Markets

Cigna (CI) Poised to Beat on Earnings in Q3: Here's Why

We expect health insurer Cigna Corp.CI to beat expectations when it reports third-quarter 2015, before the opening bell on Nov 6.

Why a Likely Positive Surprise?

Our proven model shows that Cigna is likely to beat on earnings because it has the right combination of key factors.

Zacks ESP: Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.92%. This is a meaningful indicator of a likely positive earnings surprise for this company.

Zacks Rank: Cigna carries a Zacks Rank #3 (Hold). The stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings.

The Sell-rated stocks ( #4 or 5) should never be considered going into an earnings announcement.

The combination of Cigna's Zacks Rank #3 and +0.92% ESP make us confident of an earnings beat.

What is Driving Better-than-Expected Earnings?

Cigna's third-quarter quarter results are expected to demonstrate its continued operating strength. The company delivered positive surprises in 10 out of the past 11 quarters.

We expect Cigna to continue posting favorable results on solid revenue growth in government business, disciplined expense management and effective medical cost management.

The company's Global Supplements business is expected to add to its earnings.

Favorable medical utilization along with medical cost management is expected to contribute to the bottom line.

Moreover, its strong balance sheet should support its results.

Other Stocks to Consider

Here are some other companies you may want to consider as these too have the right combination of elements to post an earnings beat this quarter:

PennantPark Investment Corporation PNNT has an Earnings ESP of +3.7% and a Zacks Rank #1. The company will release earnings results on Nov 10.

CoLucid Pharmaceuticals, Inc. CLCD has an Earnings ESP of +11.27% and a Zacks Rank #1. The company will release earnings results on Nov 11.

Navios Maritime Acquisition Corporation NNA has an Earnings ESP of +8.33% and a Zacks Rank #2. The company will release earnings results on Nov 19.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CIGNA CORP (CI): Free Stock Analysis Report

PENNANTPARK INV (PNNT): Free Stock Analysis Report

NAVIOS MARI ACQ (NNA): Free Stock Analysis Report

COLUCID PHARMA (CLCD): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

PNNTCI

Other Topics

Earnings Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More