The analyst suggests Cigna as a buy due to its strong rebound potential, despite current market disfavor for health insurance companies in an election year. Cigna has a proven track record of consistent earnings growth and is well-diversified across its services. The stock is trading at a significant discount (10x P/E) compared to its historical levels, offering substantial upside according to analyst targets, making it a cheap stock to pick up before a potential industry rebound.
“The company is well diversified across its specialty and care services, insurance, and pharmacy benefit services with over twothirds of its earnings power growing at high single digits.”