5 Undervalued Stocks to Buy According to Billionaire Leon Cooperman

3. Cigna Corporation (NYSE:CI)

Omega Advisors’ Stake Value: $103,334,000

Percentage of Omega Advisors’ 13F Portfolio: 5.19%

PE Ratio as of May 25: 11.66

Number of Hedge Fund Holders: 63

Cigna Corporation (NYSE:CI) provides insurance and related products and services in the United States. The stock is among the top 10 holdings of Omega Advisors and is also one of the best undervalued stocks to buy according to billionaire Leon Cooperman. 

This May, Barclays analyst Steve Valiquette raised his price target on Cigna Corporation (NYSE:CI) to $310 from $275 and reiterated an Overweight rating on the shares ahead of the company’s investor day on June 3. 

By the end of Q1 2022, 63 hedge funds were long Cigna Corporation (NYSE:CI) with stakes of $2.69 billion in the company. This is compared to 53 hedge funds in the fourth quarter of 2021, with stakes of $1.92 billion. The hedge fund sentiment for the stock is positive.

Here is what Davis Funds had to say about Cigna Corporation (NYSE:CI) in its “Davis Opportunity Fund” fourth-quarter 2021 investor letter:

“Healthcare is included in the portfolio both for company-specific reasons, as well as big picture trends. At the company level, we hold select companies in pharmaceuticals, healthcare services and health insurance at attractive valuations. This is at a time when the average age of the U.S. population is fast approaching 40, older than Asia-Pacific and a little younger than the aged populations of Europe and Japan. The number of seniors in the U.S.—i.e., 65 years or older— now surpasses 54 million, or about 15% of the population. Seniors, on average, take a much greater number of medications and account for a large and disproportionate share of healthcare spending, and we expect that trend to continue due to both raw demographics and a proliferation in the number of available treatments and services available now, the latter being driven by innovation and investment in the healthcare industry. Representative holdings in the Fund include Cigna, United Health Group, Viatris and Quest Diagnostics.”