Although its merger with Anthem is in question, this insurer is projected to see double-digit growth next year.
Cigna Corp. (CI)
From Positive Patterns
I am always amazed and disappointed at how bad my short term ‘reads’ are on stocks. Cigna Corp. (CI) is an example. I had been saying that I thought the government would reject the merger (with Anthem). I was right about that, but also thought these stocks would fall when it happened, and of course, as we can see, I was wrong. In fact, CI rallied very strongly after the announcement that the government would oppose these mergers.
I want you to be a buyer of this stock for these reasons:
CI has the best book of business, and that is critical
The peak for Cigna (CI) was $170, and in the last year, it has fallen off those highs and traded pretty much in a sideways range of $125 to $145 most of the time. Once CI can get out above $150, I would expect a good rally from there.
If you are looking for a good/quality insurance stock as a good buy-hold, buy this one for growth. It doesn’t pay much of a dividend, but Cigna is a great company, with an exciting future, and I think it will be a good wealth-builder. If you are looking for A+ quality SPX stocks that should outperform the SPX the next 10 years or so, this one is a good one.
Bob Howard, Positive Patterns, P.O. Box 310, Turners, MO 65765, 417-887- 4486, July 22, 2016