Fears of increased regulation and negative political headlines have hurt all health insurers and Cigna is especially cheap. The stock trades at a very low valuation with double-digit sales and earnings growth and a single digit P/E ratio. From 2014-2019 Cigna's earnings compounded over 16% and the company generates free cash flow in excess of $9 billion annually. That is a free cash flow yield in excess of 13%. Cigna expects earnings to reach $20-$21 per share by 2021. The company maintains a 97% customer retention rate and management expects 10%-15% customer growth over the next 5 years.
From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management fall 2020 market commentary.
