Cigna(US:CI) Yahoo Finance·2025-09-28 20:23Core Thesis - The Cigna Group is viewed as a compelling investment opportunity due to its strong fundamentals and tactical "buy-the-dip" setup following a nearly 12% decline in share price from June highs [2][6]. Financial Performance - Cigna's share price was $293.76 as of September 18th, with trailing and forward P/E ratios of 16.26 and 9.13 respectively [1]. - The company is experiencing mid-single-digit revenue and EPS growth, with a net margin of approximately 4.5%, which exceeds the managed-care average [2]. - Cigna maintains robust free cash flow supported by modest leverage, indicating financial stability [2]. Valuation and Market Position - The stock is valued at around 15 times forward EPS, slightly below peers despite higher return on equity (ROE) and superior cash conversion, suggesting it is fundamentally attractive [3]. - The stock trades below major moving averages, indicating a bearish bias, but momentum indicators suggest potential near-term relief [4]. Technical Analysis - Key support levels are identified around $285–280, with protective stops near $270, while resistance is mapped at $305–312 [4]. - A sustained recovery above the 100- and 200-day simple moving averages (SMAs) could lead to a medium-term price range of $320–340 [4]. Investment Strategy - A disciplined trade plan involves scaling into weakness, targeting a relief bounce followed by longer-term upside based on stable fundamentals [5]. - Cigna is positioned as a buy-on-weakness opportunity, with valuation, cash flow strength, and upcoming earnings acting as pivotal drivers for a potential rerating [5].