Jim Cramer on Tesla and Other Stocks

5. The Cigna Group (NYSE:CI)

Number of Hedge Fund Holders: 66

When a caller asked about The Cigna Group (NYSE:CI), Cramer said, “Cigna is very well run. It’s very pro-shareholder. I like Cigna. It’s two thumbs up.”

Cigna (NYSE:CI) operates as a comprehensive provider of insurance and related services across the United States. The company specializes in delivering coordinated health services, including pharmacy benefits and care management, alongside a variety of medical, pharmacy, behavioral health, and dental products. Recently, Bloomberg has reported that discussions have emerged regarding a potential merger between the company and Humana, another major player in the health insurance market.

In a separate development, the company announced a cash dividend of $1.40 per share, which will be payable on December 19, to shareholders of record by December 4. As of October 25, the stock has a dividend yield of 1.76%.

During the second quarter earnings call, Cigna (NYSE:CI) management expressed confidence in the long-term growth prospects, highlighting expectations for average annual adjusted earnings per share growth of 10% to 14%. Additionally, the company forecasts generating a cumulative operating cash flow of $60 billion over the next five years while continuing to invest significantly to benefit shareholders.

With ongoing positive performance in its Evernorth and Cigna Healthcare divisions, management reaffirmed its expectation for consolidated adjusted income from operations to reach at least $8.065 billion or $28.40 per share for the full year 2024.