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Assessing Cigna Group (CI) Valuation As Specialty Pharmacy Growth Meets Choppy Recent Returns

Simply Wall St · 3d ago

Cigna Group (CI) remains in focus for investors after recent trading left the stock around $279.12, with returns mixed across different periods and financial results that include revenue of about $268.1 billion and net income of roughly $6.1 billion.

See our latest analysis for Cigna Group.

Recent trading has been choppy, with a 1 day share price return of about a 2% decline and a 90 day share price return of an 8.8% decline. The 5 year total shareholder return of 36.3% points to steadier long term progress, suggesting shorter term momentum has been fading even as longer term holders have still seen gains.

If Cigna’s moves have you thinking about where else to put your money to work, this could be a good moment to scan other healthcare stocks that might fit your portfolio.

With Cigna trading around $279.12, carrying a value score of 5, an intrinsic discount of about 66%, and a price target near $326, you have to ask: is this a genuine mispricing, or is the market already baking in future growth?

Most Popular Narrative: 14.3% Undervalued

Compared with Cigna Group’s last close at about $279.12, the most followed narrative points to a fair value near $325.57, implying meaningful upside in that framework.

Cigna is capitalizing on the growing demand for specialty pharmacy and care services, particularly as chronic diseases and complex treatments become more prevalent. The double-digit revenue growth in CuraScript and Accredo positions the company to capture an expanding portion of the high-growth $400B+ specialty space, supporting long-term revenue and earnings growth.

Read the complete narrative.

Want to see what is behind that specialty pharmacy story and the fair value estimate? The narrative leans heavily on future revenue, margins and the profit multiple applied to those earnings. Curious which assumptions really carry the model and how sensitive that $325.57 figure is to them? Read on and decide whether those expectations line up with your own view.

Result: Fair Value of $325.57 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this story can change quickly if tighter PBM regulation hits Evernorth margins, or if Cigna’s reduced focus on government programs limits future revenue opportunities.

Find out about the key risks to this Cigna Group narrative.

Build Your Own Cigna Group Narrative

If the current story does not quite match your view, you can dig into the numbers yourself, stress test the assumptions, and Do it your way in a few minutes.

A great starting point for your Cigna Group research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If you are weighing what to do next after looking at Cigna, do not stop here. Broaden your watchlist and give yourself more options to compare.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.