Yahoo Finance Should Value Investors Buy Cigna (CI) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Cigna (CI). CI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also note that CI holds a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CI's industry has an average PEG of 1.59 right now. CI's PEG has been as high as 1.27 and as low as 0.87, with a median of 1.03, all within the past year.
Another notable valuation metric for CI is its P/B ratio of 2.09. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.11. Over the past year, CI's P/B has been as high as 2.30 and as low as 1.53, with a median of 1.85.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CI has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.89.
Finally, our model also underscores that CI has a P/CF ratio of 9.92. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.02. CI's P/CF has been as high as 11.10 and as low as 8.65, with a median of 10.08, all within the past year.
If you're looking for another solid Insurance - Multi line value stock, take a look at Zurich Insurance Group (ZURVY). ZURVY is a # 2 (Buy) stock with a Value score of A.
Zurich Insurance Group is currently trading with a Forward P/E ratio of 11.62 while its PEG ratio sits at 1.54. Both of the company's metrics compare favorably to its industry's average P/E of 9.72 and average PEG ratio of 1.59.
Over the past year, ZURVY's P/E has been as high as 15.14, as low as 9.97, with a median of 11.59; its PEG ratio has been as high as 2.03, as low as 1.05, with a median of 1.03 during the same time period.
Zurich Insurance Group also has a P/B ratio of 2.54 compared to its industry's price-to-book ratio of 3.11. Over the past year, its P/B ratio has been as high as 2.56, as low as 1.60, with a median of 2.16.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Cigna and Zurich Insurance Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CI and ZURVY feels like a great value stock at the moment.
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Cigna Corporation (CI) : Free Stock Analysis Report
Zurich Insurance Group Ltd. (ZURVY) : Free Stock Analysis Report
