Cigna Corp

CI
Delayed Nyse - 03/20 09:01:09 pm
167.87USD
-2.84%

Attractive timing with a long term view to go long again

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David Meurisse
Contributor / Partner

Strategy published on : 03/12/2019 | 10:35

long trade
Live

Entry price : 166.205$
Target : 179.9$
Stop-loss : 159.9$
Potential : 8.24%

Cigna Corp shares have returned to important technical levels around 163.14 USD based on weekly price data. The timing seems attractive to be a buyer of this stock.
Investors have an opportunity to buy the stock and target the $ 179.9.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.


Strengths

● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at USD 163.14 USD in weekly data.

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

● The prospective high growth for the next fiscal years is among the main assets of the company

● As regards fundamentals, the enterprise value to sales ratio is at 0.72 for the current period. Therefore, the company is undervalued.

● The company's attractive earnings multiples are brought to light by a P/E ratio at 11.11 for the current year.

● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.


Weaknesses

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

● For the past seven days, analysts have been lowering their EPS expectations for the company.

● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.

● Below the resistance at 196.28 USD, the stock shows a negative configuration when looking looking at the weekly chart.

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