(CI) - Top Stock Pick - Workplace Healthcare Services Provider - CIGNA Corporation

CIGNA Corporation (CI) exceeded the Street's earnings estimate in 15 consecutive quarters, most recently by 20.3%. The company increased its share repurchase program by $500 million to $790 million, and declared a quarterly dividend on Jul 26. This Zacks #1 Rank stock has a price-to-book ratio of 2.4, compared to 4.0 for the market. Full Analysis CIGNA Corporation, through its subsidiaries, provides healthcare and related benefits offered through the workplace. The company offers healthcare products and services, group disability, life and accident insurance, and disability and workers' compensation case management and related services. CI's history of exceeding analysts' earnings expectations is truly remarkable. The company topped the Street's estimate in the past 15 quarters by an average margin of 21.4%. On Aug 2, CI posted second-quarter profits of $2.31 per share, which beat analysts' forecasts of $1.92. Compared to the prior-year period, earnings were up a solid 16.7%. Consolidated revenues came in at $4.1 billion-flat when compared to the second quarter of 2005. The company expects 2006 consolidated adjusted income from operations between $960 million and $1.02 billion, or $8.30 to $8.80 per share. CI previously projected between $7.50 and $8.00. CI's earnings per share are forecasted to grow 11% over the next 3-5 years. The industry is expected to grow by 10%. Over the past 30 days consensus estimates for this quarter and next jumped 6.4% and 3.9%, respectively. Five analysts upped their forecasts for this quarter while six did so for next quarter. Profit forecasts for this year and next have risen 7.4% and 3.6%, respectively, over the same period of time. Upward revisions for this year were submitted by four analysts while six followed suit for next year. On Jul 26, CI announced that it has increased its stock repurchase authority by $500 million to $790 million. Furthermore, the company also declared a quarterly dividend of 2.5 cents per share, payable Oct 10 to shareholders of record as of Sep 11. CI is currently trading at a discounted valuation of 12.6x trailing 12-month earnings and at 12.1x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.2x trailing 12-month earnings and at 15.5x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.4, compared to 4.0 for the market. CI's level of profitability, as measured by its return on equity, exceeds that of the industry average-19% compared to 12%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home