Core Insights - Cigna reported fourth-quarter income and revenue that surpassed analyst expectations, driven by strong growth in its specialty pharmacy operations, which helped mitigate rising medical costs [1][4] - The company's shares rose over 3% intra-day following the positive results [1] Financial Performance - Cigna's adjusted operating earnings for the quarter were $8.08 per share, exceeding Bloomberg consensus estimates of $7.88 [4] - Adjusted revenue increased by 10% year-over-year to $72.50 billion, significantly above analyst expectations of $69.53 billion [4] - The quarterly medical care ratio rose to 88% from 87.9% a year earlier, surpassing expectations of 87.4%, indicating increased spending on medical care [4] Business Segments - Evernorth, Cigna's division for pharmacy benefit management, saw a 20% year-over-year revenue increase to $36.3 billion, aided by new client additions and growth in the specialty pharmacy unit focusing on high-cost medications [3] - Cigna has shifted its focus away from offering Medicare Advantage plans for individuals aged 65 and older, instead relying more on its pharmacy benefits business and employer-sponsored health plans [2] Future Projections - For fiscal 2026, Cigna anticipates adjusted operating earnings per share of at least $30.25 and adjusted revenue of approximately $280 billion [5] - The company projects a full-year healthcare medical care ratio of 83.0% to 84.7% [5]

Core Viewpoint - CVS Health Corporation is considered one of the best cheap stocks to buy for 2026, despite a recent price target cut by BofA Securities from $100 to $95 while maintaining a Buy rating due to disappointing proposals from CMS [1]. Group 1: CMS Proposal Impact - The Centers for Medicare & Medicaid Services (CMS) proposed a net all-in rate of 2.54% for the calendar year 2027, which is below market expectations of 4-6% [2]. - The new CMS-HCC model for calculating risk scores is expected to reduce payments by approximately 1.53% in 2027, aiming to eliminate certain billing practices by excluding diagnosis information from unlinked Chart Review Records in risk score calculations starting in 2027 [2]. Group 2: Analyst Perspectives - Bernstein raised its price target for CVS to $87 while maintaining a Market Perform rating, highlighting growth opportunities through Aetna but acknowledging ongoing challenges in the pharmacy benefit manager sector [3]. Group 3: Dividend Announcement - CVS's Board of Directors approved a quarterly dividend of $0.665 per share on common stock, with payment scheduled for February 2 to shareholders on record as of January 22 [4]. Group 4: Company Overview - CVS Health operates as a diversified healthcare company, providing retail pharmacies, pharmacy benefit management services, and health insurance offerings under Aetna, including prescription drug distribution, walk-in medical clinics, and insurance plans [5].

Core Insights - Significant investors have adopted a bullish stance on Cigna Group, with 51% of trades being bullish and 32% bearish, indicating a positive outlook on the stock [1] - The expected price range for Cigna Group over the past three months is between $180.0 and $340.0, reflecting investor confidence [2] Options Trading Activity - A total of 31 trades were detected for Cigna Group, with 4 puts totaling $166,220 and 27 calls amounting to $1,515,514, showcasing a strong preference for call options [1] - The volume and open interest trends for Cigna Group's options indicate significant liquidity and interest, particularly within the strike price range of $180.0 to $340.0 [3][4] Company Overview - Cigna primarily offers pharmacy benefit management and health insurance services, significantly expanded through its 2018 merger with Express Scripts [9] - The company serves a large customer base, with 17 million US and 2 million international medical members covered as of December 2024 [10] Analyst Insights - Analysts have set an average price target of $383.0 for Cigna Group, reflecting a positive outlook on the stock's future performance [12] - Barclays maintains an Overweight rating for Cigna Group, reinforcing the bullish sentiment among analysts [13] Current Market Position - Cigna Group's stock price is currently at $314.3, up 5.83%, with a trading volume of 1,500,020, indicating strong market interest [15]