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Cigna Corp (CI) has been outperforming the market for over 12 months, and has had a Very Bullish Chaikin Power Gauge stock rating since late October. CI has advanced more than 80% since October but has been the subject of takeover rumors involving Anthem Health (ANTM), which also has a bullish Power Gauge rating. Cigna has reportedly rebuffed takeover bids from ANTM, with the last bid at $184.
On its own, Cigna is expected to show an earnings increases of 15% in both 2015 and 2016. With Cigna in play as a Merger & Acquisition target, it may take a price in the $195–200 range to get a deal done.
Cigna sold off 4% last week as market weakness spilled over into the very strong Health Care sector. Buy Cigna on any further market pullbacks in anticipation of a takeover bid from Anthem above $190 winning out.
Friday’s announcement that Aetna (AET) would buy Humana Corp (HUM) for $35 billion increases the pressure on Cigna’s board of directors to respond favorably to a sweetened bid from Anthem, or come up with a white knight to counter ANTM’s bid.
Cigna Corp has a Very Bullish Chaikin Power gauge stock rating that is driven by a Very Bullish Earnings component as well as Very Bullish Technical price/volume activity. CI is in the very strong Health Care Sector that has been leading the market higher.
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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.
