10 Best Health Insurance Stocks to Buy

5. The Cigna Group (NYSE:CI)

Number of Hedge Fund Holders: 66

The Cigna Group (NYSE:CI) and its subsidiaries focus on providing insurance and related services in the United States, including pharmacy benefits, home delivery pharmacy, and specialty pharmacy distribution. Under the Cigna Healthcare brand, the company provides a range of government, employer-based, and individual health plans. However, it saw a “year-to-date decrease in individual and family plan customers” due to targeted pricing adjustments in specific regions. As a result, the company reported 19 million medical customers, down from 19.5 million last year. Despite this, Cigna Healthcare’s income from operations and overall revenues grew by 3%, driven by premium hikes, operational efficiencies, and investment income, which helped offset rising medical care costs.

The Cigna Group (NYSE:CI) reported strong earnings for the second quarter of 2024, with total revenue reaching $60.5 billion—a 25% increase from the previous year, while the adjusted EPS grew by 10% year-over-year to $6.72. This impressive growth spanned multiple business segments, including Evernorth Health Services and Care Services, with Evernorth’s adjusted income rising 12%.

In addition, Jefferies raised its price target for CI from $402 to $422, maintaining a Buy rating. This adjustment followed discussions with Cigna’s CFO Brian Evanko and Investor Relations lead Ralph Giacobbe, who pointed out key growth drivers, such as the expected impact of several specialty drugs losing exclusivity by 2030, which could benefit Cigna’s Specialty business. They also highlighted the company’s ability to adapt its Express Scripts revenue streams to regulatory changes.

According to Insider Monkey’s database, the number of hedge funds holding stakes in The Cigna Group (NYSE:CI) increased to 66 in Q2 2024, up from 61 in the previous quarter, with total stakes valued at over $2.77 billion. Alongside AQR Capital, Glenview Capital also emerged as one of the company’s top stakeholders during the quarter.