5 Most Undervalued Healthcare Stocks To Buy According To Hedge Funds

3. The Cigna Group (NYSE:CI)

TTM PE Ratio as of October 26: 13.8

Number of Hedge Fund Holders: 74

The Cigna Group (NYSE:CI) is a Connecticut-based managed healthcare and insurance company. In the second quarter, Glenview Capital was the biggest stakeholder of the company with over 2 million shares worth $579.59 million. In the quarter, 74 hedge funds had a stake in The Cigna Group (NYSE:CI) worth $4.065 billion, bringing it to the 3rd spot on our list of most undervalued healthcare stocks according to hedge funds.

In the last three months, 6 out of 10 Wall Street analysts that have covered The Cigna Group (NYSE:CI) keep a Buy or Overweight rating on the company stock. The average analyst price target of $342 shows a 10.26% upside to the company’s stock price at the time of market close on October 19.

ClearBridge Investments mentioned The Cigna Group (NYSE:CI) in its investor letter for the first quarter of 2023. The firm said:

“At the same time, we exited health insurance company The Cigna Group (NYSE:CI), whose strong outperformance over the last year has resulted in shares trading at a significant premium relative to competitor CVS Health. Additionally, we view CVS Health’s underperformance as driven by temporary issues and believe it has a good likelihood of succeeding in its improvement initiatives following upgrades to the management team and its acquisition of Oak Street Health. As a result, we elected to swap our position in Cigna into CVS Health to capitalize on the valuation gap while maintaining similar exposure within the sector.”