10 Wonderful Stocks to Buy Now at a Fair Price

4) The Cigna Group (NYSE:CI)

Expected Earnings Growth: 13.6%

Number of Hedge Fund Holders: 66

Forward P/E Multiple (As of September 30): 10.81x   

The Cigna Group (NYSE:CI) offers insurance and related products and services in the United States.

The Cigna Group (NYSE:CI)’s diversified and complementary business lines, together with its comprehensive medical plan services and coordinated solutions, continue to form a wide economic moat. Moreover, its unique managed care organization business emphasizing pharmacy benefit management, specialty pharmacy services, and employer-based medical insurance should continue to act as critical tailwinds for long-term growth.

The pharmacy benefit services business, Express Scripts, should continue to be aided by strong client demand and innovation. While The Cigna Group (NYSE:CI) remains on track to divest Medicare Advantage business by Q1 2025, it reaffirmed its commitment to negotiating affordable pharmaceutical prices and is confident about achieving the growth targets for 2024 and beyond. The Cigna Group (NYSE:CI) expects continued growth in US employer Select and Middle market segments.

Despite the potential softening in the employer marketplace, the company expressed confidence in securing appropriate pricing for 2025. The Cigna Group (NYSE:CI) remains focused on offering access to the lowest-cost and best-available solutions, including biosimilars. The company expects growth opportunities in specialty areas, which include new therapies and expanding relationships. Given the strategic investments in innovative programs and a focus on affordability and value, The Cigna Group (NYSE:CI) remains well-placed to maintain a competitive edge.

Cantor Fitzgerald reaffirmed an “Overweight” rating on the shares of The Cigna Group (NYSE:CI), issuing a price target of $400.00 on 16th September. Out of 912 hedge funds we tracked at the end of Q2 2024, The Cigna Group (NYSE:CI) was in the portfolios of 66 hedge funds.