Yahoo Finance Here's How Much a $1000 Investment in Cigna Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Cigna (CI) ten years ago? It may not have been easy to hold on to CI for all that time, but if you did, how much would your investment be worth today?
Cigna's Business In-Depth
With that in mind, let's take a look at Cigna's main business drivers.
Headquartered in Bloomfield, CT and formed in 1982, Cigna Corporation has rebranded itself as The Cigna Group. The company was formed as a result of a merger between Connecticut General Life Insurance Company and Insurance Company of North America. Cigna completed its combination with Express Scripts Holding Company by 2018-end. Shares of the new combined company trade on the NYSE under the stock ticker symbol “CI.”
The global health company has also announced rebranding of its segments - Cigna Healthcare and Evernorth Health Services.
The role of the health benefits provider of the company will be fulfilled by Cigna Healthcare, which will cater to customers and clients through its U.S. Commercial, U.S. Government and International Health businesses. Meanwhile, the newly named Evernorth Health Services will be the pharmacy, care and benefits solutions provider of the company.
Till the 2022-end, the company’s reportable segments were as follows:
Evernorth Health Services (constitutes 75.7% of adjusted total segment revenues in 2022) includes a broad range of coordinated and point solution health services, including pharmacy services, benefits management, care solutions and data and analytics, which are provided to health plans, employers, government organizations, and health care providers.
Cigna Healthcare (24.3%): The segment comprises of Cigna's U.S. Commercial, U.S. Government, and International Health businesses that provide comprehensive medical and coordinated solutions to clients and customers.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Cigna, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in October 2013 would be worth $3,832.79, or a 283.28% gain, as of October 16, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 154.10% and gold's return of 44.75% over the same time frame.
Looking ahead, analysts are expecting more upside for CI.
Cigna's revenues have been increasing consistently for the past few years, driven by acquisitions, superior operating performance and a high-quality product portfolio. Business streamlining by divesting its non-core businesses helps it to focus on core growth areas. Increasing membership on the back of a diversified portfolio, wide agent network and superior service are major positives. The company has been resorting to prudent capital deployment moves through share repurchases and dividend payments. For 2023, it expects adjusted earnings per share (EPS) to be at least $24.70, up 6.1% from 2022. CI's shares have outperformed the industry in the past year. However, high leverage can affect its financial flexibility. Also, rising operating costs might dent the company's margins. As such, the stock warrants a cautious stance.
The stock is up 7.72% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Cigna Group (CI) : Free Stock Analysis Report
