10 Most Profitable Value Stocks To Invest In

2. The Cigna Group (NYSE:CI)

Number of Hedge Fund Holders: 66

Forward P/E as of October 23, 2024: 11.1

10 Year Revenue Growth Rate: 20.5%

Trailing 12 Month (TTM) Net Income (June 30): $3.71 Billion

The Cigna Group (NYSE:CI) is a managed healthcare and insurance company that ranks second on our list of the most profitable value stocks to invest in. The company serves its customers through two segments, Cigna Healthcare and Evernorth Health Services. Cigna Group provides health services to more than 178 million customers across 30 countries and jurisdictions. Some of its services include health insurance plans, individual insurance plans, family plans, dental plans, and related medical plans.

Thanks to its diversified portfolio, the company delivered strong financial results in the second quarter of 2024 and expects to carry forward the trend in Q3 2024. During the second quarter of 2024, The Cigna Group (NYSE:CI) generated $60.5 billion in revenues, up by 25% year-over-year. Revenue was primarily driven by its growth in Evernorth Health Services. Adjusted income from operations, on the other hand, grew by 5% year-over-year.

Speaking of customer relationships, The Cigna Group (NYSE:CI) witnessed an increase in customers by 13% to reach 186.2 million, from December 31, 2023. Its customer relationships consist of people covered under a medical insurance policy, a managed care arrangement, or a service arrangement issued by Cigna. For the full year 2024, the company expects revenues to reach at least $235 billion and projects adjusted income from operations to reach at least $8.07 billion.

The Cigna Group (NYSE:CI) immensely benefits from its diversified business model and expansive customer base. The company is extremely focused on maintaining strong customer relationships and acquiring new ones in different markets. In addition to that, the stock is currently trading at 11 times its forward P/E, a discount of 47% to its sector median. Analysts polled by Yahoo Finance expect CI to increase earnings by nearly 14% this year.