5 Undervalued Insurance Stocks to Buy Now

1. Cigna Corporation (NYSE:CI)

Number of Hedge Fund holders: 76

Cigna Corporation (NYSE:CI) is an American healthcare and insurance company. On November 23, Morgan Stanley analyst Erin Wright initiated the company’s coverage with an Overweight rating and a $347 price target. She believes that Cigna Corporation (NYSE:CI) presents “a unique investment opportunity.”

In the third quarter of 2022, Cigna Corporation (NYSE:CI) posted a non-GAAP EPS of $6.04, beating the estimates by 33 cents. The revenues were up 2.2% year-over-year to $45.28 billion and outperformed the forecasts by $570 million. Cigna Corporation (NYSE:CI) also updated its FY22 outlook with a revenue projection of at least $179 billion compared to the previous outlook of $178 billion. In addition, the company expects its net income to be at least $23.10 per share, up from $22.90.

Cigna Corporation (NYSE:CI) is one of the best undervalued dividend stocks as it is trading at a PE ratio of 14.73, which is slightly below the industry average. The company also has several growth catalysts waiting to pop, making the company an interesting prospect for long-term investors.

Cigna Corporation (NYSE:CI) is a dividend stock with a yield of 1.36% as of December 13. The company has a payout ratio of 18.07% and in the last 3 years, its dividend grew at a CAGR of 382%.

Aristotle Atlantic Partners, LLC made the following comment about Cigna Corporation (NYSE:CI) in its Q3 2022 investor letter:

“Cigna Corporation (NYSE:CI) outperformed the S&P 500 Index in the third quarter, as the company reported what we view as solid second quarter results driven by a better-than-expected medical loss ratio. The company continues to be aggressive with share repurchases and we believe the defensive nature of Cigna’s business continues to be attractive during the ongoing macroeconomic uncertainty.”

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