5 Healthcare Stocks to Buy Now According to Billionaire Larry Robbins

2. Cigna Corporation (NYSE:CI)

Glenview Capital’s Stake Value: $382.417 million

Percentage of Glenview Capital’s 13F Portfolio: 7.74%

Number of Hedge Fund Holders: 63

Cigna Corporation (NYSE:CI) is a multinational company, primarily focusing on managed health care and insurance. As of Q1 2022, Glenview Capital had approximately 1.6 million shares of the company valued at $382.317 million, representing 7.74% of the firm’s portfolio. The fund had also increased its holding in the company by 44% compared to Q4 2021.

In its most recent guidance for FY 2022, Cigna Corporation (NYSE:CI) is expected to post an EPS of $22.6 with a total growth of at least 725,000 medical customers. Furthermore, from its Evernorth segment, the company is expecting income from operations of around $6.1 billion, and $3.95 billion from Cigna Healthcare.

On July 14, Truist analyst David MacDonald maintained a Buy rating on Cigna Corporation (NYSE:CI)’s shares and raised the price target from $310 to $330. On the same day, Jefferies analyst David Windley downgraded the company shares to Hold from Buy, calling it the most vulnerable MCO to an economic downturn. Windley also reduced his price target to $271 from $330.

Here is what Davis Opportunity Fund had to say about Cigna Corporation (NYSE:CI) in its Q4 2021 investor letter:

“Healthcare is included in the portfolio both for company-specific reasons, as well as big picture trends. At the company level, we hold select companies in pharmaceuticals, healthcare services and health insurance at attractive valuations. This is at a time when the average age of the U.S. population is fast approaching 40, older than Asia-Pacific and a little younger than the aged populations of Europe and Japan. The number of seniors in the U.S.—i.e., 65 years or older— now surpasses 54 million, or about 15% of the population. Seniors, on average, take a much greater number of medications and account for a large and disproportionate share of healthcare spending, and we expect that trend to continue due to both raw demographics and a proliferation in the number of available treatments and services available now, the latter being driven by innovation and investment in the healthcare industry. Representative holdings in the Fund include Cigna, United Health Group, Viatris and Quest Diagnostics.”