Cigna Corp: Long opportunity with trend

Stocks forecast /CI.US/ Our expectations:

The price is in a strong ascending trend after adjusting to horizontal, diagonal and dynamic support (50SMA) where it forms a bullish pin, then a consolidation day and is currently testing the level by giving us a good price for a short stop entry. During the consolidation, volumes have increased during the last three days, meaning that the level is significant. Our expectations are the price to continue the upward trend and test the previous peak.

SL: 177.00

Cigna Corp. is a healthcare company and offers healthcare services such as international health insurance, international health insurance, and drug and alcohol dependence solutions, with the company counting on the latter and serious progress in the field.

Financially, the company has had good results, with a debt-to-income comparison of the company showing that it is 8 times smaller than sales revenue, with a slight decline in the past 7 years. The company's earnings projections for 2018 are to remain virtually unchanged in the first half of the year and to increase by 12% by the end of the year.

The net income of the company is strong growth in 2016, up 21% higher and is expected to reach $ 2.5 billion by the end of the year.

EPS of the company has grown over the years, with expectations at the end of the year reaching 11.33.

When comparing stock price with SP500, it is clear that the stock is underestimated against its index, making it attractive to most investors using this selection method.

Compared with the iShares Global Healthcare sector, price developments show that it remains relatively calm, amid corrections in the sector. This means that investors are sure in the company even during insecurity in the sector.

Alternative Scenario: If the price goes under diagonal and horizontal support, the positive scenario will break and more likely to see a drop in the stock price.

Jr Trader Petar Milanov

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