5 Stocks to Invest in Now According to Anthony Bozza’s Lakewood Capital

1. Cigna Corporation (NYSE:CI)

Lakewood Capital Management Stake Value: $157,654,000
Percentage of Lakewood Capital Management’s 13F Portfolio: 6.68%
Number of Hedge Fund Holders: 53

Cigna Corporation (NYSE:CI) is a multinational health services company which operates across multiple segments, including Evernorth, U.S. Medical, International Markets, and Group Disability. At the end of the fourth quarter of 2021, 53 hedge funds tracked by the database of Insider Monkey held stakes worth $1.93 billion in Cigna Corporation (NYSE:CI), down from 58 stakes in the preceding quarter that were worth $2.30 billion.

On February 3, Cigna Corporation (NYSE:CI) published its results for the fourth quarter, announcing earnings per share of $4.77, beating estimates by $0.06. In addition, the $45.69 billion in revenue for the period was up 9.6% year-over-year, exceeding estimates by $1.71 billion. Cigna Corporation (NYSE:CI) also announced a quarterly dividend of $1.12 per share, up 12% from the previous payout of $1.00.

On February 7, RBC Capital analyst Ben Hendrix downgraded Cigna Corporation (NYSE:CI) from ‘Outperform’ to ‘Sector Perform’, lowering the price target on the company to $235, down from $304. In a research note, the analyst claimed that the stock dropped following the Q4 results due to projections for increased medical spending pressure in 2022.

Artisan Partners Limited Partnership highlighted a few stocks in its fourth quarter 2020 investor letter, and Cigna Corporation (NYSE:CI) was one of them. Here is what the fund said:

“New purchases include Cigna. Cigna is a leading managed care company which operates through the following major segments: health services, integrated medical, international markets and group disability. It’s one of the few managed care organizations in the United States with the scale and size to compete effectively. Cigna has recently focused on deleveraging its balance sheet and further diversifying its business, after completing the Express Scripts acquisition in late 2018. Additionally, the company has partnered with Amazon, which will offer two new pharmacy options—including a self-pay offering. Cigna will administer the self-pay option through its health services division Evernorth. The partnership should be one of many strong earnings drivers for Cigna, which we believe is currently trading at an attractive valuation.”

Check out some other compelling stock picks from the world’s top hedge fund managers in 10 Stocks to Buy Now According to Wayne Yu’s BCK Capital and Top 10 Stocks to Buy According to John Orrico’s Water Island Capital.

Follow Insider Monkey on Twitter