 21 December 2021

Cigna logo displayed on a smartphone
Analysts say Cigna stock is undervalued and should rise in the coming year - Photo: Shutterstock

Analysts at the Bank of Montreal (BMO) believe health insurer Cigna (CI) will outperform its peers next year as the company’s fundamentals remain strong.

Cigna’s stock traded more than 1.5% higher on Tuesday after the analysts raised their price target for the stock to $300 from $275. The stock reached $219.98 by the close of the markets.

Over the last month, Cigna's stock has gained nearly 4% in value as the market continues its rollercoaster ride thanks to the Covid-19 Omicron variant and ongoing inflation.

Technical appeal

According to a note published by BMO analyst Matt Borsch, Cigna is showing several technical indicators that the stock is undervalued.

For instance, Cigna is currently trading at under 10-times the value of its earnings per share compared to the near 40-times multiple for many of its peers.

One reason the stock is trading at such a discount is that Cigna had to cut its earnings outlook in the second quarter, which “spooked” many investors, according to Borsch.

What is your sentiment on CI?

Vote to see Traders sentiment!


2,199.78 Price
+1.230% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00


15,953.90 Price
-0.260% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8


40,143.80 Price
+1.280% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


0.63 Price
+0.320% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

Well prepared for future success

However, Borsch also argues that Cigna is well prepared for future success because of its connected business mix.

Cigna said in its third quarter earnings statement that it was able to increase its total customer base to more than 17 million because of net growth across its commercial, government, and international sectors.

Meanwhile, the business was also able to grow its revenue by over 9% to more than $33bn without sacrificing its operating margin. In Q3, Cigna reported a margin of 9.4% compared to the 7.9% margin it reported in Q3 2020.

Even though Cigna CEO David Cordani didn’t give investors a full-year outlook during his call with BMO, Borsch said Cordani gave a preliminary outline of “at least” 10% growth in per-share earnings.

“Nonetheless, CCI shows increasing confidence that these headwinds are diminishing, fully reflected in guidance, and most importantly embedded in actions CI has taken for 2022 (eg, prices) with only a partial caveat for potential impact from the Omicron variant of Covid-19,” Borsch wrote.

Read more: Cigna beats first-quarter earnings and revenue estimates

Markets in this article

269.13 USD
6.14 +2.340%
269.13 USD
6.14 +2.340%

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading