Top 10 Health Insurance Stocks To Buy

5. The Cigna Group (NYSE:CI)

Number of Hedge Fund Holders: 72

The Cigna Group (NYSE:CI) specializes in providing insurance and associated services in the United States, such as pharmaceutical benefits, home delivery pharmacy, and specialty pharmacy distribution. Under the Cigna Healthcare brand, the company offers a variety of government, employer-based, and private health plans.

On January 30, BofA Securities maintained a Buy rating on The Cigna Group (NYSE:CI) stock, with a price objective of $420. The adjustment occurred after the company announced an unexpected 13% drop in fourth-quarter earnings, recording $1.03 per share, and reduced its 2025 earnings forecast downward by $1.74, a 6% decline. In addition, investors have expressed worries over the company’s performance shortfalls, notably in the health plan industry and, to a lesser extent, in the pharmacy benefit management market. Despite these risks, BofA Securities believes that The Cigna Group (NYSE:CI) stock’s current value may restrict additional decline.

The Cigna Group (NYSE:CI) repurchased 20.9 million shares of common stock for about $7 billion in 2024, with intentions to continue repurchasing shares through 2025. The firm intends to spend the bulk of the profits from the sale of its Medicare businesses, which is expected to conclude in the first quarter of 2025.